The cost of alcohol is highly correlated to overall cost of living in a country. Expensive countries like Bermuda, Iceland and Australia, are also expensive places to drink. This is because it generally costs more to make and sell beer and hard liquor in places with high labor costs, explained Hamadeh.

Bahrain is an exception to this rule. It isn’t a particularly expensive country overall, with prices for goods and services 25% lower than globally. The steep price of alcohol in the country is an example of how factors other than labor costs, including trade, local taxes, and social policy, can determine how much customers pay. In contrast, alcohol prices in Germany are 23% lower than the global average even though overall prices are 25% higher. Germany combines low taxes with large domestic production, making it a tippler’s dream.

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