Lebanon: The most expensive country to live In, yet among the lowest in income

The rising cost of living and soaring prices of consumer goods pose ongoing challenges worldwide. Yet, in Lebanon, these challenges are compounded by a dramatic collapse in purchasing power, especially for low-income earners, amid a dollarized economy heavily reliant on imports.

Since the onset of Lebanon’s financial and economic crisis in late 2019, Lebanese citizens have lived under a harsh equation: prices approaching those of wealthy nations, but incomes comparable to the poorest countries in the region. This imbalance has left many questioning how families can sustain a livelihood in such a costly environment.

The absence of a clear policy linking wages to inflation rates, coupled with the failure of comprehensive tax reform to ensure social fairness and equitable burden-sharing, has left Lebanon trapped in a paradox, high costs, low income, and widening inequality between aspirations and reality.

Soaring prices, declining incomes

Lebanon now ranks among the world’s most expensive countries. According to Numbeo’s mid-2025 data, Lebanon’s cost-of-living index stands at 40.5, placing it 70th globally, ahead of several Arab nations with larger, more stable economies. Beirut ranks 6th in the Middle East and 168th worldwide for living expenses.

On the other hand, the average annual disposable income per person stands at just $6,144, roughly equivalent to Lebanon’s pre-crisis minimum wage. Meanwhile, the World Food Programme (WFP) reports that a “survival food basket” for a family of five now costs around 44.2 million Lebanese pounds (approximately $492), marking an 8.2% increase since the start of 2025.

Jordan: Lower prices, higher stability

In comparison, Jordan’s overall cost of living is about 18% lower than Lebanon’s, with rent prices nearly two-thirds cheaper. Although wages in Jordan remain modest, the stability of its currency and purchasing power provides citizens with a more balanced standard of living.

Jordan’s minimum wage stands at 260 dinars (about $360), and the average annual income is around 19,000 dinars, or $2,100 per month, more than double that of most Lebanese middle-income earners. Inflation in Jordan remains near 1%, underscoring a more stable economic environment.

Egypt: Much lower living costs

In Egypt, the cost of living is 60–65% lower than in Lebanon, despite high inflation and currency depreciation. The average monthly salary hovers around 14,000 Egyptian pounds (about $280), with a minimum wage near 7,000 pounds. Yet, daily living costs, from housing to food, are significantly more affordable than in Lebanon. The income-to-price ratio in Egypt allows citizens to meet basic needs with less hardship than the average Lebanese household faces.

The Gulf: High prices, but matching incomes

In the Gulf states, particularly the UAE and Saudi Arabia, the cost-of-living ranks among the highest in the Arab world. The UAE leads the region with a 2025 cost-of-living index above 54 points. However, these high costs are offset by proportionally high incomes.

For example, the cost of a meal or hotel stay in Beirut and Dubai may be similar, but when compared to income levels, the difference is stark. A resident of Dubai spends a far smaller portion of their salary on such expenses than someone in Beirut. This pattern applies across the Gulf, as well as in Jordan and Egypt.

Between crisis and recovery

Lebanon’s economic crisis deepens as the cost of living rises far beyond citizens’ purchasing power. Prices now mirror those of high-income nations, while wages remain among the lowest in the region. Essential public services, water, electricity, healthcare, and education, are deteriorating, compounding the burden.

Lebanon’s problem is not a temporary inflationary phase but a structural economic collapse. The country suffers from entrenched monopolies, weak consumer protection, and a lack of structural reforms.

To restore balance, Lebanon needs a national strategy that links wages to inflation, improves the quality and consistency of public services, and enforces price controls to curb monopolies and market abuse. Strengthening regulatory agencies and granting them executive powers would help contain price chaos and safeguard citizens from exploitation.

Such measures would not only ease daily struggles for Lebanese households but could also help revive economic confidence, making Lebanon once again a destination for tourism and investment, and a country where living is no longer a daily battle for survival.