South Africa is ranked as the cheapest country in the world to live and retire, according to a new report, citing dollar strength against many global currencies.

GoBankingRates ranked 112 nations by four key affordability metrics provided by online pricing database Numbeo.

Local purchasing power index: Measures the relative purchasing power of a typical salary in that country, compared to New York City. A lower purchasing power buys fewer goods, while a higher purchasing power buys more.

Rent index: Compares typical rental prices in the country to New York City.

Groceries index: Compares typical grocery prices in the country to New York City.

Consumer price index: Compares costs of local goods and services — including restaurants, groceries, transportation and utilities — to New York City.

The report compared prices with those in New York and said of South Africa:

Local purchasing power is 26.9% higher

Rent is 87.5% cheaper

Groceries are 71% cheaper

Local goods and services are 65.8% cheaper

“South Africa is the cheapest country to live or retire. It’s also the world’s largest producer of platinum, gold and chromium, which goes far to enrich the country and its economy.

“This resulted in a local purchasing power that’s significantly higher than what New Yorkers face, which is the most favorable factor that puts South Africa at No. 1,” GoBanking Rates said.

It said that along with a higher local purchasing power, South Africa also offers lower prices on consumer goods and groceries, and rent costs that are typical of the 50 cheapest countries.

In the major city of Cape Town, for instance, monthly expenses total just under $400 while the average rent costs are reflected by the typical price to rent a one-bedroom in Durban of around $280 a month, the report said.

The second cheapest country, India has a local purchasing power of 20.9% lower than New York, while rent is 95.2% cheaper, groceries are 74.4% cheaper, and local goods and services are 74.9% cheaper.

Read: This is what R100 buys you around the world

Elsewhere in Africa, Zambia is sixth, Algeria (25th), Tunisia (34th), Egypt (43rd), Morocco (46th), Namibia (53rd), Kenya (79th), Ghana (108th).

Top 10 cheapest countries to live and retire



South Africa India Kosovo Saudi Arabia Kazakhstan Zambia Oman Paraguay Czech Republic Macedonia

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