Tokyo Ranked 1st In Mercer's Most Expensive Cities For Expatriate

Sunday, July 12, 2009

Mercer's Most Expensive Cities For ExpatriateThe decline in global economic activity and changes in currency exchange rates of the world also causes changes in the order of the most expensive cities in the world for expatriates. The more strengthened currency of a country, the cost of living in that country will be higher.

According to survey results from Mercer, a consulting organization of human resources, Tokyo has become the most expensive city for the expatriates, replacing Moscow. Besides Tokyo, Osaka take second place, rising rapidly from the rank ninth. Geneva also increase the ranking to fourth position, followed by Hong Kong. Meanwhile, Johannesburg, South Africa, replacing Asuncion in Paraguay as the cheapest city.

In the Mercer's survey, New York, used as reference. All cities surveyed compared with New York, while the movement of currency exchange rate compared to the U.S. dollar.

The survey covers 143 cities across the world and compare the price of 200 types of goods and services at each location, such as housing, transportation, food, clothing, household goods and entertainment.

This survey was the most comprehensive cost of living survey and used to help multinational companies and governments in determining the amount of the cost of living for expatriates.

The decline in the global economy have changed dramatically many real estate markets. In the period March 2008-March 2009 exchange rate fluctuations occur, especially the U.S. dollar against several currencies in the world. Euro, for example, weakened against the U.S. dollar. In the same period, British pounds has weakened 26 percent against the U.S. dollar.

Tokyo JapanWeakening euro in the period to make the majority of the city in Europe down in the ranking. Warsaw into a city that had fallen most dramatically, from position 35 to be-to-113. London and Oslo which previously ranked in the major 10 falls down to position 13 and 10.

Same trend seen in Australia, New Zealand, and India. Indian rupee exchange rate against the U.S. dollar had fallen years ago and all of Indian cities came down from the ranked as the consequences. New Delhi had fallen from the rank 55 to become 65 and Mumbai's ranking 48 to 66.

Cities In Asia Increases

Conversely, the position of cities in China, Japan, and the Middle East has increased the ranking. Strengthening exchange rate of U.S. dollar, Japanese yen, and the rise in oil prices makes the cities in those developing countries is more expensive. New York enters the range of these 10 most expensive cities, up dramatically from rangking 22 to 8.

Beijing ChinaBecause the Chinese currency Renminbi strengthened compared with other currencies, the more expensive cost of living in large cities in China. Beijing, for example, rose from rank 11 to rank 9, entering the 10 most expensive cities in the world. Shanghai, Shenzhen, Guangzhou and got the rank 12, 22, and 23.

Nathalie Constantin-Métral, senior analyst at Mercer, said, "As a direct impact from the weakening economy over the last few years, we observed the occurrence of significant fluctuation in the strong currency of the world."

"This thing is affecting the order of ranking in this year. Many currencies, including the euro, weakened against the U.S. dollar and cause a decrease in ranking of the expensive cities in Europe. With such close relation with the global economy and currency, multinational companies will continue to get the impacts from global crisis."
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