Cost of living and purchasing power related to average income
We ajusted the average cost of living inside the USA (based on 2019) to an index of 100. All other countries are related to this index. Therefore with an index of e.g. 80, the usual expenses in another country are 20% less then inside the United States.
The monthly income (please do not confuse it with a wage or salary) is calculated from the gross national income per capita.
The calculated purchasing power index is again based on a value of 100 for the United States. If it is higher, people can afford more based on the cost of living in relation to income. If it is lower, so the population is less wealthy.The example of Luxembourg:
With a cost of living index of 111 all goods are on average about 11 percent more expensive than in the USA. But the average income in Luxembourg of 5903 USD is also 12% higher, which means that citizens can also afford more goods. Now you calculate the 11% higher costs against the 12% higher income. In the result, people in Luxembourg can still afford about 1 times more than a US citizen.
|Platz||Country||Cost of living index||Ø Monthly income||Purchasing power index|
|1||Cayman Islands||195.0||3,928 USD||38.3|
|5||Virgin Islands||133.8||1,161 USD||16.5|
|13||Hong Kong||107.7||4,192 USD||73.9|
|16||New Zealand||106.0||3,418 USD||61.3|
|19||United Kingdom||101.3||3,483 USD||65.3|
|21||United States||100.0||5,264 USD||100.0|
|26||South Korea||95.0||2,552 USD||51.0|
|31||United Arab Emirates||86.4||3,407 USD||74.9|
|33||Costa Rica||75.0||960 USD||24.3|
|39||Saudi Arabia||66.8||1,800 USD||51.2|
|45||Dominican Republic||62.1||647 USD||19.8|
|47||South Africa||59.6||479 USD||15.3|
|69||Bosnia and Herzegovina||47.5||478 USD||19.1|
|77||Sri Lanka||44.5||338 USD||14.5|
|81||North Macedonia||43.0||454 USD||20.1|
The calculated cost of living index is based on the OECD
, the IMF
figures and has been completed with consumer information of Numbeo
as well as own researches. It does not take into account the differences between poverty and wealth, as well as prices for goods that do not belong to normal needs. Therefore this list should be regarded as a mathematical theorem. Whether it is realistic to survive with a purchasing power index of 2.3 (Uganda) does not matter in this table. This would correspond to about one-43th of the purchasing power inside the US.
Quality of life in relation to cost of living
In the search for a potential adopted country, the cost of living usually has the highest priority. However, other factors such as medical care or political stability should also be taken into account. In a further evaluation we compare numerous factors of different countries in order to derive a ranking for the quality of life
There are some other indices, e.g. the study of the swiss bank UBS
issued about every 3 years or of the EDA
(Federal Departement of Foreign Affairs). Both studies refer only to some few and usually large cities in which UBS and Switzerland have a representation.