The list, compiled by business magazine CEO World, ranks 132 countries in order of living costs based on data from a range of studies and media.
Parameters encompassed by the analysis include accommodation, clothing, taxi fares, utility, internet, the price of groceries, transport, and eating out. The data was used to compile a score for each country within five metrics: cost of living, rent, groceries, eating out and purchasing power.
The metrics were then given a value using New York City as a control: if a country has a score of over 100, it is more expensive than New York.
Three countries did in fact achieve this with their overall score: Switzerland (122.4), Norway (101.43) and Iceland (100.48).
As such, Norway is ranked by the magazine as the second-most expensive country to live in the world this year.
Nordic neighbour Denmark was not far behind in 5th place with an index of 83, with Sweden the cheapest of the three Scandinavian countries in 23rd (69.85).
Japan was the final country in the top 5, in 4th place.
The United Kingdom was placed 27th (67.28), Ireland 13th (75.91), the United States 20th (71.05), Canada 24th (67.62) and Australia 16th (73.54).
Looking at the metrics individually, Norway’s performance was variable.
The Nordic nation was the 12th-most expensive country on the cost of rent index. For groceries, it placed third just behind South Korea and with Switzerland still far ahead as the most expensive.
Norway is also the third-most expensive country to eat at a restaurant – behind Switzerland and Iceland.
For local purchasing power, Norway is lower on the list, in 17th.