The country’s economy depends on a group of factors, including the cost of living. The low cost of living is essential for the economic stability of any country, because it directly affects the standard of living, the purchasing power of consumers, and investment opportunities.
In short, the low cost of living helps create a positive economic growth cycle, whereby increased demand leads to increased production and employment, and this ultimately leads to economic growth.
A lower cost of living can also help attract foreign investment, which is one of the main reasons why progressive countries aspire to make living and working conditions conducive in their country. Companies are always looking for cost-effective locations for investment, and the low cost of living can make the country an attractive destination for foreign investors. It can help reduce operational costs for businesses, making it easier for them to set up and manage their operations in the country.
The importance of a low cost of living to a country’s economy cannot be overstated because it is fundamental to reducing poverty and inequality. Numbeo, one of the most popular data and research platforms in the world, revealed the 10 African countries with the lowest cost of living.
The Numbeo General Index is determined by the following factors: the Cost of Living Index excluding rent which is a relative index of consumer prices, including groceries, restaurants, transportation, utilities, rent index, grocery index, and restaurant index.
Adapted from Business Insider Africa