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Home » Articles » Comparing the cost of living around the world in 2024

Comparing the cost of living around the world in 2024

Cost is a heavy determinant in most aspects of a business, especially during its setup.

Naturally, developed countries have higher costs in anything compared to developing ones. Their high average salaries in these locations match their towering expenses, from renting office spaces to the technology and tools to use at work.

This is one of the reasons why businesses outsource their services – to have a cost-efficient option for running their operations while maintaining the quality of services.

If you are curious about taking your business to other locations, here is a comparison of the cost of living in different countries in 2024.

Calculating the cost of living

The cost of living refers to measuring the cost of goods and services. It is a standard way of determining how much an individual or a family should pay to live comfortably in a particular city or country.

The cost of living is calculated by comparing the prices of basic expenses in a specific area to another location. These costs are divided into basic necessities such as housing, food, and utilities and can be affected by the consumer price index (CPI).

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By getting the cost of living in different locations, you get a better understanding of which is an ideal place to live and do business with, depending on your standards.

Calculating the cost of living
Calculating the cost of living

Challenges in calculating the cost of living by country

While comparing the cost of living in different cities seem manageable, comparing in other countries can be more complex. This is because you must find similar items within the countries you compare.

Apart from this, you might face several challenges in comparing the cost of living by country, including the following.

  • Inflation. While inflation strikes the change of prices worldwide, its impact can vary based on the country you are looking at.
  • Basic necessities. Necessities also vary depending on the country you are comparing them with.
  • Consumer behavior. Along with necessities, consumer behavior differs depending on what’s available for the consumers.

Comparing the cost of living around the world in 2024

Different statistics websites and institutions have their ways of determining the cost of living in an area.

One of the best ways to compare them is by using a cost of living calculator to analyze and compare prices in different countries, as presented through the cost of living index (CLI).

Using data from Numbeo, we will compare different countries in terms of their cost of living.

Top 10 countries with low costs of living

Country2023 PopulationAverage SalaryCost of living index  (CLI)Cost of living per monthCost of living per month
Single personFamily of four
Pakistan232,916,764PKR 24,028.00 (US$ 86.17)18.0PKR 80,955.20PKR 259,108.60
Egypt106,220,000EGP 9,200.00 (US$ 297.86)21.6EGP 9,496.30EGP 32,881.80
India1,428,627,663INR 33,120.47 (US$ 404.16)22.4INR 26,698.50INR 91,289.30
Colombia52,085,168COP 4,690,000.00 (US$ 1,059.83)23.1COP 1,789,748.50COP 6,111,809.50
Libya6,888,388LYD 2,290.00 (US$ 482.58)24.2LYD 1,858.80LYD 6,562.30
Nepal30,896,590NPR 84,000.00 (US$ 691.16)24.8NPR 43,576.10NPR 151,455.30
Sri Lanka21,893,579LKR 89,800.00 (US$ 279.11)25.3LKR 134,386.00LKR 477,593.50
Ukraine36,744,634UAH 23,000.00 (US$ 625.00)25.6UAH 16,518.50UAH 56,944.80
Kyrgyzstan6,735,347KGS 30,273.00 (US$ 345.88)25.9KGS 38,068.50KGS 136,704.60
Syria23,019,328SYP 149,000.00 (US$ 59.30)26.1SYP 882,476.20SYP 3,039,690.00

Top 10 countries with high costs of living

Country2023 PopulationAverage SalaryCost of living index (CLI)Cost of living per monthCost of living per month
Single personFamily of four
Bermuda61,635BMD 1,523.33 (US$ 1,523.33)141.8BMD 1,936.10BMD 7,030.50
Switzerland8,831,899CHF 6,652.00 (US$ 7,449.30)114.2CHF 1,468.90CHF 5,360.60
Cayman Islands67,882KYD 3,241.67 (US$ 3,906.65)103.4Not indicatedNot indicated
Bahamas403,760BSD 3,900.00 (US$ 3,898.00)90.9BSD 1,301.50BSD 4,572.80
Barbados288,360BBD 3,368.33 (US$ 1,675.53)88.8BBD 2,269.40BBD 8,304.50
Norway5,539,981NOK 50,550.00 (US$ 4,794.29)88.6NOK 11,947.70NOK 42,481.80
Singapore5,979,222SGD 5,783.00 (US$ 4,328.45)85.9SGD 1,519.10SGD 5,457.30
Iceland387,758ISK 770,385.00 (US$ 5,652.54)83.3ISK 165,191.10ISK 608,596.50
Jersey102,785GBP 5,150.00 (US$ 1,523.33)80.0GBP 927.50GBP 3,296.50
Denmark5,849,313DKK 45,904.00 (US$ 6,790.95)78.6DKK 7,510.00DKK 26,746.70

How quality of life relates to the cost of living

Quality of life determines what it’s like to live in a particular country. It looks at several factors, including access to essential services and the safety of its citizens.

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The cost of living is only one aspect that determines the quality of life in that country. A high cost of living could indicate that people have difficulties attaining a sustainable life due to the high prices of goods and services.

Though, it depends on whether the average salary in a location fares with these costs.

How quality of life relates to the cost of living
How quality of life relates to the cost of living

Check out the cost of living in offshoring countries

A high cost of living also implies that small businesses can face challenges setting up shops in their country. With your area’s towering costs and talent limitations, keeping everything in-house might not be sustainable for your company in the long run.

Another option to look upon is offshoring. Normally, the top offshoring destinations in the market usually have low costs of living and a high supply of quality talents you can hire.

You may check out the cost of living in offshoring countries.

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