Hong Kong has been named the most expensive city to live and work abroad this year, according to a new report outlining the impact of rising costs of living and worsening macroeconomic trends on the global economy. foreign market.
City rose one place in Mercer’s Cost of Living Index 2022 to regain pole position after being collided with second place in 2021 of Ashgabat, Turkmenistan. This is the fourth time in five years that the Asian financial hub has been ranked as the most expensive location for foreign workers.
Hong Kong’s resurgence has been driven in part by rising inflationary pressures, which have driven up the cost of living globally. Meanwhile, ongoing Covid restrictions and increased political upheaval have made it more expensive to compensate employees posted there, said Mercer partner Vince Cordova. CNBC Make It.
“It’s partly due to the real estate market,” says Cordova, noting that desirable accommodation has now become more expensive, driving up the cost of packages for expats.
“The other part is the cost of goods and services and also the political uncertainty. Those who are going to be there will need to spend more to live well,” he said.
The city has collision 13 places in the Economist Intelligence Unit’s Global Liveability Index 2022 last week, in the context of what the EIU cited as a loss of political and cultural freedom.
Hong Kong is the Asian foreign in the top 5 cities dominated by Switzerland in Mercer’s 2022 Cost of Living index: Zurich, Switzerland is ranked as the second most expensive city in the world for workers. foreign activities, followed by Geneva (Tuesday), Basel (Wednesday) and Bern (5th).
That’s thanks to the strength of the Swiss franc, which, until recently, has held up against the rising US dollar, the benchmark currency in Mercer’s report, Cordova said.
How it works
Mercer’s annual cost of living index, now in its 28th year, is designed to help companies and governments determine pay packages for foreign employees by measuring accommodation and accommodation costs. goods and services in the local market relative to their relative costs in New York City.
This year’s index ranks 227 cities and takes into account the prices of more than 200 items – from categories like food, transportation, housing and personal care – as of March 2022.
Unlike previous years, Cordova said, the 2022 report also notes the growing popularity of remote work, with many companies using it as a tool when deciding on flexible working policies. their activity.
“One of the consequences of this pandemic is the notion of work from anywhere, with more and more employees asking employers if they can support that,” he said.
“Companies now want some information on what the economic impact of that relocation will be, and that’s how we see mobility expand,” he added.
Here is a list of the 10 most expensive cities for expats, as found by Mercer.
The most expensive cities for expats
- Hong Kong, Hong Kong (SAR)
- Zurich, Switzerland
- Geneva, Switzerland
- Basel, Switzerland
- Bern switzerland
- Tel Aviv, Israel
- New York City, USA
- Singapore, Singapore
- Tokyo, Japan
- Beijing, China
Ankara, Turkey (227th) ranked as the least expensive city to work abroad, followed by Bishkek, Kyrgyzstan (226th), Dushanbe, Tajikistan (225th), Islamabad, Pakistan (226th), Dushanbe, Tajikistan (225th), Islamabad, Pakistan (226th), 224) and Karachi, Pakistan (223rd).
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