The Philippines is cheap... but only if your standards are low
What struck me most in the Philippines is how dramatically prices rise as you move up the quality ladder.
At the basic level, the country is definitely cheap. But once an average European middle-class person starts looking for familiar standards, the savings shrink quickly, and sometimes disappear altogether.
Supermarkets are a good example. Basic products that Filipinos commonly eat are cheaper, but given the enormous wage gap, they often aren't as cheap as you'd expect. On the other hand, many items that are completely ordinary in a European supermarket, such as good cuts of meat, decent cheese, dairy products, proper muesli, and protein products, cost the same or much more in the Philippines. The selection is also noticeably worse: the plastic-packaged junk food aisle seems endless, while other categories lack surprising variety. Even basic ingredients like crushed tomatoes can be hard to find.
Restaurants show this even more clearly. Cheap food is everywhere, but the ingredient quality is often very poor: lots of rice, greasy meat, fried food, and very little variety. Once you start looking for good meat, proper fish, quality ingredients, and decent cooking, prices quickly approach or exceed European levels. A decent sushi buffet, steakhouse, or Italian restaurant can cost the same as or more than in Europe, with no guarantee of similar quality.
Gyms are the same. A modern gym with proper equipment, air conditioning, and good machines can cost nearly twice as much as in Europe, despite the huge difference in salaries.
Transportation is interesting too. Yes, Grab is very cheap compared to European taxis, but you lose an absurd amount of time in endless traffic jams. In most parts of Europe, you can walk or use efficient public transport at almost no cost. Time is money too.
I haven't even mentioned public infrastructure, sidewalks, cleanliness, or the everyday conveniences Europeans take for granted.
Housing is probably the biggest real saving, but that advantage shrinks when you look for a spacious, well-maintained apartment in a good neighborhood.
The Philippines seems to have a very low entry price but a steep quality-to-price curve. Relying heavily on cheap local labor is much cheaper, but as soon as you need good ingredients, equipment, or a decent standard of living, most of the advantage disappears.
So I'm curious: why is the Philippines considered such a great value country, especially among American retirees?
Is the difference really that big, or do Americans start from a very different baseline? Maybe in the US, groceries and restaurants of similar quality are much more expensive, and walkable cities, good public transport, and easy access to everyday conveniences aren't as common as they are in Europe.
I'd like to hear whether other Europeans feel the same way, or whether Americans really see it differently.
Let me shorten this for you. In the Philippines, local products are cheap and imported goods are more expensive. Rent is cheap but infrastructure is bad. The end.
Especially with food and groceries, what you say is exactly right. I think it's because there are so many imported goods. I'm vegetarian, so I eat a ton of Greek yogurt for protein, and in the Philippines, Chobani costs almost twice what it does in the US. Last time I paid 650 pesos for one tub. Most vegetables and fruits are like that too.
I don't know much about the Philippines, but I live in another Southeast Asian country, and it's the same here. People say the country I live in is cheap, but they leave out the things they took for granted that aren't part of everyday life here: - Well-maintained roads - Clean streets without garbage - Walkable streets with wide sidewalks everywhere - Modern public transportation that can get you anywhere - Drinkable water - Decent public education (no need to send kids to private schools) - Good hospitals - High-quality food - Strict enforcement of hygiene standards at restaurants and other businesses - Strict safety standards - Rule of law - Labor laws - Safety regulations ...
I think OP is pretty accurate. That said, I didn't buy a condo in the Philippines to live the way I lived in the US. I'm here to simplify my life, and I live completely differently here. I bought the condo in cash, so there's no rent, just the annual property tax and building dues. When I was in the US, I'd go to places like Trader Joe's or Costco and buy a week's worth of groceries or more in one trip. A lot of the time I couldn't finish everything, so I ended up throwing away fruit, vegetables, dairy, and sometimes meat. In the Philippines, every morning I go out and buy a mocha coffee, one or two pieces of fruit for the day, a few eggs for tomorrow morning, and fresh vegetables for dinner... all in all about 5 dollars. Each week I buy fresh meat, fruit juice, or milk. I eat one sack of rice a month, and I buy things like soy sauce and vinegar whenever I run out. I still shop every week, but I buy much less, so nothing gets wasted. It's true that quality generally scales with price. I've seen that in every country I've traveled to. I compromise on a lot of items and save quite a bit compared to the US. If a mango has a few bruises but costs a quarter as much, I can live with that, and if eggs are a dollar a tray, a little chicken poop on the shell is just a rinse away. Still, there are things I pay more for because of quality. Sometimes I really need real Oreos, and I need decent body wash and shampoo. I also have to buy good appliances (air conditioner, rice cooker, pans, cookware, etc.). I bring most of my clothes from the US. Brands that are considered high quality here look like budget clothing to me. In short, if you move to the Philippines expecting to enjoy the same quality of life you had in an average Western country but much cheaper, you'll be disappointed. If your goal is to simplify your life and live more minimally (in my experience, with much less stress), you can do that far more efficiently and for far less money than in most Western countries. Some people do that, but many can't adjust... I'm not blaming them. Everyone is different.
I'm from London. There's no comparison. Even against major Philippine cities like Manila, London is more expensive in almost every category. Restaurants are 3-4 times more expensive in London, gyms are 2x, transport is 10x, housing is 5x. Alcohol is about 3x more expensive. I live in BGC in a mid-range modern studio for 450 pounds a month (about 600 pounds including utilities). A mid-range studio in a top London neighborhood would cost you 2000-3000 pounds a month, or 2300-3300 pounds with utilities. The things that are similar or more expensive in the Philippines are Western products at the supermarket, and maybe public healthcare, which in the UK is free at the point of care. But unless you're going by the standards in the thread title, you'd go private, and private healthcare in London costs several times more. Makati/BGC is also much cheaper than London under the same conditions. In London, I lived in a shared house outside the city center with another adult and spent about 2500 pounds a month on everything combined. Now I live alone in a much nicer modern studio in BGC and spend about 1800 pounds a month on everything combined. My standards are higher here in BGC, yet I spend far less than in London. Under the same conditions, London would be several times more expensive. So don't speak as if you represent everyone. You're not qualified to.
Comments 1
Generally, I agree.
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