In this piece, we will take a look at the 30 cheapest countries in the world in 2024. If you want to skip our discussion of how the post pandemic era has upended global costs of living, then you can check out 5 Cheapest Countries in the World in 2024.
The dynamics of the global economy and the differences in the standard of living between countries mean that the cost of living is not uniform across countries. Developed countries like the US and UK enjoy higher living standards and robust economies which lend them stronger currencies. When these currencies are converted into those of developing or under developed countries, even a meager salary in the developed countries can enable one to live quite comfortably in others.
However, even though citizens of developed countries enjoy better living standards, global economic shocks often mean that people in every country feel the inflationary pinch. This was clear during the coronavirus pandemic and the Russian invasion of Ukraine. 2022 was one of the most calamitous years for the global economy, as populations worldwide suffered from the twin inflationary impacts of the loose monetary policies of the coronavirus pandemic and the Russian invasion. Data from the International Monetary Fund (IMF) compiled in September 2022 shows just how serious the cost of living crisis became as a result. It reveals that sub saharan Africa, one of the poorest regions in the world, was also hit the hardest. This is despite the fact that in US dollar terms, most African nations are among the cheapest in the world.
According to the IMF, staple food inflation in Africa surged by 24% between 2020 and 2022 due to the region’s excessive reliance on imports. 2022 was a great year for the US dollar too as the Federal Reserve hiked interest rates to tame inflation. This decision is also criticized as America exporting its inflation to the world as a stronger dollar makes imports expensive for other countries. This was the case in Africa too, with the IMF estimating that a percent of depreciation of a local currency leads to the prices of imported staples jumping by 0.3%. The weaker currency and higher fertilizer costs also led to prices of items such as cassavas jumping by 78% in Ghana, and prices for maize and Cassava doubling in Nigeria. This is despite the fact that both items are locally produced. Africa’s troubles in 2022 were an extension of the turmoil in 2021, which had seen inflation in Sudan touch an unbelievable 359% in 2021. Yet, even though prices surged, most of the cheapest countries in the world in our list today are still African nations.
While they weren’t affected as strongly as their African peers, developed countries have also borne some of the brunt. The sharpest example is the UK, which is one of the few consumption driven developed economies that relies on imports. Britain’s consumer price index inflation jumped to 11% in October 2022, and while it has dropped to 2.2% since then, core CPI, which excludes volatile items is still 3.6% after having peaked at 7.1% in May 2023. These seismic shifts for a developed country have hit the poorest the hardest. Data from the UK’s largest food bank operator shows that it distributed 3 million emergency food parcels in 2023 to set a new record. Within this figure were 300,000 people who had relied on a food bank for the first time. Safe to say, Britain isn’t anywhere close to ranking in the 25 cheapest countries in the world.
Moving closer to home, the after effects of the pandemic and geopolitical conflicts are felt the hardest by the youngest Americans. Acorns Money Matters Report released in 2024 outlined that Gen Z and Millennials are three times more likely to fear homelessness when compared to older Americans. Specifically, 33% of Millennials believe that they cannot enjoy life because of financial worries, which is seven percentage points higher than the average. A roughly similar amount or 35% of those surveyed believed that they would be financially better off next year, and for 31%, the cost of living was their biggest concern with inflation coming in at second place with 37%. Their worries about homelessness and cost of living are unsurprising as well, since 653,100 people were homeless in America in 2023, which marked a strong 12% annual growth.
Shifting gears, while the cost of living pressures that have made the Western world rank low when it comes to the cheapest countries in the world aren’t well received by the general populace, they allow some firms, particularly those that sell consumer staples, to grow their revenue through pricing power. One such firm that has benefited from the higher prices of the past few years is Colgate-Palmolive Company (NYSE:CL). Colgate has consistently grown its revenue over its four last quarters and fiscal years. The firm earned $4.7 billion, $4.8 billion, $4.92 billion, $4.95 billion, $5.1 billion, and $5.1 billion in revenue during its six latest quarters, respectively.
READ ALSO: 30 Cheapest Places To Live In The US in 2024 and World’s 20 Most Expensive Countries To Live In 2024.
During fiscal years 2020, 2021, 2022, and 2023, its revenue was $16.4 billion, $17.4 billion, 17.9 billion, and $19.4 billion. During Colgate-Palmolive Company (NYSE:CL)’s first quarter of 2024 earnings call, management was eager to stress that this growth was driven by both inflationary and non inflationary pricing (one that isn’t directly influenced by a higher cost of materials). There is some numerical evidence to back these claims as well, since Colgate-Palmolive Company (NYSE:CL)’s trailing twelve month gross margin currently sits at 59.7%, courtesy of $19.9 billion revenue and $11.9 billion of gross profit. When compared to its larger rival in the industry, which has a 51% gross margin, Colgate-Palmolive Company (NYSE:CL) has managed the inflationary environment well to the advantage of its shareholders.
On the topic of pricing, Colgate-Palmolive Company (NYSE:CL)’s management expects pricing to contribute less to its growth as it relies on volume for growth. According to CEO Noel Wallace:
“Yes, well listen, we know the market’s been focused on getting back to volume growth, but we’ve consistently talked about, and I talked about it certainly at Deutsche Bank in Paris, on the importance of that growth being balanced, that we were going to continue to focus on the strong revenue growth management principles we have in place, the price pack architecture work that we’re doing, and the necessity to continue to get pricing in the P&L. Now, as the inflationary environment becomes more benign, obviously we’ll see some foreign exchange transactional pricing that needs to go into the P&L, but we’re going to continue to be very focused on finding ways to drive some balanced pricing through the P&L, and we think we’ll continue to see that obviously in the back half of the year across most of our divisions.
As I mentioned earlier, our revenue growth management capabilities are very, very strong right now, and that’s encouraging for us, to find ways where we’re seeing less inflationary pricing, to find ways to optimize category growth from a dollar standpoint. But we’ve talked about it consistently that we would see particularly this year inflect more towards volume than pricing, but that being said, the 4.2% pricing that we generated in the second quarter continues to be very, very strong in the context of the marketplace. I think that talks to the strength of our brands and our need to continue to offset some of the inflationary pressures that we saw in the business. So overall, we’ll see pricing in the second half come–be a little bit lower than where we were in the second quarter, but given the levels of raw material inflation and the benefit of FTG, we still feel good about where we are from a gross profit standpoint.”
However, not all firms benefit from a high price environment. One such firm that has struggled as of late is NIKE, Inc. (NYSE:NKE). Its shares are down 29% year to date as of the end of the first week of July, bringing the P/E ratio to 20. The firm’s revenue had dropped by 2% annually to $12.6 billion in its May quarter, hinting that perhaps it increased prices by too much and bled market share as a result. However, the latter half of the year proved to be great for NIKE, Inc. (NYSE:NKE). After the shares literally sank following the first quarter earnings report, the stock is up 17%. This has come on the back of two noticeable events. The first took place in mid August when Bill Ackman’s Pershing Square reported a $229 million stake in the company through its 13F SEC filings. Following this, the shares soared by 6.8% in late September after CEO John Donahoe retired and was replaced by Elliot Hill who started out at the firm as an intern. The P/E now sits at 24, which is higher than the benchmark S&P’s 21. We covered NIKE, Inc. (NYSE:NKE) in detail as part of our coverage of 10 Best Consumer Cyclical Stocks To Buy Now, which is a list of stocks that might not do well if prices rise too much.
While we acknowledge the potential of NKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
With these details in mind, let’s take a look at the cheapest countries in the world in 2024.
Our Methodology
To make our list of the cheapest countries in the world, we used data from the World Bank’s International Comparison Program (ICP). The ICP data for 2021 was released in May 2024, and we added the per capita figures for 9260000 (Individual consumption expenditures by households, without housing) and 9060000 (Actual housing, water, electricity, gas and other fuels) for all countries covered. Market exchange rate data was used, and out of these, countries with the lowest cost of living were selected. On an added note, all GDP figures are in nominal terms.
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30. Cambodia
Living Costs Per Capita: $1,126
Cambodia is a Southeast Asian country with a $33 billion GDP and a GDP per capita of $2,037. It is one of the most underdeveloped countries in the world, and its economy relies primarily on agricultural production. Rice and maize are some of its most important crops, and tourism and textile production also play an important role in the economy.
29. South Sudan
Living Costs Per Capita: $1,088
South Sudan is a landlocked African country. It has one of the smallest economies in the world, which was worth a mere $4.6 billion in 2022. This lent South Sudan a GDP per capita of $326, which sits right at the bottom of the global ranking. South Sudan is one of the most unstable countries in the world, and its economy has been beset by years of civil war and famine.
28. Sudan
Living Costs Per Capita: $1,087
Sudan is South Sudan’s northern neighbor and the two went their separate ways in 2011. It has a much larger economy though, which was worth $35.5 billion in 2023. Sudan’s GDP per capita is also higher and sat at $533 during the same time period. Its economy suffered after independence due to South Sudan gaining access to the majority of Sudan’s oil fields, and as of 2019, gold and oil seeds account for the bulk of Sudan’s exports.
27. Benin
Living Costs Per Capita: $948
Benin is another African nation. While it has a relatively small GDP of $19.9 billion, a population of just 13.7 million lends it a higher GDP per capita of $1,449. Like several other African nations, and particularly those that are among the cheapest countries in the world, Benin relies on natural resources and agricultural products for most of its exports.
26. Angola
Living Costs Per Capita: $933
Angola has a high GDP per capita of $6,780 when compared to several African countries on our list. This is helped by its sizeable $93 billion GDP, which depends to a large extent on precious diamond and oil exports. However, Angola suffers from high income disparity and low development.
25. Lesotho
Living Costs Per Capita: $928
Lesotho is another mineral rich African nation. It has one of the smallest economies in the world, which was worth $2.3 billion in 2023. Lesotho’s population of 2.2 million makes it one of the least populated countries in the world too. The economy relies on agriculture and diamond mining.
24. Guinea
Living Costs Per Capita: $914
Guinea is a West African nation with a $23.2 billion economy and a GDP per capita of $1,542. A mineral rich country, it relies primarily on aluminum and gold for its exports. Combined, these account for more than 90% of Guinea’s exports, and leave the economy vulnerable to global industrial downturns.
23. Togo
Living Costs Per Capita: $805
Togo is one of the smallest countries in the world in terms of area as it covers a mere 56,785 square kilometers. Another African country, it has a $9.1 billion economy and a GDP per capita of $1,001. Agricultural and mineral products account for a sizeable chunk of its exports, with cotton, coffee, and phosphate playing key roles.
22. Ethiopia
Living Costs Per Capita: $784
Ethiopia is one of the biggest countries in the world in terms of both area and population. However, it has failed to utilize its high population of 129 million since the GDP is a rather low $205 billion for a country its size. Ethiopia’s GDP per capita is $1,910. However, Ethiopia is somewhat developed, with a large portion of the population having access to electricity as it benefits from its sizeable water resources to generate power.
21. Tajikistan
Living Costs Per Capita: $778
Tajikistan is the first and only non African country on our list of the cheapest countries in the world in 2024. Its GDP is $12.9 billion and the GDP per capita is $1,271. Like several countries in its region, such as Pakistan, Tajikistan relies quite a bit on foreign remittances sent by workers abroad to fund its economy. Tajikistan also has to depend on other countries for trade since it is a landlocked country.
20. Uganda
Living Costs Per Capita: $772
Uganda is another landlocked country. While it has a somewhat sizeable economy of $52 billion, a large population of 49 million lends Uganda a GDP per capita of $1,163. When compared to some of its African peers, Uganda also ranks relatively high in human development and income equality. Coffee, oil, and metals account for a large portion of Ugandan exports.
19. Mali
Living Costs Per Capita: $759
Mali is a large African country that covers an area of 1.2 million square kilometers. However, an equally large population of 21.9 million means that its GDP of $21 billion lends Mali a GDP per capita of $912. The country suffers from low levels of human development, and more than 90% of Mali’s exports are of gold.
18. The Gambia
Living Costs Per Capita: $746
The Gambia is one of the smallest countries in the world with an area of just 11,300 square kilometers. It has a GDP of $2.3 billion, and a GDP per capita of $903. Agriculture plays a key role in its economy and accounts for more than a third of its economic output.
17. Guinea-Bissau
Living Costs Per Capita: $726
Guinea-Bissau is a West African country that covers an area of 36,125 square kilometers and has a population of 2 million. It also has one of the smallest GDPs in the world, which is estimated to sit at $2 billion. Guinea-Bissau’s GDP per capita is $1,028, and the country has suffered from political conflict throughout its history.
16. Liberia
Living Costs Per Capita: $693
Liberia is another small African country. It benefits from having a coast with the Atlantic Ocean and has a GDP per capita of $800. The coast has allowed Liberia’s ship registry industry to develop, as companies benefit from its lax labor laws and taxes to register ships under the Liberian flag.
15. Somalia
Living Costs Per Capita: $665
Somalia has a $12.8 billion economy and a GDP per capita of $775. Agriculture dominates the Somali economy and accounts for most of the labor and output. However, when it comes to Africa, Somalia has a robust telecommunications industry that has benefited from partnerships with Western carriers.
14. Rwanda
Living Costs Per Capita: $654
Rwanda is one of the smallest countries in the world with an area of roughly 26,000 square kilometers. However, its population of 13.6 million makes it quite densely populated with a population density of 517 people per kilometer square. Political turmoil has hampered its economy, and to date, Rwanda depends on exports for most of its economic output.
13. Syrian Arab Republic
Living Costs Per Capita: $607
Syria is one of the most war torn regions in the world. It has been suffering from a civil war since 2011, which has decimated its economy and caused it to shrink by more than 60%. War and sanctions have decimated Syria’s key exports of oil and tourism, with some sources claiming that it now relies on illicit drugs to make up for the shortfall.
12. Chad
Living Costs Per Capita: $582
Chad is one of the largest countries in the world in terms of area as it covers 1.3 million square kilometers. It has a GDP of $12.5 billion and a GDP per capita of $702. Natural resources play a key role in Chad’s economy, as more than two thirds of its exports are gold and oil.
11. Burkina Faso
Living Costs Per Capita: $568
Burkina Faso is a landlocked African country with a GDP of $20.7 billion and a GDP per capita of $888. Burkina Faso is one of the most food insecure countries in the world, with millions of children suffering from food insecurity. This is despite the fact that agriculture accounts for almost all of its economic output. Burkina Faso’s exports are dominated by gold and other metals like zinc also play an important role.
10. Sierra Leone
Living Costs Per Capita: $567
Sierra Leone is another small African country in terms of both its area and its economy. It has a $3.5 billion economy, which lends it one of the lowest GDP per capita in the world at $414. Sierra Leone is rich in natural resources, and it depends on diamonds, titanium, and aluminum for its exports.
9. Tanzania
Living Costs Per Capita: $542
Tanzania is one of the least developed countries in the world as it ranks 167th on the human development index. It has a $84 billion economy and a relatively high GDP per capita of $1,326. A large portion of its exports and its economy are dependent on agriculture. However, Tanzania also has a strong energy and mining industry and it exports copious amounts of gold which stood at $3.3 billion in 2023.
8. Malawi
Living Costs Per Capita: $501
Malawi is a landlocked African country with a GDP worth $13.1 billion and a GDP per capita of just $579. While most of its population is part of the agriculture industry, services industries such as tourism, telecommunications, and banking account for most of its economic output.
7. Zambia
Living Costs Per Capita: $470
Zambia has an economy of $29.5 billion and a GDP per capita of $1,435 which places it relatively high on our list of the cheapest countries in the world. The country suffers from high levels of income inequality. Like several of its African peers, it also relies heavily on mineral exports. 48% of Zambia’s exports are copper, which leaves it vulnerable to global industrial slowdowns. Apart from mining, agriculture also plays a key role in the Zambian economy, with tobacco and wheat being some key crops.
6. Niger
Living Costs Per Capita: $451
Niger is a West African country with a $14.5 billion economy and a GDP per capita of $630 – which is one of the lowest in the world. Most of its exports depend on gold, and oil seeds and chemicals also play important roles. Historically, it was also a major uranium exporter, but over time, Niger’s prosperity has dwindled due to a drop in global uranium prices.
5. Central African Republic
Living Costs Per Capita: $409
Central African Republic, or CAR, is one of the least densely populated countries in the world. It has an area of 622,984 square kilometers but a population of 5.5 million lends it a density of just 7.1 people per square kilometer. CAR also has one of the smallest economies in the world, which was worth $2.7 billion and lent it a GDP per capita of $539. Its underdeveloped economy is evident by the fact that food crops dominate the country. Wood is also a major CAR export.
4. Madagascar
Living Costs Per Capita: $401
Madagascar is a coastal country that is one of the largest island nations in the world. It has a $15.7 billion economy and a GDP per capita of $529. As well as being one of the cheapest countries in the world, Madagascar is also one of the poorest countries, and most of its population lives below the poverty line. Agriculture and tourism are key sectors of its economy, and on the latter front, Madagascar benefits from its unique biodiversity and island status.
3. Mozambique
Living Costs Per Capita: $379
Mozambique is a coastal African country that has a $21.9 billion economy. It has a GDP per capita of $647. Despite vast natural resources and natural biodiversity that can expand into a vibrant tourism industry, Mozambique, like its other African peers, has suffered from corruption and conflict which have hampered its economic growth.
2. Democratic Republic of Congo
Living Costs Per Capita: $291
The Democratic Republic of Congo, or DRC, is one of the largest countries in the world in terms of area. It covers an area of 2.3 million square kilometers and also benefits from a sizeable population of 105 million. The DRC has an economy of $67 billion and a GDP per capita of $675. The economy is dependent on mining, and some even believe that the DRC could be the ‘world’s Saudi Arabia’ for the EV revolution due to its vast resources of cobalt.
1. Burundi
Living Costs Per Capita: $267
Burundi is a small African country that covers an area of just 27,834 square kilometers. It is also one of the poorest nations in the world, and a $3.1 billion economy lends it a paltry GDP per capita of $245. Dominated by colonialism throughout its history, Burundi gained independence in 1962. Nearly all Burundians are employed in agriculture, and instead of focusing on cash crops, they produce food crops for their sustenance. Burundi has also often ranked as the world’s poorest country, and its major exports are coffee and tea. Like other underdeveloped countries, Burundi also suffers from large current account deficits. According to the World Bank, while the value of Burundi’s exports is $164 million, its imports are $1 billion.
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Disclosure: None. 30 Cheapest Countries in the World in 2024 was originally published at Insider Monkey. All investment decisions should be made after consulting a qualified professional.