Standard of Living

The standard of living basically refers to the amount and quality of goods and services available to the residents of a country. This is measured using income, Gross Domestic Product (GDP), life expectancy and economic opportunity. For the purpose of this post, we are looking at the income component (using real minimum wage) and comparing it with the local purchasing power index. The local purchasing power index (LPPI) shows the relative purchasing power in buying goods and services in a location (city or country) given the average net salary in that location. In arriving at the LPPI for a country, we found the average of the available LPPIs for the different cities in that country.

Data used in this infographic was gotten from OECD , #Numbeo and #TradingEconomics . The data reveals that the highest real minimum wage ($2.7k) and LPPI (71.2) in Africa are recorded in South Africa while the lowest among the evaluated countries was Nigeria with an LPPI of 10.6 and real minimum wage of $0.9k. The highest LPPI of 111.3 was in the United States while the highest minimum wage among the countries evaluated was Australia with $24.5k. The implication of Nigeria’s LPPI is that someone earning the average net salary in Nigeria can only afford 9.6% of what someone earning the average salary in the US can afford.

What do you think of the stats? Rep your country with your country’s flag in the comment section 👇🏿