15 Cheapest Countries To Live in Asia
In this article, we will discuss the 15 cheapest countries to live in Asia. If you want to skip our discussion on the developments in the Asian economy, you can go directly to the 5 Cheapest Countries To Live in Asia.
Asia, with its substantial population, presents significant potential for economic growth. The Asia-Pacific region continues to play an important role in driving global growth, even amid challenges posed by shifting global demand from goods to services and the implementation of stricter monetary policies. According to the International Monetary Fund's Regional Economic Outlook report released in October 2023, the region is anticipated to experience a growth of 4.6% in 2023, marking an increase from 3.9% in 2022. However, the region’s growth is predicted to slow to 4.2% in 2024 and 3.9% in the medium term.
While there has been a notable rise in inflation within the Asian-Pacific region in the recent past, the average inflation rate has still been comparatively lower than in other regions. There is also significant variation across countries, with some nations recording historically high inflation and others witnessing markedly lower rates. On average, the rise in food, fuel, and transportation prices contributed to almost two percentage points out of the 4.5% inflation observed in the region in 2022. Notably, fuel costs saw a smaller increase in Asian emerging markets. Meanwhile, in the developed economies of Australia, Korea, New Zealand, and Singapore, inflation trends aligned with patterns seen in the United States and the euro belt. Initially, there was a dip in headline consumer price index (CPI) inflation during the early stages of the pandemic, followed by a steady increase. The inflation cycle was influenced by movements in the producer price index and imported inflation.
Shifting Economic Dynamics
While Asia is widely recognized for its dense population, it is also home to some of the world's fastest-growing economies. Surprisingly, there are numerous countries in the region where the cost of living is so affordable that individuals from the United States can comfortably reside without needing a very high income. This unique combination of a low cost of living and a high quality of life is evident in several Asian countries. China has been a dominant force in Asia with its strong economic growth rates. However, with China's growth slowing down, India is well-positioned to emerge as the next booming economy in the region. Projections indicate that India's GDP growth for the year ending in March 2024 is expected to reach 6.4%, surpassing the initial forecast of 6%. In contrast, China's GDP growth is estimated to be 5.4% in 2023, with a further decline to 4.6% in 2024, placing India ahead in growth rates. However, the diversity of Asia extends beyond these giants and includes countries such as Vietnam, Indonesia, Bangladesh, Malaysia, and Kazakhstan. These nations are also notable for their economic growth and promising long-term GDP growth rates. For instance, according to the IMF's projections, the real GDP growth rate for 2023 varies across these countries, with rates like 4.4% for Kazakhstan, China, and Malaysia, 5% for the Philippines, Indonesia, Mongolia, and Nepal, and 6.2% for Vietnam and Cambodia. You can read more about the 15 Fastest Growing Countries in Asia here.
The growth of economies in Asia can largely be attributed to the strong performance of notable companies like Saudi Arabian Oil Co (TADAWUL:2222), Samsung Electronics Co Ltd (KRX:005930), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) operating within the region. These companies provide significant job opportunities and help improve the overall economic outlook. Here’s what Wedgewood Partners said about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q3 2023 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance, as revenues declined 10% from a year ago. The Company is lapping revenue growth of over +40% (compared to 2022) during every quarter of 2023, so it is more instructive to look at the health of the business through the lens of a multi-year timeframe. Most of the Company’s customers have seen near-term weakness in demand due to pandemic normalization. However, we think the longer-term trend of more silicon per device is still very much intact, and the Company is well-positioned to serve this, given its commanding market share in leading edge capacity. The Company’s aggressive investment in leading-edge equipment combined with tight development with fabless IC designers, plus the embrace of open development libraries, should continue to foster a superior competitive position and attractive long-term growth.”
Pixabay/Public domain
Our Methodology
To determine the 15 cheapest countries to live in Asia, we used data from sources like WiseVoter and LivingCost. The cost of living has been computed by considering prices for utilities, food, rent, transportation, and various other living expenses in each country. These factors collectively constitute a consumer basket, assuming a moderate lifestyle and average consumption. The cheapest countries to live in Asia have been ranked in ascending order of their monthly cost of living in US dollars as of 2023.
Cheapest Countries to Live in Asia
15. Malaysia
Monthly Cost of Living: $574
Malaysia is a relatively small country with a rapidly growing economy. This predominantly Muslim country is home to more than 30 million people, with the majority residing in or near the capital city of Kuala Lumpur. Malaysia’s GDP grew by 3.3% year-on-year in Q3 2023. This surpassed analysts' expectations for a 3% expansion, marking a recovery from the second quarter's growth rate of 2.9%.
14. Indonesia
Monthly Cost of Living: $564
Indonesia is known as the world's largest archipelagic state. It is a predominantly Muslim country. Some of the country's main exports include natural gas, crude petroleum, coffee, and palm oil. With a population of 276 million, the cost of living in Indonesia is 4.04 times lower than in the United States.
13. Uzbekistan
Monthly Cost of Living: $525
Uzbekistan is a landlocked country in Central Asia. With substantial mineral, oil, and gas reserves, Uzbekistan is known for its orchards and vineyards and is famous for Karakul sheep and silkworms. Uzbekistan’s real GDP experienced a growth of 5.6% in the first half of 2023, driven by remittances, exports, and consumption. Furthermore, total exports and non-gold exports saw significant increases of 16% and 12.5%, respectively, during the same period.
12. Azerbaijan
Monthly Cost of Living: $522
Azerbaijan is a small nation located in the Caucasus region, straddling Europe and Asia. The country's economy is largely dependent on the export of oil and various energy commodities. Azerbaijan has secured the twelfth position on our list of the 15 cheapest countries to live in Asia.
11. Bhutan
Monthly Cost of Living: $498
Bhutan is a landlocked country in South Central Asia. The Bhutanese economy is mainly agrarian. The country's GDP is predicted to grow by 4.4% in 2024, while inflation is expected to reach 5.1%.
10. Tajikistan
Monthly Cost of Living: $491
Tajikistan is located in Central Asia. It is renowned for its mountainous terrain and boasts a well-established hiking and mountaineering tourism sector. In the last 10 years, Tajikistan has demonstrated strong economic performance, maintaining an average growth rate of over 7.1%. The combination of this strong economic performance and increased wages has played a significant role in reducing poverty in the country. The poverty rate has seen a sharp decline, dropping from 32% of the population in 2009 to around 12.4% in 2022. The government is targeting an increase of 2 to 3.5 times in domestic income by 2030.
9. Kazakhstan
Monthly Cost of Living: $475
Kazakhstan has substantial reserves of fossil fuels and other valuable minerals and metals, including uranium, for which it holds the title of the world's largest producer as of 2022. In the first half of 2023, Kazakhstan’s economy observed a growth rate of 5.1%. The increase in Russian migrants contributed to a strengthening of domestic demand, which led to a rise of over 20% year-on-year in new business registrations as of June 2023.
8. Bangladesh
Monthly Cost of Living: $448
Bangladesh is a densely populated South Asian nation that stands out as one of the fastest-growing economies in the region. The country is known for its notable achievements in textiles and garments.
7. Kyrgyzstan
Monthly Cost of Living: $441
Kyrgyzstan has noteworthy mineral reserves, particularly nonferrous metals such as antimony and mercury ores. The country’s current account deficit is expected to be approximately 29% of GDP in 2023, with a slight narrowing anticipated over the next year. The improvement is predicted due to better external demand for non-gold goods and an expected increase in the export of services.
6. Turkey
Monthly Cost of Living: $428
Turkey has a unique position as a country that overlaps both Asia and Europe. It is a popular tourist destination due to its varied geographical terrain, which includes mountains as well as a coastline along the Black Sea, the Aegean, and the Mediterranean. In Q3 2023, Turkey's economy exceeded expectations and expanded by 5.9%. The growth was primarily fueled by household spending. However, the pace of economic activity is expected to decrease due to monetary tightening measures aimed at lowering domestic demand and high inflation.
Overall, the expansion of economies in Asia can be attributed not only to government policies but also to the strong performance of popular companies like Saudi Arabian Oil Co (TADAWUL:2222), Samsung Electronics Co Ltd (KRX:005930), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) operating within the region.
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Disclosure: None. 15 Cheapest Countries To Live in Asia is originally published on Insider Monkey.