Purchasing power in European capitals as of 2024 will vary significantly when considering the economic situation of each country, average salary levels and cost of living. Purchasing power is an indicator of how much goods and services a person can buy for their income. This power varies across the various capitals of Europe depending on regional economic sizes, social welfare systems and living standards.
In this article, we will examine purchasing power in European capitals as of 2024, compare the cities with the highest and lowest purchasing power and look at the economic factors behind these differences.
Purchasing Power and Cost of Living: Basic Concepts
Purchasing power is usually calculated using two main factors:
- Average Income: The income level that individuals in a city earn.
- Cost of Living: The cost of food, accommodation, transportation, and other basic needs.
The balance between these two factors determines how much goods and services an individual can buy with their salary. High purchasing power indicates that they can buy more with a high income despite a low cost of living. Conversely, low purchasing power indicates an imbalance between high living costs and low salaries.
Since Europe is a large continent with different economic and social structures, purchasing power in capital cities can vary greatly. Some cities have strong salary structures despite high living costs, while others have relatively more affordable living costs with low salaries.
| Country | Purchasing power |
| Switzerland | 181.2 |
| Luxembourg | 175.9 |
| Denmark | 123.7 |
| Germany | 120.4 |
| Sweden | 120.3 |
| United Kingdom | 115.3 |
| Norway | 114.7 |
| Austria | 113.1 |
| Netherlands | 112 |
| Finland | 111.7 |
| Belgium | 105 |
| Ireland | 100.8 |
| France | 97.5 |
| Poland | 95.4 |
| Spain | 92.6 |
| Czechia | 85.1 |
| Croatia | 83.1 |
| Bulgaria | 82.7 |
| Estonia | 80.3 |
| Slovenia | 80.2 |
| Lithuania | 79.3 |
| Italy | 78.7 |
| Russia | 76.5 |
| Slovakia | 74.6 |
| Romania | 74.3 |
| Hungary | 68.8 |
| Latvia | 68.3 |
| Bosnia and Herzegovina | 64.3 |
| Belarus | 59.5 |
| Portugal | 55.7 |
| Türkiye | 54.7 |
| Macedonia | 53.3 |
| Greece | 52.8 |
| Serbia | 52.2 |
| Ukraine | 43.7 |
| Albania | 40.6 |
Europe’s Capitals with the Highest Purchasing Power in 2024
Zurich , Switzerland
Zurich, the capital of Switzerland, is one of the cities with the highest purchasing power in Europe. Zurich stands out as one of the global financial centers and is notable for its high salary levels. Thanks to its developed economy and strong financial sector, Switzerland has the highest average salaries in this city in Europe.
The cost of living in Zurich is also quite high, especially accommodation and in transportation areas. However, thanks to the high income level, Zurich residents have a great purchasing power despite the high cost of living. A person working in this city can buy more goods and services with their salary. In addition, the quality of the health and education systems in Zurich also affects living standards are among the factors that increase.
Luxembourg, Luxembourg
Luxembourg is a small but extremely strong economy. The capital, Luxembourg, is one of the cities with the highest standards of living in Europe. Average salaries in Luxembourg are quite high and the country is particularly known for its finance and legal sectors.
Luxembourg is also home to many international companies, thanks to its low income taxes and proximity to the European Union. This contributes to the high wage levels in the city and the correspondingly high purchasing power. Although the cost of living is also quite high, the income levels and social security benefits allow people in the city to live comfortably.
Oslo, Norway
Oslo, the capital of Norway, has one of the highest standards of living in Europe. Norway’s strong welfare state model provides high-quality government services in many areas, from healthcare to education. Oslo is rich in natural resources and It is a city with a strong industrial sector, which is a significant factor in increasing average salaries.
The cost of living in Oslo is quite high, especially for accommodation and food. However, thanks to the social safety net and high salaries, Oslo residents have strong purchasing power. A person working in Oslo can buy more goods and services than in other European capitals. In addition, Norway’s low unemployment rate and high quality of life also make this city attractive.
Copenhagen, Denmark
Copenhagen, the capital of Denmark, is another city with the highest standard of living in Europe. Copenhagen is known for its high salaries, social security services, and strong education system. In addition, Copenhagen’s transportation infrastructure is well developed, and the city’s environmental sustainability efforts are among the factors that increase the quality of life.
The cost of living in Copenhagen is above the general average in Western Europe, especially in accommodation and food and beverages. However, the average income level in the city is enough to cover these high living costs, giving Copenhagen residents strong purchasing power.
Europe’s Capitals with the Lowest Purchasing Power in 2024 and Ankara
Sarajevo, Bosnia and Herzegovina
The capital of Bosnia and Herzegovina, Sarajevo, is one of the capitals with the lowest purchasing power in Europe in 2024. Bosnia and Herzegovina has been through a difficult economic period since the wars in the 1990s. Average salaries in Sarajevo are quite low compared to Western European capitals.
Although the cost of living is also quite low, people in Sarajevo can only buy a limited number of goods and services with their income due to low wages. However, Sarajevo’s low cost of living somewhat compensates for the low salaries here, but there is a large imbalance in purchasing power.
Bucharest, Romania
The capital of Romania, Bucharest, is one of the cities with the lowest purchasing power in Europe. While the cost of living in Bucharest is more affordable than in other major European capitals, average salaries are often not enough to cover these costs. Therefore, people in Bucharest can only buy a limited number of goods and services with their income.
High inflation rates in Bucharest increase the cost of living, while low salaries also limit purchasing power. Since Romania has an economy based on low-wage labor, workers in the capital Bucharest have less purchasing power compared to other European capitals.
Skopje, North Macedonia
Skopje, the capital of North Macedonia, is expected to be one of the cities with the lowest purchasing power in Europe in 2024. Average salaries in Skopje are quite low compared to more developed European countries. In addition, the cost of living in the city is relatively high.
Low salaries in Skopje limit purchasing power, especially for basic needs such as accommodation and food. However, the low cost of living somewhat offsets this lack of purchasing power. Skopje is a developing city, and its residents often struggle with their quality of life due to low salaries.
Chişinău, Moldova
Chişinău, the capital of Moldova, is one of the capitals with the lowest purchasing power in Europe. Average salaries in Chişinău are among the lowest in Europe. The cost of living is considerably lower than in Western European cities, but this advantage is not offset by low salaries.
The low income level in Chişinău makes the city weak in terms of purchasing power. Furthermore, Moldova’s economic situation and limited social services make it even more difficult for its residents to live in the city.
Ankara, Turkey Example
As of 2024, Ankara, the capital of Turkey, is one of the country’s economic centers, but it struggles with purchasing power due to the imbalance between high living costs and low salaries. In Ankara, while salaries, especially for government employees and the public sector, are the determinant of average salary levels, incomes in the private sector are generally lower. This situation stands out as a significant factor affecting Ankara’s purchasing power.
Living costs in Ankara are increasing, especially in accommodation, food and transportation. Housing rents, especially in the city center and popular neighborhoods, have increased significantly in recent years, creating a challenge for low-income individuals in the big city. At the same time, high inflation rates are increasing the cost of food and other basic needs. However, despite this increasing cost of living, average salary levels in Ankara are generally low compared to European capitals.
Although purchasing power in Ankara is more closely related to the standard of living, especially for those living in large cities, there is a serious imbalance between low salaries and high living costs. This imbalance causes citizens in the city to be able to buy fewer goods and services with average salaries. However, Ankara’s government incentives and strong ties to the public sector can offer advantages that offset this situation for some segments.
While middle and low-income families in Ankara have more limited purchasing power in the face of rising living costs, the quality of life of high-income segments may be more comfortable compared to more developed capitals in Europe. However, Ankara’s purchasing power in general remains stuck between high inflation and low salaries. This situation directly affects the quality of life and social welfare in the city, making living standards difficult, especially for low-income segments.
In Turkey in general, especially in Anatolian cities, although living costs are lower, salary levels are decreasing accordingly. This situation results in people living in other parts of Turkey, except for major cities like Istanbul, having limited purchasing power. The overall purchasing power in Turkey remains lower than in other capitals around the world as it struggles to find a balance between high inflation, low salaries, and rising costs of living.
The Relationship Between Purchasing Power and Quality of Life
Purchasing power in European capitals is a factor that affects not only a person’s economic situation but also their quality of life. Those living in a city with high purchasing power have access to better education opportunities, healthcare, and living standards. This can make the lives of those living in a city more comfortable.
On the other hand, quality of life can often be lower in cities with low purchasing power. People may have difficulty meeting their basic needs with low salaries, and social security systems are often limited. Therefore, purchasing power is an important factor that directly affects quality of life.
Purchasing power in European capitals as of 2024 is a comparison of high costs of living and average salary levels. While the more economically strong cities in Europe have high purchasing power thanks to higher salaries and improved living standards, this power is considerably lower in cities experiencing economic difficulties. Purchasing power is an important indicator that affects not only a person’s purchasing ability but also their overall quality of life.
