After 10 years of back-to-back slumps, global livability is finally showing an improvement, according to report released by the Economist Intelligence Unit on Wednesday. But terrorism, including several high-profile attacks in Europe, continues to threaten world living standards, a EIU statement on the report said.

The average livability score worldwide has fallen from 76.1 percent in 2007 to 74.8 percent today due to a combination of economic and political risks, the statement said. This year, the report registered a marginal average improvement in global scores: 0.06 percentage points.

Still, uncertainty due to perceived terror threats has resulted in lower scores for some cities. While Europe remains the region with the most livable cities, it saw a decline in ratings in the wake of several terrorist attacks, including those on Manchester, London and Stockholm.

"European cities have been dealing with the aftermath of terrorist attacks, increased unease towards Brexit, and there is still a degree of unease towards migrant crisis," Stefano Scuratti, EIU consulting principal, told CNBC.