Which is the cheapest country to live in?

The Conservative Government has failed to “reach everyone” affected by the cost of living crisis, the Secretary of State for Wales admitted on Sunday.

Defending his party’s record, David TC Davies said they had to “be honest” and that the past five years had been “very challenging” economically.

Labour’s Jo Stevens said that their Conservative’s time in office had been characterised by economic “chaos and mismanagement”.

She said whoever wins on Thursday “will inherit the worst economic record since the Second World War”.

The pair were speaking on the BBC’s Politics Wales programme on Sunday morning.

Their comments come days after a new poll of more than 2,000 people in the UK found that 58 per cent of respondents reported feeling “worse off” now than 12 months ago.

Of those polled, 35 per cent said they struggled to save, while 75 per cent were unable to meet their financial goals due to inflation and the rising cost of living.

And four in 10 respondents said they do not have funds to cover three months of living expenses, with 35 per cent having less than £500 in savings, according to research conducted by financial technology company FIS.

So, where in the world is cheap to live in 2024?

Which is the cheapest country to live in?

Cairo, Egypt - Sept 16th 2022: High Angle view of Downtown Cairo during rush hour with cars in traffic jams on highways as commuters try to get home after work. Scene of dense traffic stood still on bridges in the Egyptian capital. Traffic continues to be a city problem including pollution and climate change.
Downtown Cairo during rush hour. Egypt is ranked as one of the cheapest countries in the world (Photo: Craig Hastings/Getty)

Egypt, Nepal and India are the top three cheapest countries to live in, according to a study by World Population Review.

When it comes to quality of life, however, India ranks 53 out of a possible 83.

Quality of life assessments consider safety, health, cost of living, pollution rates, traffic commute times and property prices.

Egypt ranked 78 out of a possible 83, while Nepal did not feature in the ranking at all.

In Nepal, the average life expectancy is just 66.51 years. The country also suffers with poor literacy rates and low access to sanitation.

And in Egypt, average life expectancy is 72.93 years.

The self-described independent, for-profit organisation analysed demographic data and analysis methodologies used by three organisations – Living Cost, Numbeo and Global Economy – to arrive at their conclusion.

It states that the monthly cost of living in India is $423 (£334), Nepal $439 (£347) and Egypt $449 (£355).

Other countries with a low cost of living include Tunisia, Sri Lanka and Kyrgyzstan.

How is cost of living calculated?

A country’s cost of living is the amount of money required to sustain a certain comfort level in a particular location.

It covers basics such as housing, groceries, taxes and healthcare.

Generally, cost of living calculations rank the cost of various needs, from housing, to health care, to a loaf of bread or a bottle of beer.

These costs are then compared to the price of the same items in a baseline location, such as London or Prague.

Depending on who is doing the recording and how they make their calculations, these figures can vary quite dramatically.

Which are the most expensive countries to live in?

Vik i Myrdal, Southern Iceland. Fields of lupins in bloom and the town church.
Vik i Myrdal in southern Iceland. The country is listed as one of the most expensive in the world (Photo: Marco Bottigelli/Getty)

According to the World Population Review, Iceland and Switzerland are two of the most expensive countries to live in.

The monthly cost of living in Switzerland is $2,497 (£1,974), while Iceland is $2,207 (£1,745).

The World Population Review states that Switzerland has the highest food prices in the European Union (EU).

Iceland’s remoteness and attendant shipping costs, means that consumer goods are much higher than in mainland Europe. “That said, Iceland has many perks to balance out its high cost of living, one of which is consistently ranking as the world’s safest country,” it adds.

It notes that in some countries, the high cost of living is “offset by perks”. It states: “In Norway, for example, these include strong wages, reduced income disparities, and extensive public benefits.”

The UK isn’t far behind at $1,929 (£1,525). Elsewhere, the monthly cost of living in the US is $1,951 (£1,543), France $1,519 (£1,201) and Spain $1,260 (£996.26).

The UK-controlled island territory of Bermuda ranks as the most expensive place to live in two of the three surveys (the third does not track Bermuda).

According to the World Population Review, Bermuda’s capital city of Hamilton is deemed to be one of the most expensive cities in the world, where a 900-square-foot apartment can cost $4,058 (£3,208.60) per month.