Does this meet the majority’s expectations, or could it be better? Especially since it ranks after its neighbours. LPPI is the most equitable metric as it measures what you can do with your salary rather than how much you make. This is the full ranking of developed countries based on their local purchasing power index, with Norway ranking 14th with an LPPI of 119,5. The LPPI is calculated using the national average salary and the cost of living. So it doesn’t really matter how much you make or the currency as some countries who don’t use USD or EUR have a higher LPPI than euro countries.
Norway ranks 14th among developed countries according to the 2025 LPPI
byu/littleperfectionism inNorway
Posted by littleperfectionism
4 Comments
This is not surprising.
The income level is low in Norway due to tax and welfare contributions. The cost of living is high in Norway, a country that imports almost everything.
lol the UK above Norway. Utterly ridiculous. You can safely discard this bs piece of work.
Average wage skews it very for countries with massive inequality like the US. And cost of living is from Numbeo which is crowd sourced and includes just 3 cities in Norway, no rural places. Average wage is for the entire country though? Also cost of living doesn’t include things like health insurance, other insurances, school costs, college costs, dental, car dependency and a bunch of other costs that you pay in some countries and not in other countries. If it doesn’t account for what you get through taxes and what you directly pay for it’s a useless comparison. International primary school is listed as 150 000 kr a year in Oslo. Is that included for everyone? I know after having lived and worked in the US that I have much better LPPI in a big Norwegian city than in a big American city working in the same sector cause of everything that you don’t get through taxes in the US. The tax level itself was about the same in total though lol. It also doesn’t account for whether or not someone has children which would be two completely different stories here. Impossible to compare based on this dataset really.
You have shared an index that borders on being meaningless. The Local Purchasing Power Index used an average calculation to determine purchasing power.
If I show you a stat with this that instead includes developing nations, [you’ll see that Kuwait is number one.](https://www.numbeo.com/cost-of-living/rankings_by_country.jsp?displayColumn=5)
LPPI does not measure:
– poverty
– economic inequality
– employment conditions
– economic fairness
In New York City alone, 1/4th of people – 25% – live under poverty. But worse, 1% of Americans own 1/3rd of the country’s wealth.
That’s why the U.S. *average* is high, just like Oman and Saudi Arabia to name a couple.
You’ll have to find a better calculation to illustrate what you’re implying.