Six of the 10 most expensive cities for expats, including the top three, are in Asia, in the latest global ranking by Mercer.
Hong Kong retained its spot as the most expensive city for expatriates both in Asia and globally, followed by Turkmen capital Ashgabat in second position, Tokyo and Zurich remain in third and fourth positions, respectively, and Singapore in fifth, down two places from last year, according to the 26th annual «Cost of Living Survey» by U.S. human resources consulting firm Mercer.
The special administrative territory kept its title as due to currency movements measured against the U.S. dollar, which drove up the cost of living locally, Mercer said. Similarly, the strength of the dollar drove up costs for expatriates in U.S. cities, including New York City, which climbed three places to sixth.
Swiss Lead Europe
Zurich, Bern and Geneva are Europe's most expensive, in fourth, eighth, and ninth place, respectively, with the latter two cities both jumping up four places each from last year.
Mercer said that weakening currencies against the U.S. dollar have pushed many cities down in the ranking. Paris (50), Milan (47) and Frankfurt (76) all fell in this year’s ranking. London (19), Birmingham (129) and Belfast (149) jumped four, six, and nine places, respectively this year, as the pound held against the U.S. dollar.
Volatility Due to Covid-19
«Sudden changes to exchange rates has been mainly driven by the impact COVID-19 is having on the global economy,» Yvonne Traber, Mercer global mobility product solutions leader said.
«This volatility can affect mobile employees in a variety of ways, from shortages and price adjustments for goods and services, to supply chain disruptions or when employees are paid in home country currency and need to exchange funds into the host country for local purchases,» Traber added.
The 2020 ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment, with New York City as the base city for all comparisons.
