According to global consultancy Mercer’s annual Cost of Living report, the Turkmenistan capital Ashgabat, Hong Kong, and Beirut are the three most expensive cities in the world for foreign workers this year.
Hong Kong dropped from first to second place last year. While Beirut gained 42 places to third as a result of “a severe and extensive economic depression due to the escalation of several crises – the country’s largest financial crisis, Covid-19 and the Port of Beirut explosion in 2020”, Mercer said yesterday.
Asia accounts for more than half of the top ten most expensive cities this year. Tokyo and Zurich both lost one position to fourth and fifth rankings, respectively. Shanghai rose one point to sixth place. According to Mercer, Singapore dropped from fifth to seventh place. Geneva rounded out the top ten in eighth place, followed by Beijing and Bern.
The list of 209 cities compares the costs of over 200 goods, such as accommodation, transportation, and food. This year’s rating demonstrates how Covid-19 has shifted the score as nations grapple with the economic consequences of the pandemic.
The results of Mercer’s study are to calculate the cost of packages for employees on overseas assignments. They are affected by factors like currency changes, cost inflation for products and services, and lodging costs.
Top most expensive cities chart
Dubai is at 42nd, down from 23rd the year before. Abu Dhabi ranked down to 56th, from 39th the year before. According to Mercer’s survey, the cheapest city in the world is Bishkek, Kyrgyzstan’s capital. Then, Lusaka, Zambia’s capital, and Tbilisi, Georgia. Riyadh was named the most costly city in the GCC, moving up two places from the previous year to 29th place.
Jeddah rose from 104th to 94th, while Manama, Bahrain, dropped 19 places to 71st. Muscat, the Omani capital, fell 12 places to 108th place. Kuwait City dropped two places to 115th rank, while Doha, Qatar’s capital, dropped 21 places to 130th place, according to the study. According to the Mercer study, New York is the most expensive city in the United States, followed by Los Angeles, San Francisco, Honolulu, and Chicago.
Meanwhile, a stronger euro has pushed other European cities up the rankings, including Paris, which has risen to 33rd position. The United Kingdom remained stable, with London (18) and Birmingham (121) both climbing one and eighth positions respectively.
Mumbai remains India’s most costly city despite slipping 18 places due to a relatively weak Indian currency in contrast to other cities in Asia in this year’s ranking.
As the Australian dollar strengthened against the US dollar, cities in the index increased this year. Sydney is Australia’s most costly city for foreign workers, climbing 35 positions to number 31 on the index. Then comes Melbourne, which increased 40 spots to number 59.