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).
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.
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
| Country | 2023 Population | Average Salary | Cost of living index (CLI) | Cost of living per month | Cost of living per month |
| Single person | Family of four | ||||
| Pakistan | 232,916,764 | PKR 24,028.00 (US$ 86.17) | 18.0 | PKR 80,955.20 | PKR 259,108.60 |
| Egypt | 106,220,000 | EGP 9,200.00 (US$ 297.86) | 21.6 | EGP 9,496.30 | EGP 32,881.80 |
| India | 1,428,627,663 | INR 33,120.47 (US$ 404.16) | 22.4 | INR 26,698.50 | INR 91,289.30 |
| Colombia | 52,085,168 | COP 4,690,000.00 (US$ 1,059.83) | 23.1 | COP 1,789,748.50 | COP 6,111,809.50 |
| Libya | 6,888,388 | LYD 2,290.00 (US$ 482.58) | 24.2 | LYD 1,858.80 | LYD 6,562.30 |
| Nepal | 30,896,590 | NPR 84,000.00 (US$ 691.16) | 24.8 | NPR 43,576.10 | NPR 151,455.30 |
| Sri Lanka | 21,893,579 | LKR 89,800.00 (US$ 279.11) | 25.3 | LKR 134,386.00 | LKR 477,593.50 |
| Ukraine | 36,744,634 | UAH 23,000.00 (US$ 625.00) | 25.6 | UAH 16,518.50 | UAH 56,944.80 |
| Kyrgyzstan | 6,735,347 | KGS 30,273.00 (US$ 345.88) | 25.9 | KGS 38,068.50 | KGS 136,704.60 |
| Syria | 23,019,328 | SYP 149,000.00 (US$ 59.30) | 26.1 | SYP 882,476.20 | SYP 3,039,690.00 |
Top 10 countries with high costs of living
| Country | 2023 Population | Average Salary | Cost of living index (CLI) | Cost of living per month | Cost of living per month |
| Single person | Family of four | ||||
| Bermuda | 61,635 | BMD 1,523.33 (US$ 1,523.33) | 141.8 | BMD 1,936.10 | BMD 7,030.50 |
| Switzerland | 8,831,899 | CHF 6,652.00 (US$ 7,449.30) | 114.2 | CHF 1,468.90 | CHF 5,360.60 |
| Cayman Islands | 67,882 | KYD 3,241.67 (US$ 3,906.65) | 103.4 | Not indicated | Not indicated |
| Bahamas | 403,760 | BSD 3,900.00 (US$ 3,898.00) | 90.9 | BSD 1,301.50 | BSD 4,572.80 |
| Barbados | 288,360 | BBD 3,368.33 (US$ 1,675.53) | 88.8 | BBD 2,269.40 | BBD 8,304.50 |
| Norway | 5,539,981 | NOK 50,550.00 (US$ 4,794.29) | 88.6 | NOK 11,947.70 | NOK 42,481.80 |
| Singapore | 5,979,222 | SGD 5,783.00 (US$ 4,328.45) | 85.9 | SGD 1,519.10 | SGD 5,457.30 |
| Iceland | 387,758 | ISK 770,385.00 (US$ 5,652.54) | 83.3 | ISK 165,191.10 | ISK 608,596.50 |
| Jersey | 102,785 | GBP 5,150.00 (US$ 1,523.33) | 80.0 | GBP 927.50 | GBP 3,296.50 |
| Denmark | 5,849,313 | DKK 45,904.00 (US$ 6,790.95) | 78.6 | DKK 7,510.00 | DKK 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.
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.
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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