20 Most Expensive Countries in Asia

Published on February 9, 2023 at 7:20 pm by Ty Haqqi in Lists, News

In this article, we will be taking a look at the 20 most expensive countries in Asia. To skip our detailed analysis, you can go directly to see the 5 most expensive countries in Asia.

From the perspective of the U.S. and most Western countries, Asia isn’t really considered to be very expensive, because it is mainly home to developing economies where the cost of living isn’t as high. The biggest continent in the world by land mass and population, being home to more than 4.5 billion people, and some of the most promising economies in the world right now.

2022 has not been a good year for most countries in Asia, thanks to a strengthening dollar in addition to record inflation. In a bit to control inflation, the Federal Reserve in the U.S. aggressively hiked interest rates, which resulted in the dollar strengthening against other currencies to a level not seen in many decades. Since most Asian countries already have currencies which are quite weak against the dollar, 2022 was quite devastating especially since the debt of most of these countries is in foreign denominated currencies. However, there is a chance that emerging markets have cleared most of the hurdles in 2022 as inflation is now decreasing in most countries, while strong growth is continuing to be demonstrated. Lastly, the U.S. dollar is currently weakening slightly though definitely not to pre-2022 levels which has also boosted the economics of Asian nations.

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Based on these metrics, Asian countries and especially emerging markets in particular, could be particularly ripe for investment right now, with equities being underpriced compared to potential gain. While there is still a threat of recession, according to Lazard Asset Management, any challenges in 2023 would be unlikely to be harder than those in 2022. Compare this to the U.S., where most analyst expectations are that growth will either slow down significantly or even decelerate, the manufacturing purchasing managers’ indices indicates that growth for Asian markets will be particularly strong. The continuation of energy rationing by European nations and the longer than anticipated recession in the UK will drag down growth in the continent while Asia is primed for growth, and some of the most expensive countries in Asia may be ripe for investment.

China and India, the two largest countries in the world by population, with India recently overtaking China in this regard, are by far the biggest contributors to Asia’s economy, with both being counted among the top 5 biggest economies in the world. China has suffered in the last two years because of its strict zero-Covid policy which has stifled growth and been severely detrimental to most industries in the country. Recently, China changed its policy and ended most Covid restrictions in what is a major shift in policy and could signal growth in 2023.

To determine the most expensive countries in Asia, we obtained the real GDP and GDP by PPP from the World Bank for each country in the continent. We then filtered these based on the United Nation’s listing of countries in Asia, as for some countries bordering Asia and Europe, this can be a bit uncertain. We calculated the ratio of real GDP to GDP by PPP for each of these countries with a higher ratio denoting a more expensive country. While ratios for some countries might seem similar, that’s because they are rounded off to two decimal places. To see why we used this methodology, please take a look at the 35 most expensive countries in the world. So, without further ado, let’s take a look at the most expensive Asian countries, starting with:

20. Thailand

Real GDP / GDP by PPP ratio: 0.38

5 year GDP growth rate: 11.4%

Because of high inflation, the cost of living in Thailand is continuing to increase while salaries aren’t increasing at the same rate, which is why it features in our list.

19. Bangladesh

Real GDP / GDP by PPP ratio: 0.38

5 year GDP growth rate: 40.7%

Bangladesh has exhibited incredible growth since achieving independence in 1971. While human labor is relatively cheap in Bangladesh, it is still much more expensive than countries nearby including India and Pakistan.

18. Malaysia

Real GDP / GDP by PPP ratio: 0.38

5 year GDP growth rate: 17.1%

If you’re visiting Malaysia from Western European countries or North American countries, you will be shocked to find Malaysia among the most expensive countries in Asia. However, compared to other Asian countries, especially in Southeast Asia, it is quite expensive.

17. Philippines

Real GDP / GDP by PPP ratio: 0.39

5 year GDP growth rate: 18.6%

Despite a population of over 113 million, there is a smaller market for importers which results in lower economies of sale and higher costs.

16. Jordan

Real GDP / GDP by PPP ratio: 0.4

5 year GDP growth rate: 14.8%

Despite not paying high salaries, Joran is among the most expensive countries in the region.

15. Saudi Arabia

Real GDP / GDP by PPP ratio: 0.48

5 year GDP growth rate: 11.8%

Saudi Arabia has earned its riches the good old fashioned way; vast reserves of oil which have given the rulers of the country unlimited wealth. While there is no personal income tax, salaries are quite high as the country can afford to pay top dollar to attract expats which has raised the value of goods and services.

14. Brunei

Real GDP / GDP by PPP ratio: 0.48

5 year GDP growth rate: 13.6%

The Kingdom of Brunei is one of those nations which seems cheap but lucrative employment contracts and tax free income for expats, especially in the oil and gas sector, who constitute over 40% of the country’s total population have resulted in the cost of living increasing in the country.

13. Iraq

Real GDP / GDP by PPP ratio: 0.49

5 year GDP growth rate: 8.4%

Ever since the 2003 Iraq war, the country has faced consistent terrorism and dysfunction, which has negatively impacted its economy. The war, which was started by the United States on the false pretense of the country harboring weapons of mass destruction, a move which cost over $2 trillion. The ramifications are still being felt in Iraq and a struggling economy has seen price increase significantly.

12. Bahrain

Real GDP / GDP by PPP ratio: 0.49

5 year GDP growth rate: 11.4%

Bahrain is home to an ever-increasing number of expats, who earn high salaries and hence, are prepared to more for goods and services which in turn drives up prices. This is one of the primary reasons why Bahrain has gotten more expensive in recent years, while other reasons including consistent inflation. However, it is still cheaper than some other Middle Eastern companies.

11. Timor-Leste

Real GDP / GDP by PPP ratio: 0.50

5 year GDP growth rate: 87.2%

Compared to most Western nations, Timor-Leste isn’t that expensive but that’s because currency exchange rates come into play. For locals, Timor-Leste is still comparably expensive. Even now, goods and services in the country are more expensive as compared to other ASEAN countries due to being a small market with low economies of scale and higher trade costs.

10. Maldives

Real GDP / GDP by PPP ratio: 0.50

5 year GDP growth rate: 20.0%

Tourism is one of the biggest drivers behind the economy of Maldives, which offers both affordable accommodation and really expensive villas which can cost thousands of dollars a month. Most goods in the nation are imported while the cost of real estate is quite high, which makes Maldives among the most expensive countries in Asia.

9. Oman

Real GDP / GDP by PPP ratio: 0.52

5 year GDP growth rate: 9.6%

Oman’s currency is one of the strongest in the world, which is one of the reasons why it is considered so expensive. Like most Middle Eastern companies, there is no income tax in income, which is also a contributor to it being so expensive.

8. United Arab Emirates

Real GDP / GDP by PPP ratio: 0.58

5 year GDP growth rate: 11.2%

The United Arab Emirates was basically a desert less than half a century ago, but the discovery of oil changed the country’s fortunes entirely. Dubai, the crown jewel of the Emirates, is now one of the biggest tourist destinations in the world, and offers a glitzy, glamorous experience which means that the cost of living there is quite high as well. Salaries are generally generous in the country with no income tax, which means that costs are higher too.

7. Singapore

Real GDP / GDP by PPP ratio: 0.62

5 year GDP growth rate: 18.8%

Singapore is considered to be the financial center of the world and is often ranked among the most expensive cities in the world. Higher demand against lower supply has resulted in prices in the country being higher than the average. Rent, which is one of the biggest indicators of how expensive it is to live in a specific country, has continued to surge in Singapore as the lack of availability of land combined with an increasing population is leading to record rental prices.

6. China

Real GDP / GDP by PPP ratio: 0.65

5 year GDP growth rate: 37.3%

The second-biggest economy in the world has suffered over the last couple of years because of its zero-Covid policy, but might register huge growth in 2023 as the government has reversed its course. The growth in labor wages in the country is increasing which is why many major manufacturers are shifting their factories to India, where labor is a lot cheaper. You will note that India is nowhere near the most expensive countries in Asia. A large wealth gap in China is also one of the reasons why it is quite expensive.

Click to continue reading and see the 5 most expensive countries in Asia.