According to the analysis by U.S. News & World Report on Tuesday, Germany will have to console itself with only being the fourth best country in the world in 2017.
"Germany, which has seen its role in the international community grow steadily since reunification, ranks No. 4 overall," said Deidre McPhillips, data reporter at U.S. News & World Report in a written statement to The Local.
"Compared to last year, Germany ranks three spots worse in both the overall ranking and in Citizenship, falling to No. 4 and No. 10, respectively."
The countries competing for the crown were extended from 60 to 80 this year, with the debutante Switzerland being named the world's best country.
Germany's fall from grace was explained by a drop in the rankings in three categories - open for business, citizenship and quality of life.
“The nation was rocked by a range of events – from growing public anxiety over an influx of refugees to a string of deadly terror attacks,” the report explains.
It wasn't all doom and gloom for the Bundesrepublik, though. The country was ranked number one for entrepreneurship, though only came in at 20th place for starting a business.
The results of the study come from a survey of 21,000 people across the globe, who were asked to score the countries according to 65 attributes which covered a broad range of categories from equality, to adventure, to power and quality of life.