Where are the cheapest countries to live in 2016?

New research reveals the most affordable places to live in the world.

Ever wondered where you live a good life for a lot less?

The 2016 global cost of living index report, collated by Numbeo, has found the cheapest countries in the world to live in according to people who actually live there. It crunched the cost of food shopping, dining out in a restaurant, rent and local purchasing power.

The final table compares the Consumer Price Index (CPI) of each country with New York City, whose CPI sits at 100, a benchmark which is pretty useful even if you’re in the UK.

Let's take a look at the 30 cheapest countries from the list (we’ve omitted obvious war zones).

30th – Peru

This South American nation sits in 30th position on the list. Despite its growing economy and an increase in foreign investment the country’s CPI has fallen from 41.88 in 2015 to 38.04 – or just over 38% of the cost of living in New York City in 2016.

29th – Botswana

One of Africa’s most stable countries, thanks to its low-levels of corruption, it’s also one of the most affordable with a CPI rating of 37.65.

28th – Malaysia

Despite boasting one of south-east Asia’s most vibrant economies, Malaysia is an incredibly affordable place to live with a CPI of just 37.47.

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27th – Bolivia

A country of extremes, Bolivia is home to a mix of wealthy Spaniards and low-income farmers. Rich in minerals and natural gas, South America’s most isolated country is cheap to live in with a CPI of just 37.44.

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26th – Egypt

Egypt has got more expensive, having dropped 13 places since 2015’s list. Although the cost of living has risen, it still remains a very affordable country with a CPI of 36.71.

25th – Bulgaria

Despite a long and slow transition from communist country to a member of the EU, Bulgaria is now a democracy and is working hard to improve its overall standard of living. The country has a CPI of 36.36 which has risen slightly since 2015.

24th – Indonesia

Spread across thousands of islands between Australia and Asia, Indonesia is a popular tourist spot. With a CPI of 36.33 the country is also the fifth cheapest nation to dine out in.

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23rd – Morocco

Wedged between the Atlantic Ocean and Mediterranean Sea, Morocco is a blend of Arab, Berber, European and African culture. It’s also a very affordable country to live in, with a CPI of 35.56.

22nd – Bangladesh

While it remains one of the world’s most densely populated countries, in recent years Bangladesh has seen a reduction in population growth and improved health and education. However, it’s still a cheap place to live, with a CPI of 35.5. It’s the third cheapest country to rent a home in too.

21st – Armenia

Boarded by Turkey and Georgia, Armenia comes in just short of the top 20. Its CPI is even lower than 2015, down 2.81 to 35.49. 

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20th – Mexico

With a CPI of 35.01, Mexico is home to the second largest economy in Latin American and is a major exporter of oil.

19th – Romania

The largest of the Balkan countries, Romania’s cost of living has decreased since 2015’s report (36.86) and it now has a CPI of 34.80.

18th – South Africa

With one of the continent’s largest and most developed economies, South Africa has established itself as a desirable place to live thanks to its low cost of living. Its current CPI sits at 34.75, down a massive 8.75 points from 2015.

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17th – Philippines

The Philippines’s fast-growing population is spread over 7,000 islands, although the majority of people reside on just 11 of them.  The nation’s cost of living has dropped since 2015 (36.05) and it now has a CPI of 34.73.

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16th – Bosnia and Herzegovina

Bosnia and Herzegovina is one of the cheapest countries in the world to rent a home in, coming in fourth place overall. Its overall cost of living is also low, with a CPI of 34.59.

15th - Sri Lanka

Located off the southern tip of India, the tropical island of Sri Lanka is not only beautiful to look at but cheap to live according to Numbeo’s report. Here the cost of living sits at just 34.11.

14th – Albania

Situated along the Adriatic Sea, Albania boasts a long and beautiful coastline. Despite previous debt and inflation problems, the country is transforming into a market economy. The current cost of living sits at 33.81.

13th – Serbia

The landlocked nation only achieved independence in 2006 and sadly has long been mired by economic crisis. As a result, Serbia continues to be one of the cheapest places to live in the world. The current cost of living is just 33.56, falling since the 2015 index (35.42).

12th – Macedonia

Since gaining independence in 1991, Macedonia has seen steady economic growth. With a CPI of 31.06 it is also the fifth cheapest country in the world to rent a home in. 

11th – Tunisia

Located by the Mediterranean Sea, Tunisia’s economy is stronger than that of its neighbours, thanks to tourism and agriculture which employs a large part of the workforce, although its tourist industry is now under threat from terrorism. The country’s CPI sits at 30.67, and it’s also the fourth cheapest country to dine out in.

10th – Colombia

Despite previously making headlines for violence, since 2002 Colombia has been making significant progress towards improving security. With a CPI rating of 29.25, it’s one of the most affordable countries to buy groceries in.

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9th – Azerbaijan

The once struggling nation has revived itself over the past two decades thanks to strong oil resources and signing deals with international energy producers. With a CPI of 28.93, Azerbaijan is the fourth cheapest country to buy your food shopping in.

8th – Algeria

The gateway between Africa and Europe, Algeria’s economy largely relies on exporting natural gas and energy to Europe. The cost of living here remains extremely low at an index of just 28.89.

7th – Georgia

Since 2015’s index, Georgia has become an even cheaper place to live. Down 1.66 points from last year, the current cost of living here is an incredible 28.71. It’s also the fifth most affordable country to buy groceries in.

6th – Ukraine

Ukraine is home to Europe’s second largest country, and has a strong agriculture sector. Despite this, it remains one of the world’s most affordable nations to live in, with a CPI of 28.71. It’s also the third cheapest country to buy groceries in, and has a high level of local purchasing power.

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5th – Nepal

Coming in fifth place on the list, Nepal is a very inexpensive place. With a CPI of just 27.34, it’s the cheapest country in the world to eat out in and the most affordable country to rent a home in.

4th – Kazakhstan

Since gaining independence in 1991, major investment in the country’s oil sector has brought rapid economic growth. However, Kazakhstan remains one of the world’s most affordable nations to live with a CPI of 26.82.

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3rd – Pakistan

Pakistan is second only to Nepal as the cheapest nation to rent a home in. Its overall cost of living sits at 26.69.

2nd – Moldova

Coming in second place is Moldova. With a CPI of just 25.70, Moldova is the cheapest country for your weekly shop.

1st – India

For the seventh consecutive year, India has been named the world’s cheapest country to live in. With a CPI of 24.14, (24.14% of the cost of living in New York City) it has low rent costs, it’s cheap to buy food and it’s the second cheapest place in the world to eat out in.

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Would you want to live in any of these countries? Share your thoughts in the Comments below.

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