GLOBAL/ WORLD COST OF LIVING RANKINGS 2014 / 2013

TOP 10 COSTLIEST CITIES FOR EXPATRIATES 2014/ 2013

1.Luanda, Angola
2.Moscow, Russia
3.Tokyo, Japan
4.N’Djamena, Chad
5. Singapore, Singapore
6. Hong Kong, Hong Kong
7. Geneva, Switzerland
8. Zurich, Switzerland
9.  Bern, Switzerland
10. Sydney, Australia

UBS report including access to Apple iPhone app

Sept 2012 - - The latest UBS Price and Earnings report, produced by Switzerland's biggest bank was published.

The report ranks the 72 cities across the globe, in respect of a number of criteria.

  Our survey shows that Oslo, Zurich and Tokyo are the most expensive cities in the world. Prices for many goods and services are lowest in the two Indian metropolises of Delhi and Mumbai. Taking rent into account as well, the rankings remain unchanged. Tokyo has ousted Copenhagen to take third place in our price rankings compared with 2009. One remarkable finding is that when rents are included, relative price levels compared to New York move down in all cities except Hong Kong

World Cost of Living 2013/ 2014: The latest survey from Mercer is designed to help multinational companies and governments determine compensation allowances for their expatriate employees. New York is used as the base city, and all cities are compared against it. Currency movements are measured against the US dollar.

The survey covers 214 cities across five continents and measures the comparative cost of over 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.

Last year, Dublin, Ireland, dropped 14 places in a new list of the world's most expensive cities, largely due to the euro's decline.

Ireland's capital was ranked at No.72 in the list of cities. It has a 26th rank in the UBS Bank survey - - for reasons of comparability, we converted all prices and earnings into a common currency. In order to minimise the effect of daily price fluctuations, the average exchange rate during the assessment period was used.

The difference in cost for these items can be dramatic. For example the cost of a cup of coffee in Managua, Nicaragua is $1.54 compared to $8.29 in Moscow; a fast food hamburger meal is $3.62 in Kolkata (Calcutta), India, versus $13.49 in Caracas, and a cinema ticket is $5.91 in Johannesburg compared to $20.10 in London. These are but a few examples of the thousands of comparisons to be found in Mercer’s full report that aid employers in setting cost of living and other expatriate allowances.

Mercer produces individual cost of living and rental accommodation cost reports for each city surveyed.

The cost of expatriate housing is typically the biggest expense for employers, and it plays an important part in determining the rankings. The Russian capital of Moscow follows Luanda as the second most expensive city because of high costs for rental accommodation and imported goods and services commonly purchased by expatriates commanding a premium. A luxury two bedroom unfurnished apartment rental for one month in Moscow is $4,600 a month or 14 times as much than Karachi. Rounding out the top five most expensive cities for expatriate living, which also have pricey rental accommodations, are Tokyo, the Chad city Ndjamena, and Singapore.

Recent world events, including economic and political upheavals, which resulted in currency fluctuations, cost inflation for goods and services, and volatility in accommodation prices have impacted these cities making them expensive,” said Barb Marder, senior partner and Mercer’s Global Mobility Practice Leader. “Despite being one of Africa’s major oil producers, Angola is a relatively poor country yet expensive for expatriates since imported goods can be costly. In addition, finding secure living accommodations that meet the standards of expatriates can be challenging and quite costly."

The other cities appearing in Mercer’s list of top 10 costliest cities for expatriates are Hong Kong, Geneva, Bern and Zurich.

According to Marder, “A recent Mercer global mobility survey shows that all different types of international assignments are on the rise. Given the increasing numbers of business travelers, global ‘commuters’ and longer-term expatriates, companies are keeping a close eye on the cost of living for international assignees in different cities around the world. Organizations need to evaluate the impact of currency fluctuations, inflation, and political instability when sending employees on overseas assignments while ensuring they can facilitate the moves they need to drive the business results by offering fair and competitive compensation packages.”

Currency fluctuations and the impact of inflation on goods and services have affected the cost of expatriate programs as well as the city rankings.

Overall, the cost of living in cities across parts of Europe has gone up in the ranking as a result of the slight strengthening of local currencies against the US dollar, whereas in Asia about half of the cities went down in the ranking – Japan especially – due to local currencies’ weakening against the US dollar,” said Nathalie Constantin-Métral, Principal at Mercer with responsibility for compiling the survey ranking.

Four European cities are among the top 10 most expensive despite moderate price increases in most European countries. Switzerland remains one of the costliest locations for expatriates despite decreasing or stable accommodation costs and a robust Swiss franc.

Some African cities rank high in Mercer’s 2013 survey, reflecting high living costs for expatriate employees.

In the Americas, cities in South America are the most expensive locations for expatriates. Some cities dropped in the ranking as a result of local currencies weakening against the US dollar such as Brazilian cities, while others jumped as a result of high inflation on goods and services and rentals. New York, the base city for Mercer’s Cost of Living ranking, is the most expensive city in the United States.

Overall, US cities either remained stable in the ranking or have slightly decreased due to the movement of the US dollar against the majority of currencies worldwide,” explained Constantin-Métral. ”Yet several cities, including New York, moved up in the ranking due to a rise in the rental accommodation market.

Canadian cities generally moved down in the ranking this year as a result of a slight decrease of the Canadian dollar against the US dollar, and because the prices of goods and services increased at a lower pace than in New York.

Click for full-scale price comparison image

Economist Intelligence Unit 2013:

 Worldwide Cost of Living: Austerity upside makes Europe cheaper in 2013

Check out our new subscription service, Finfacts Premium , at a low annual charge of €25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

Top 50 cities in 2012: Cost of living ranking Mercer international basket including rental accommodation costs Base City: New York

Rankings

   

 

 

March 2012

March 2011

City

Country

1 2 TOKYO JAPAN
2 1 LUANDA ANGOLA
3 6 OSAKA JAPAN
4 4 MOSCOW RUSSIA
5 5 GENEVA SWITZERLAND
6 7 ZURICH SWITZERLAND
6 8 SINGAPORE SINGAPORE
8 3 N'DJAMENA CHAD
9 9 HONG KONG HONG KONG
10 11 NAGOYA JAPAN
11 14 SYDNEY AUSTRALIA
12 10 SÃO PAULO BRAZIL
13 12 RIO DE JANEIRO BRAZIL
14 16 BERN SWITZERLAND
15 21 MELBOURNE AUSTRALIA
16 21 SHANGHAI CHINA
17 20 BEIJING CHINA
18 15 OSLO NORWAY
19 30 PERTH AUSTRALIA
20 12 LIBREVILLE GABON
21 17 COPENHAGEN DENMARK
22 19 SEOUL SOUTH KOREA
23 34 CANBERRA AUSTRALIA
24 31 BRISBANE AUSTRALIA
25 18 LONDON UNITED KINGDOM
26 44 KHARTOUM SUDAN
27 46 ADELAIDE AUSTRALIA
28 29 ST. PETERSBURG RUSSIA
29 51 CARACAS VENEZUELA
30 43 SHENZEN CHINA
31 38 TEL AVIV ISRAEL
31 38 GUANGZHOU CHINA
33 32 NEW YORK CITY, NY UNITED STATES
34

23

NIAMEY NIGER
35

70

YANGON MYANMAR
36

61

KINSHASA DEM. REP. OF THE CONGO
37

27

PARIS FRANCE
38

25

MILAN ITALY
39

41

LAGOS NIGERIA
39

63

BAMAKO MALI
41

67

ABIDJAN CÔTE D'IVOIRE
42

34

ROME ITALY
43

55

BRAZZAVILLE CONGO
44

39

DJIBOUTI DJIBOUTI
45

33

BRASILIA BRAZIL
46

39

STOCKHOLM SWEDEN
47

37

NOUMÉA NEW CALEDONIA
48

36

VIENNA AUSTRIA
49

48

BAKU AZERBAIJAN
50

25

VICTORIA SEYCHELLES
50

44

DAKAR SENEGAL

Mercer's full 2012 rankings [pdf]

Dec 2007: World Bank study says 12 economies account for more than two-thirds of world’s output; Chinese economy size cut by 40%; Ireland is fourth most expensive world economy

Return to Top

 
 
Google
 
Web www.finfacts.com

The Finfacts Guinness Pint Index
The ratio of the price of pint to average earnings

 

Currency Converter


Believe those who search for truth. Doubt those who claim to have found it   -André Gide (1869-1951) Nobel Laureate 1947

 

Finfacts Homepage
Business News Centre
Site Index
Contact Us

Click for Dublin + Global Weather
Click for Dublin, Ireland Forecast

 

Copyright© 2005. Finfacts Multimedia Limited