Turkmenistan’s capital city Ashgabat has become the world’s most expensive city for foreign workers,pushing Hong Kong to second place , according to this year’s Mercer Cost of Living Survey.
The annual report has ranked 209 cities across five continents by measuring the comparative cost of more than 200 items, including housing, transportation, food, clothing, household goods, and entertainment.
The survey used New York City, ranked 14 on the list, as the base city and currency movements were measured against the US dollar.
Mercer's latest 2021 Cost of Living City Rankings has revealed. Beirut ranked third, climbing 42 positions up the ranking as a result of a severe and extensive economic depression due to the escalation of several crises — the country's largest ever financial crisis, COVID-19 and the Port of Beirut explosion in 2020.
Tokyo and Zurich each dropped one spot from third and fourth respectively to fourth and fifth positions, and Shanghai ranked sixth, up one place from last year. Singapore moved from fifth place to seventh.
Mumbai (78) is India's most expensive city but dropped 18 places in this list.
Effectively, Mumbai remains the most expensive city for expatriates surveyed in India and among the top 20 in Asia.After Mumbai, New Delhi is ranked 117, Chennai 158, Bengaluru 170 and Kolkata 181.
Interestingly, three of the five Indian cities have dropped in rankings this year. After Mumbai, which dropped from 60th to 78th, New Delhi dropped 16 places this year, Chennai was down 15 places. Bengaluru gained one place while Kolkata gained four spots.
The figures for Mercer's cost of living and rental accommodation cost comparisons are derived from a survey conducted in March 2021. Exchange rates from that time and Mercer's international basket of goods and services from its Cost of Living Survey have been used as base measurements.
"The cost and quality of living a city has to offer is directly tied to its attractiveness as a place to live and work. Multinational employers monitor our data closely and over time to ensure they can offer compensation packages to an internationally mobile talent pool which are fair and globally competitive," said Kate Fitzpatrick, Mercer's Global Mobility Practice Leader for the UK & Ireland.
Asia Pacific
More than half of the top 10 most expensive cities are located in Asia. Ashgabat climbed one position in this year's ranking, making it the costliest city for international employees, both in Asia and globally. Hong Kong (2), Tokyo (4), Shanghai (6), Singapore (7) and Beijing (9) followed suit. Mumbai (78) is India's most expensive city but dropped 18 places in this year's ranking due to a relatively weak Indian rupee in comparison with other cities in the ranking.
Australian cities have climbed in this year's ranking as the local currency rose against the USD. Sydney (31), Australia's most expensive ranked city for international employees, experienced a climb of 35 places, followed by Melbourne (59) with a climb of 40 places.
The Middle East and Africa
With this ongoing process, there has been negative price movement in both Dubai (42) and Abu Dhabi (56). Beirut is the costliest city in the Middle East for international employees, jumping 42 positions to third in the global ranking. N'Djamena (13), Lagos (19) and Libreville (20) are first, second and third costliest cities in Africa for international employees. Lusaka, ranked 208, is the least costly city in Africa.
Europe
Three European cities are among the top 10 list of most expensive locations. Number five in the global ranking, Zurich remains the most costly European city, followed by Geneva (8) and Bern (10).
The strengthening of local currencies resulted in several European cities climbing in the ranking, with Paris climbing to 33. The United Kingdom remained steady with London (18) & Birmingham (121) rising one and eight places, respectively.
"UK cities have remained relatively stable in the ranking this year, due to low inflation and the fact the Pound has remained strong against all major currencies during the pandemic," said Kate Fitzpatrick, Mercer's Global Mobility Practice Leader for the UK & Ireland.
"While there has been limited cross-border mobility over the last 12 months due to the travel restrictions associated with COVID-19, organisations are now beginning to plan for a revival of activity. While the mix of permanent transfers, long and short term assignments, business travellers, and international remote workers has changed, the need for – and indeed the desire of – employees with valuable and in-demand skills to mobilise remains strong.