COST OF LIVING BY COUNTRY


COST OF LIVING - THE PPP CONVERSION FACTOR


The World Bank adjusts GDP figures to global differences in price levels in order to better compare the national output of countries. The adjustment of GDP to local prices requires the use of the so-called "PPP Conversion Factor to Market Exchange Rate Ratio".


It sounds more complicated than it is: Let's use an example!

Australia's PPP conversion factor is 1.53. This means that US$1 of goods and services bought in the US cost US$1.53 in Australia. .

In other words, consuming the same products, it is 53% more expensive to live in Australia than in the US.

Conversely, China has a PPP conversion factor of 0.53, meaning that US$1 of goods and services bought in the US cost US$0.56 in China.

The PPP conversion factor measures the cost of all goods and services produced in an economy and thus represents a



better measurement of the cost of living in a country than the price comparison of individual goods (e.g. through the Big Mac Index) baskets of goods.

INTERACTIVE MAP OF COUNTRIES BY COST OF LIVING


Dark Blue = Lower Cost of Living
IMPORTANT: Please note that the cost of living scores used on this page are different to those shown on the individual country profile pages and index page. Below scores represent the original figures from the World Bank, ranging from 0.28 to 1.53, where 1.53 represents the highest cost of living. The scores on the country pages and index page however have been converted to fit an inverted 0-1 scale, where 0 represents the highest cost of living.
COST OF LIVING/PURCHASING POWER
RANKING COUNTRY PURCHASING POWER (Lower Value = Higher Purchasing Power)
1 Pakistan 0.28
2 India 0.29
3 Egypt 0.3
4 Bangladesh 0.31
5 Bhutan 0.31
6 Laos 0.32
7 Gambia 0.32
8 Nepal 0.32
9 Madagascar 0.32
10 Cuba 0.32
11 Sri Lanka 0.32
12 Cambodia 0.33
13 Myanmar 0.33
14 Burundi 0.33
15 Vietnam 0.35
16 Malawi 0.36
17 Afghanistan 0.36
18 Uzbekistan 0.36
19 Tanzania 0.36
20 Ethiopia 0.37
21 Yemen 0.37
22 Mauritania 0.37
23 Macedonia 0.39
24 Belarus 0.39
25 Tunisia 0.39
26 Sierra Leone 0.39
27 Indonesia 0.39
28 Thailand 0.4
29 Guinea 0.4
30 Kyrgistan 0.4
31 Tajikistan 0.4
32 Nicaragua 0.41
33 Uganda 0.41
34 Algeria 0.41
35 Morocco 0.41
36 Guinea Bissau 0.42
37 Burkina Faso 0.42
38 Eritrea 0.42
39 Kosovo 0.42
40 Philipines 0.42
41 Albania 0.43
42 Jordan 0.43
43 Mali 0.43
44 Ghana 0.43
45 Bulgaria 0.43
46 Mongolia 0.44
47 Benin 0.44
48 Togo 0.44
49 Niger 0.44
50 Kenya 0.44
51 Serbia 0.44
52 Rwanda 0.44
53 Azerbaijan 0.44
54 Ivory Coast 0.45
55 Bolivia 0.45
56 Iraq 0.45
57 Cameroon 0.45
58 Armenia 0.45
59 Ukraine 0.46
60 Iran 0.46
61 Sudan 0.46
62 Senegal 0.46
63 Romania 0.47
64 Malaysia 0.47
65 Guatemala 0.47
66 Zambia 0.48
67 Haiti 0.48
68 Moldova 0.48
69 Bosnia and Herzegovina 0.49
70 Sao Tome and Principe 0.49
71 Saudi Arabia 0.49
72 Montenegro 0.49
73 Nigeria 0.49
74 Central African Republic 0.49
75 Botswana 0.49
76 Mauritius 0.49
77 Lesotho 0.5
78 Oman 0.5
79 El Salvador 0.5
80 Swaziland 0.51
81 Chad 0.51
82 Dominican Republic 0.51
83 Georgia 0.52
84 Honduras 0.52
85 South Sudan 0.52
86 Paraguay 0.52
87 Liberia 0.52
88 Zimbabwe 0.52
89 Djibouti 0.53
90 Turkmenistan 0.54
91 Ecuador 0.54
92 Seychelles 0.54
93 Comoros 0.55
94 Congo 0.55
95 Kazakhstan 0.55
96 Hungary 0.55
97 China 0.56
98 Taiwan 0.56
99 Poland 0.56
100 Bahrain 0.56
101 Panama 0.56
102 Brunei 0.57
103 Democratic Republic of Congo 0.57
104 Mozambique 0.57
105 Maldives 0.57
106 Belize 0.57
107 Turkey 0.57
108 Cape Verde 0.58
109 Peru 0.58
110 Lebanon 0.58
111 Syria 0.58
112 East Timor 0.58
113 Fiji 0.58
114 Guyana 0.58
115 Lithuania 0.58
116 Trinidad and Tobago 0.59
117 Mexico 0.59
118 Russia 0.6
119 South Africa 0.6
120 Macau 0.61
121 Grenada 0.61
122 Suriname 0.61
123 Gabon 0.61
124 Namibia 0.62
125 St. Vincent and the Grenadines 0.62
126 Equatorial Guinea 0.63
127 Antigua and Barbuda 0.63
128 Jamaica 0.64
129 Latvia 0.64
130 Colombia 0.65
131 Slovakia 0.65
132 St. Lucia 0.66
133 Kuwait 0.66
134 Croatia 0.66
135 Qatar 0.66
136 St. Kitts and Nevis 0.67
137 Czech Republic 0.68
138 Dominica 0.68
139 Estonia 0.69
140 Costa Rica 0.7
141 Venezuela 0.71
142 Singapore 0.72
143 United Arab Emirates 0.72
144 Hong Kong 0.72
145 Malta 0.72
146 Chile 0.72
147 Samoa 0.72
148 Angola 0.73
149 Palau 0.75
150 South Korea 0.75
151 Slovenia 0.77
152 Portugal 0.78
153 Argentina 0.78
154 Brazil 0.78
155 Uruguay 0.8
156 Cyprus 0.85
157 Tonga 0.86
158 Greece 0.86
159 Spain 0.88
160 Papua New Guinea 0.9
161 Micronesia 0.9
162 Solomon Islands 0.92
163 Bahamas 0.95
164 Barbados 0.96
165 Kiribati 0.96
166 Marshall Islands 0.97
167 Italy 0.97
168 Germany 1
169 United States 1
170 Israel 1.04
171 Ireland 1.05
172 Netherlands 1.06
173 Austria 1.06
174 Belgium 1.07
175 France 1.08
176 Vanuatu 1.08
177 Iceland 1.08
178 United Kingdom 1.09
179 Tuvalu 1.14
180 Luxembourg 1.16
181 Finland 1.17
182 New Zealand 1.17
183 Canada 1.24
184 Sweden 1.28
185 Japan 1.31
186 Denmark 1.32
187 Liechtenstein 1.48
188 Switzerland 1.48
189 Norway 1.51
190 Australia 1.53

SOURCES