South Africa is the cheapest country in the world to live.
It is general financial knowledge that if you are coming from a country whose currency has a higher purchasing power, you would have a sense if a cheaper cost of living. In other worlds, when the purchasing power parity of a country is high, more goods are affordable but when low, fewer goods are obtainable.
Of the 50 cheapest countries of the world to live in, only 9 African countries featured – Kenya at 50th position; Uganda at 38, Morocco at 29th’ Algeria at 25th; Zambia at 18h,South Africa at 9th; Tunisia at 8th, Egypt at 6th position and at the top spot, Libya, the land of possibilities.
So if you are confused about where to spend your retirement time or where to relocate to, South Africa has got you covered. Perhaps this is an addition to the boom in the African nation’s tourism.
South Africa is ranked as the cheapest country in the world to live and retire, according to a new report, citing dollar strength against many global currencies.
GoBankingRates generated the rankings based on cost of living indices sourced from online pricing database Numbeo: Cost of Living. This study surveyed cost indicators for major cities in the 112 nations for which Numbeo had recent and accurate data, using the median cost indicators of the cities to generate a typical cost index for the country.
The four key affordability metrics are:
Local purchasing power index: Measures the relative purchasing power of a typical salary in that country, compared to New York City. A lower purchasing power buys fewer goods, while a higher purchasing power buys more
Rent index: Compares typical rental prices in the country to New York City
Groceries index: Compares typical grocery prices in the country to New York City
Consumer price index: Compares costs of local goods and services — including restaurants, groceries, transportation and utilities — to New York City
When South Africa’s prices and cost of living is compared to those in New York, the study found:
Local purchasing power is 26.9% higher Rent is 87.5% cheaper Groceries are 71% cheaper Local goods and services are 65.8% cheaper
“South Africa is the cheapest country to live or retire,” GoBankingRates concludes. “It’s also the world’s largest producer of platinum, gold and chromium, which goes far to enrich the country and its economy.
“This resulted in a local purchasing power that’s significantly higher than what New Yorkers face, which is the most favorable factor that puts South Africa at No1.
“Along with a higher local purchasing power, South Africa also offers lower prices on consumer goods and groceries, and rent costs that are typical of the 50 cheapest countries.
In the major city of Cape Town, GoBankingRates found that monthly expenses total just under R6 200 (from $400 at R15.31/$1) while the average rent costs, for a one-bedroom in Durban for example, are around R4 200 (from $280) a month, the report said.
The second cheapest country, India has a local purchasing power of 20.9% lower than New York, while rent is 95.2% cheaper, groceries are 74.4% cheaper, and local goods and services are 74.9% cheaper.
The most expensive country, on the other hand, is Bermuda.
Top 10 cheapest countries to live and retire are:
South Africa India Kosovo Saudi Arabia Kazakhstan Zambia Oman Paraguay Czech Republic Macedonia