International Cost of Living Rankings International cost of living rankings are the result of comparing the cost of an expatriate’s personal budget, using the local prices for the same defined quantities of the same goods and services in each country throughout the world. Our findings show that the compound impact of the multifaceted global economic trends that impact each country in one way or another, are contributing to rapid substantial changes in the relative cost of living of countries around the world. The changes in relative cost of living are large and have occurred in a relatively short period of time. The reason for this is due to the fact that so many economic crises are occurring simultaneously. 2008 saw the housing bubble burst followed by the failure of a number of global fund / asset management, insurance and banking giants. Some have been liquidated or taken over; others have been bailed out with government funds. In 2009 we have seen the continued fall in house prices which many believe have yet to bottom out. Stock prices and market indexes are down to levels last seen a decade or more ago. The trend towards decreased inflation and lower interest rates continues in developed and developing markets. We are also experiencing exchange rate volatility with a number of large economies seeing their currency weaken considerably in the past year. The economic impact is continuing to spread around the globe. We are currently seeing a truly global recession with reduced demand for manufacturing inputs and outputs as well as reduced energy demand and large scale job losses. This study of 276 global locations covered every country in the world. The study comprised the cost of several hundred items that expatriates typically spend their pay on, grouped into 13 Basket Groups. The findings as at 1 April 2009 have been compared to the previous findings of 1 December 2008. The Index uses New York as the base (New York = 100). An index greater than 100, means that the cost of living is higher than New York, an index less than 100, means that the cost of living is lower than New York. Geneva has a cost of living index of 110 for example. That means that on average, goods and services that cost $100 in New York, cost $110 in Geneva. Each city is ranked according to their overall cost of living index which includes the cost of all basket groups. A cost of living index increases or decreases based on the local price of the goods and services used in the study and the ruling exchange rate. As a general principle, a country with a currency that has increased against other currencies (stronger currency) and which has relatively high local inflation (rapid/large price increases), will generally experience an increase in cost of living compared to other countries. On the other hand, a country with a currency that has decreased against other currencies (weaker currency) and which has relatively low local inflation will generally experience a decrease in cost of living compared to other countries. It is important to note that we are talking about relative changes. Take London as another example. As recently as December 2008, London was still ranked the 6th most expensive place in the world for expatriates to live. As at April 2009 it is the 23rd most expensive place in the world for expatriates. That does not mean that the local cost of living for expatriates living in London has decreased. What it does mean is that relative to other places in the world, London is no longer as expensive as it was last year. What makes London’s cost of living relatively lower than it was is mainly due to the increase in the cost of living elsewhere together with the weaker British Pound. These relative changes have a substantial impact on expatriate employees. An expatriate working in a high cost of living - strong currency country such as Hong Kong where the Hong Kong Dollar is pegged to the US Dollar illustrates this point. The high cost of living makes it difficult to save due to high local prices; Household (Accommodation including utilities) in particular is very expensive. However, an expatriate working in Hong Kong will now likely find that remitting money back home provides greatly increased spending power at home. In the past year the Hong Kong Dollar has increased 15% against the Malaysian Ringgit, and 30% against the Indonesian Rupiah and the Australian Dollar. The Top 10 Most Expensive Places for Expatriates to Live Tokyo has retained its status as the most expensive city in the world for expatriates to live. The cost of living index for Tokyo has increased from 126 in December 2008 to 143 as at 1 April 2009, and the Yen has strengthened against the US Dollar. At the other end of the scale, Harare has retained its status as the least expensive city in the world and is ranked 276 with an index of just 17 and a currency which is still in free-fall. Tokyo is ranked 1st for Healthcare expenses, 2nd for Groceries and 2nd for Household (Accommodation including utilities). Hong Kong is now ranked 2nd overall having climbed from 33rd place in December 2008. Its cost of living index has increased from 103 to 121 and is ranked 1st for Household expenses and 2nd for Healthcare. It is interesting however to note that Hong Kong is not expensive in all categories. It is ranked 202nd for Alcohol & Tobacco, 226th for Recreation & Culture, 227th for Education, and 247th for Furniture & Appliances. Lagos is the 3rd most expensive city in the world for expatriates, having previously been ranked 11th. It is ranked 1st for Groceries and for Furniture & Appliance expenses, 6th for Healthcare, and 18th for Restaurants, Meals Out and Hotels. Caracas has moved substantially up the rankings to 4th, having been ranked just 32nd in December 2008. It is ranked 1st for Education expenses, 5th for Healthcare, and 6th for Household expenses (Accommodation including utilities). Port Moresby in Papua New Guinea is the 5th ranked overall most expensive city for expatriates due to most goods and services being imported from Australia. Port Moresby is ranked 6th for Recreation & Culture, 7th for Communication and for Healthcare, and 8th most expensive for Clothing. Geneva has dropped slightly to 6th, having been ranked 4th in December 2008. It is ranked 3rd most expensive for Transport expenses, 11th for Recreation & Culture, 15th for Healthcare, and 20th for Clothing. Dubai has moved into the top 10 most expensive places in the world for expatriates to live for the first time. Dubai is now ranked 7th, substantially up from 34th in December 2008. Its cost of living index has increased from 103 to 109 since December 2008. It is ranked 1st for Restaurants Meals Out and Hotel expenses, 6th for Clothing, 11th for Healthcare, and 16th for Groceries. Dubai is currently ranked 4th for Household expenses (Accommodation including utilities), however evidence is emerging that this will decrease significantly in the next quarter as it has been hit relatively hard in the property sector with falling property prices and rentals. Doha has moved up in the global rankings faster than any other city. In December 2008, Doha was ranked the 45th most expensive city for expatriates, it is now 8th. The overall cost of living index has moved up from 101 to 109, equal to that of Dubai. It is ranked 2nd for Restaurants, Meals Out and Hotel expenses, 3rd for Clothing, 7th for Household expenses (Accommodation including utilities), 8th for Groceries as well as for Recreation and Culture, and 10th for Healthcare. Denmark has dropped slightly to being the 9th most expensive place in the world for expatriates, having been ranked 3rd in December 2008. It is ranked 3rd most expensive for Groceries, 5th for Transport, and 15th for Furniture and Appliances. Hamilton in Bermuda completes the top 10 moving from 26th in December despite the overall cost of index remaining 108. Hamilton is ranked 4th most expensive for both Education and Healthcare, 10th for Personal Care, 11th for Household expenses (Accommodation including utilities), and 15th for Groceries. The full overall cost of living ranking list, sourced from Xpatulator.com as at 1 April 2009 is as follows: Rank Location 1 Japan, Tokyo 2 China, Hong Kong 3 Nigeria, Lagos 4 Venezuela, Caracas 5 Papua New Guinea, Port Moresby 6 Switzerland, Geneva 7 United Arab Emirates, Dubai 8 Qatar, Doha 9 Denmark, Copenhagen 10 Bermuda, Hamilton 11 Angola, Luanda 12 Switzerland, Zurich 13 Russia, Moscow 14 Solomon Islands, Honiara 15 Cameroon, Douala 16 Chad, N'Djamena 17 Taiwan, Taipei 18 Liechtenstein, Vaduz 19 USA, New York NY 20 New Caledonia, Noumea 21 Greenland, Nuuk 22 Ireland, Dublin 23 United Kingdom, London 24 France, Paris 25 Norway, Oslo 26 Italy, Milan 27 San Marino, San Marino 28 USA, San Francisco Calif 29 Monaco, Monaco 30 Austria, Vienna 31 Bahamas, Nassau 32 Central African Republic, Bangui 33 Nauru, Yaren 34 USA, Boston Mass 35 Finland, Helsinki 36 Italy, Rome 37 Kazakhstan, Almaty 38 Cote D'Ivoire, Abidjan 39 Bahrain, Manama 40 Micronesia, Palikir 41 Isle of Man, Douglas 42 Haiti, Port-au-Prince 43 USA, San Jose Calif 44 Cameroon, Yaounde 45 Djibouti, Djibouti 46 Palau, Melekeok 47 Guinea-Bissau, Bissau 48 Azerbaijan, Baku 49 Benin, Cotonou 50 Slovakia, Bratislava 51 Belgium, Brussels 52 Netherlands, Amsterdam 53 Sao Tome and Principe, Sao Tome 54 Jersey, Saint Helier 55 Mali, Bamako 56 Gabon, Libreville 57 United Arab Emirates, Abu Dhabi 58 Croatia, Zagreb 59 Singapore, Singapore 60 Ghana, Accra 61 Spain, Madrid 62 Ukraine, Kiev 63 USA, Philadelphia Pa 64 Cayman Islands, George Town 65 Sierra Leone, Freetown 66 Germany, Berlin 67 Czech Republic, Prague 68 USA, San Diego Calif 69 Jordan, Amman 70 Trinidad and Tobago, Port-of-Spain 71 USA, Los Angeles Calif 72 USA, Washington DC 73 Estonia, Tallinn 74 USA, Baltimore Md 75 Falkland Islands, Stanley 76 Saudi Arabia, Riyadh 77 Guernsey, St Peter Port 78 Comores, Moroni 79 Sudan, Khartoum 80 Germany, Bonn 81 Vatican City, Vatican City 82 Canada, Toronto 83 Timor-Leste, Dili 84 Hungary, Budapest 85 USA, Seattle Wash 86 Brazil, Brasilia 87 Lebanon, Beirut 88 USA, Miami Fla 89 Vanuatu, Port Vila 90 Luxembourg, Luxembourg 91 Jamaica, Kingston 92 Australia, Sydney 93 Kuwait, Kuwait City 94 Moldova, Chisinau 95 Congo Democratic Rep, Kinshasa 96 Germany, Frankfurt 97 Tuvalu, Funafuti 98 Iceland, Reykjavík 99 Barbados, Bridgetown 100 Portugal, Lisbon 101 Mozambique, Maputo 102 Senegal, Dakar 103 Canada, Vancouver 104 Niger, Niamey 105 China, Beijing 106 Ethiopia, Addis Ababa 107 Turkey, Ankara 108 Togo, Lome 109 Equatorial Guinea, Malabo 110 Martinique, Fort-de-France 111 Armenia, Yerevan 112 USA, Chicago Ill 113 Liberia, Monrovia 114 Gibraltar, Gibraltar 115 Sweden, Stockholm 116 Somalia, Mogadishu 117 USA, Portland Ore 118 Israel, Jerusalem 119 Malta, Velletta 120 Puerto Rico, San Juan 121 Canada, Calgary 122 Rwanda, Kigali 123 Guam, Hagatna 124 Burkina Faso, Ouagadougou 125 Zambia, Lusaka 126 Andorra, Andorra la Vella 127 Cyprus, Nicosia 128 USA, Las Vegas Nev 129 Samoa, Apia 130 Saint Helena, Jamestown 131 Tanzania, Dar es Salaam 132 Greece, Athens 133 Poland, Warsaw 134 Maldives, Male 135 Malawi, Lilongwe 136 Thailand, Bangkok 137 Indonesia, Jakarta 138 USA, Jacksonville Fla 139 Antigua and Barbuda, Saint John's 140 Gambia, Banjul 141 United Kingdom, Glasgow 142 Lithuania, Vilnius 143 Belarus, Minsk 144 USA, Dallas Tex 145 Australia, Canberra 146 India, Mumbai 147 Australia, Melbourne 148 USA, Denver Colo 149 Algeria, Algiers 150 Georgia Republic of, Tbilisi 151 Honduras, Tegucigalpa 152 USA, Atlanta GA 153 USA, Cleveland Ohio 154 Canada, Montreal 155 USA, Milwaukee Wis 156 Congo, Brazzaville 157 Guinea, Conakry 158 Saint Kitts and Nevis, Basseterre 159 USA, Detroit Mich 160 Panama, Panama City 161 Latvia, Riga 162 Uganda, Kampala 163 Korea Republic of, Seoul 164 USA, Charlotte NC 165 Marshall Islands, Majuro 166 Australia, Perth 167 USA, Phoenix Ariz 168 USA, Columbus Ohio 169 USA, Austin Tex 170 Madagascar, Antananarivo 171 USA, Tampa Fla 172 United Kingdom, Birmingham 173 Afghanistan, Kabul 174 Grenada, Saint George's 175 Vietnam, Hanoi 176 USA, Indianapolis Ind 177 USA, St Louis MO 178 Saint Vincent and the Grenadines, Kingstown 179 Peru, Lima 180 Syria, Damascus 181 USA, Fort Worth Tex 182 Slovenia, Ljubljana 183 Mauritania, Nouakchott 184 USA, El Paso Tex 185 Philippines, Manila 186 China, Shanghai 187 USA, Memphis Tenn 188 USA, Pittsburgh Penn 189 Belize, Belmopan 190 India, New Delhi 191 Romania, Bucharest 192 Guatemala, Guatemala City 193 Iran, Tehran 194 Cape Verde, Praia 195 India, Chennai 196 USA, Houston Tex 197 Canada, Ottawa 198 Costa Rica, San Jose 199 Dominica, Roseau 200 Nicaragua, Managua 201 Guyana, Georgetown 202 Dominican Republic, Santo Domingo 203 Bulgaria, Sofia 204 237 Suriname, Paramaribo 205 Cuba, Havana 206 Oman, Muscat 207 India, Calcutta 208 Mongolia, Ulaanbaatar 209 Tajikistan, Dushanbe 210 India, Hyderabad 211 Burundi, Bujumbura 212 USA, San Antonio Tex 213 Myanmar, Yangon 214 Uruguay, Montevideo 215 Paraguay, Asuncion 216 Albania, Tirana 217 Brunei, Bandar Seri Begawan 218 Mauritius, Port Louis 219 Fiji, Suva 220 Egypt, Cairo 221 Australia, Brisbane 222 El Salvador, San Salvador 223 Korea Democratic Republic of, Pyongyang 224 Laos, Vientiane 225 Mexico, Mexico City 226 Morocco, Rabat 227 India, Bangalore 228 Saint Lucia, Castries 229 New Zealand, Auckland 230 Kiribati, South Tarawa 231 Kosovo, Pristina 232 Kenya, Nairobi 233 Serbia, Belgrade 234 Bangladesh, Dhaka 235 Pakistan, Lahore 236 Bolivia, La Paz 237 Colombia, Bogota 238 Botswana, Gaberone 239 Sri Lanka, Colombo 240 Pakistan, Islamabad 241 Turkmenistan, Ashgabat 242 Kyrgyzstan, Bishkek 243 Macedonia, Skopje 244 Pakistan, Karachi 245 Australia, Adelaide 246 Montenegro, Podgorica 247 Chile, Santiago 248 Malaysia, Kuala Lumpur 249 China, Macao 250 Eritrea, Asmara 251 Iraq, Baghdad 252 Argentina, Buenos Aires 253 Bosnia and Herzegovina, Sarajevo 254 Uzbekistan, Tashkent 255 Ecuador, Quito 256 Nepal, Kathmandu 257 Tunisia, Tunis 258 Yemen, Sanaa 259 Bhutan, Thimphu 260 South Africa, Johannesburg 261 China, Shenzhen 262 Tonga, Nuku'Alofa 263 China, Dalian 264 South Africa, Pretoria 265 Lesotho, Maseru 266 China, Wuhan 267 Namibia, Windhoek 268 Libya, Tripoli 269 South Africa, Cape Town 270 China, Guangzhou 271 Seychelles, Victoria 272 South Africa, Durban 273 Cambodia, Phnom Penh 274 Swaziland, Mbabane 275 China, Tianjin 276 Zimbabwe, Harare About The Author: Steven Coleman runs the most comprehensive international cost of living website available Xpatulator.com an internet service that provides free cost of living and hardship information for 276 global locations to registered users. The premium content calculators allow you to customise your own cost of living index by choosing your own basket groups.
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