ISLAMABAD
The economic aftershocks of the Russia-Ukraine crisis and the ongoing COVID-19 pandemic are still being felt in many economies around the world as they enter 2023. However, the current and the first capital of Pakistan are one of the cheapest cities to live in for expats.
The war factor, coupled with aggressive national monetary policies and tightening global financial conditions, are expected to result in slower income growth and rising unemployment rates in several countries. High debt levels and persistent core inflation add to the complexities faced by nations worldwide.
Against this backdrop, the cost of living for international employees remains significantly impacted, with the fluctuating inflation and exchange rates directly affecting their pay and savings, particularly for those who are internationally mobile, says a report by a private television channel Wednesday.
In a recent Cost of Living City Ranking by Mercer, Hong Kong has once again emerged as the most expensive city for international employees. Singapore climbed six positions since last year to secure the second spot, pushing Zurich to third place.
Notably, Karachi and Islamabad, both located in Pakistan, are listed among the least expensive cities in the ranking. While Asia now houses only two out of the top ten most expensive cities for international assignees to live in, Hong Kong and Singapore remain at the top of the list.
Hong Kong, in particular, retains its position as the costliest city globally, followed by Singapore in second place. On the other end of the spectrum, Karachi and Islamabad, both located in Pakistan, are ranked as the two least expensive locations in the world.
Europe dominates the global top ten list, with five cities making the cut. Switzerland is well represented, with Zurich dropping to the third position, and three other Swiss cities, including Geneva, Basel, and Bern, also featuring on the list.
Other costly European cities include London, Vienna, Amsterdam, Prague (which has climbed 27 spots since last year), and Helsinki. In the Middle East, Tel Aviv holds the title of the costliest city for international employees, ranking eighth globally.
The United Arab Emirates cities of Dubai (18) and Abu Dhabi (43) have seen significant increases in their rankings compared to last year. Meanwhile, Riyadh and Jeddah in Saudi Arabia have also climbed the global list.
Moving to Central and South America, Nassau is ranked as the most expensive location for international employees, followed by San Juan and Buenos Aires. Notably, several cities in the region have made significant upward moves in the ranking, with San Jose and Mexico City climbing 76 and 70 spots, respectively.
In North America, New York City maintains its position as the most expensive city, followed by Los Angeles and San Francisco. All US cities in the ranking have seen their positions rise since last year, with Detroit, Houston, and Cleveland experiencing the most substantial increases.
In Africa, Bangui, Djibouti, and Luanda are the highest-ranking cities in terms of cost of living. On the other hand, Windhoek, Durban, and Tunis are among the least expensive cities in the region. Cairo, despite its drop of 63 spots since last year, is still relatively close in the rankings.
The global cost of living ranking reflects the ongoing economic challenges and fluctuations in inflation and exchange rates that impact the financial well-being of international employees.
As economies continue to recover and adapt, it will be essential for businesses and individuals to carefully consider the cost of living when making decisions related to international assignments and job opportunities.
