World's most expensive cities for 2021 (and where SA ranks)
Category Market News
Ashgabat in Turkmenistan is the most expensive city in the world for overseas workers, according to this year's Mercer Cost of Living Survey.
The annual report ranks 209 cities based on the comparative cost of expenses including housing, transportation, food and entertainment, with New York City used as a baseline comparison. And record high inflation has impacted a number of cities across the globe, as the Covid-19 pandemic amplifies the cost of living for expats who live and work away from home.
The Turkmenistan capital, which was number two on last year's list, has dealt with an ongoing financial crisis, resulting it beating last year's most expensive city Hong Kong (now in second place as the priciest city for 2021). And while South Africa's only two cities on the list, Cape Town and Johannesburg, have previously languished towards the bottom due to the rand exchange weakness - they have each moved up list, reflecting the pandemic's impact on economies of the world, driving up the cost of living.
Cape Town moved up the list 9 spots from number 187 to 178. Johannesburg climbed 8 spots from number 184 to 192 most expensive city in the world.
As the Euro gained almost 11% against the US dollar, European cities were ranked comparatively more expensive than their US counterparts. New York City (number 6 in 2020 now ranking 14 in 2021) has dropped out of the Mercer top 10 altogether, while Paris climbed the rankings from number 50 in 2020 to number 33 in 2021.
The appreciation of the Australian Dollar saw Aussie cities like Sydney (from number 66 in 2020 to 31 in 2021) and Melbourne climb up Mercer's ranking from number 99 in 2020 to 59 in 2021.
As for the cheapest cities for overseas workers, Mercer's ranking pinpoints Tbilisi, Georgia (number 207), Lusaka, Zambia (number 208) and Bishkek, Kyrgyzstan (number 209).
Mercer's 2021 cost of living city ranking:
1. Ashgabat (Turkmenistan)
2. Hong Kong (China)
3. Beirut (Lebanon)
4. Tokyo (Japan)
5. Zurich (Switzerland)
6. Shanghai (China)
7. Singapore
8. Geneva (Switzerland)
9. Beijing (China)
10. Bern (Switzerland)
11. Seoul (South Korea)
12. Shenzhen (China)
13. N'Djamena (Chad)
14. New York City (United States)
15. Tel Aviv (Israel)
16. Copenhagen (Denmark)
17. Guangzhou (China)
18. London (United Kingdom)
19. Lagos (Nigeria)
20. Libreville (Gabon)
Mercer highlights that while the cost of living is one of the key factors influencing international assignment package rates, it says there are many additional factors to consider when selecting a location.
"To gain competitive advantage in the global war for talent, foreign investments and business, companies need to strike the right balance between cost containment, employee experience and business needs. Factors such as disease and sanitation standards, safety, education, climate, and physical remoteness can often affect the success of a foreign assignment or investment."
In this infographic Mercer gives a comparative perspective of the cost and quality of living.
Author: P24/Mercer
