MANAGING GLOBAL ECONOMIC CHALLENGES
INTRODUCTION:
The modern day global economy is a highly interconnected one. With the increased connectivity the challenges before the global economy has achieved an altogether new dimension. On one hand is the positive impact of instant access to the global information network. On the other hand, market volatility is using the economic inter linkage channels to spread like wildfire.
The International Monetary Fund revised down the estimated world growth rate for 2008. This was a fall out of the US sub prime crisis. At present economies through out the world are facing stock market volatility and rising unemployment figures as an after effect of the US crisis.
As per estimates, around one billion people worldwide survive on less than a dollar per day. Over one billion do not have access to clean water. Basic sanitation facilities are absent for around 2.4 billion people. Around 5 million children worldwide die from starvation.
CHALLENGES BEFORE THE GLOBAL ECONOMY:
To sum up, the challenges before the global economy are by no means simple. Timely intervention in the form of appropriate policies and fiscal help from the world bodies are needed to tide over the crisis. No less important is the political will needed for the seamless implementation of the policies.
1.Poverty
Sub-Saharan Africa has been witness to the most severe form of poverty. Nearly 50% of the population survives on less than $1-a-day. Malnutrition, internal conflicts, dreadful diseases like AIDS and improper governmental measures are the main reasons behind this extreme poverty.
As far as poverty goes, it is the Southeast Asia that comes next to sub-Saharan Africa. Around 85% of the total population of the Southeast Asia survives on below $2-a-day.
Despite 50% of population living under $2-a-day, the number of poor people in Eastern Asia and Pacific has declined significantly in recent past. It is mainly due to the social and economic progress achieved by China over the passage of time.
When it comes to Latin America, inequality in income distribution resulting from poverty is a matter of great concern.
Some 300 million of India’s people still live in abject poverty, and another 300 million hover precariously above the poverty line. One challenge is to reach the poor with programs and policies that work
2. Inflation
Considering the failure of US sub prime market and the subsequent recession in US economy, controlling the increasing rate of inflation is the greatest challenge that the world is confronting for some time now. The Indian and Chinese governments are taking care of the inflationary situations very seriously. In Europe, interest rates have been maintained at higher side to keep inflation under control. Fiscal policy measures like reducing government expenditure and increasing rate of taxation can also be used to check inflation. Attempts are on to bring about regulatory changes to face the challenge of inflation.
3. Inequality
Globalization is considered by many to be the main cause behind the perpetration of an increased income inequality in wide areas of the globe. However, an increased trade globalization has only worked towards the eradication of this inequality. The need of the hour is policies, which will ensure that the proceeds from technological innovation and globalization are distributed among the cross section of a country’s population. Developing countries are primarily agriculture based and they can promote agricultural exports for reaping the benefits of trade liberalization.
4. Climate change
Environmentalists all over the world are trying their best to protect the planet from the adverse effects of climate change. The European Union has played a crucial role in these movements. The primary objective of the Convention has been to urge the developed nations to check the emission of greenhouse gas. The target regarding greenhouse gas emission that has been set in Kyoto Protocol needs to be achieved within the period of 2008-2012.
The European Climate Change Program or ECCP in another major initiative towards environment protection. However, to control the emission of greenhouse gas it is necessary to create general awareness among the common people. Substantial change in energy system, use of environment-friendly technologies in production, alternative energy efficient fuels, minimum use of fossil fuels and change in the pattern of living are the key factors that can bring about positive changes in environment.
5. Rising food prices
The urban poor will be affected the most due to this rising food prices. In most of the sub Saharan country, the common trend is that the farmers leave their land and head to other lines of production in the urban areas.
According to the World Food Program, the countries that are most affected are Eritrea, Gambia, Togo, Cameroon, Niger, Senegal, Zimbabwe, Haiti, Myanmar, Yemen, Cuba etc.
6.Trade”- key to lower food prices
Opening up of economy or trade liberalization can help to reduce food prices. Different countries have adopted different measures of trade in order to deal with the escalating food prices. Saudi Arabia has resorted to import tax cuts on wheat from 25% to zero. Tariff is also decreased for dairy products, vegetable oil and poultry. India slashed its tariffs on maize and edible oils. Export of rice was also stopped leaving out the high value basmati. For the last 2-3years India has to fill the demand supply mismatch in food through imports. There are high exporting countries like Ukraine, which are also imposing export restrictions on its food products.
7. Agflation in the global economy:
Structural changes within an economy are an important reason behind Agflation. There is a rise in per capita income in the populated countries like India and China. Consumption of food grains as feedstock has also increased. According to the International Grain Council, the world grain production would reach 1660m tones in 2008, which exceeds the previous year by 90m tones. Even then demand is likely to outdo supply. Inflation in the agricultural sector can be attributed mostly to crops like coffee, corn, wheat, and soybeans, sugar, cocoa and meat and poultry products.
8. Trend in demand for and supply of food grains:
It is estimated that the world population will rise by 800 million per decade till 2025. The production of food grains is expected to rise to 2.67 billion by 2025 so as match the demand level. It is also estimated that there will be a regional mismatch in the demand of food grains across different regions.
9. Role of internaitional organisations:
The objective of international organization is to study, collect and propagate information, setting up of laws that are internationally accepted. The international organizations also help in cooperation between different countries by setting up negotiation deals between them. The international Organizations also help in technical assistance.
The International Organizations play an important role in collecting statistical information, analyzing the trends in the variables, making a comparative study and disseminate the information to all other countries.
There are some international organizations that perform certain supervisory functions. The function of the international organizations is setting up multilateral or bilateral agreements between countries.
Another function, that has assumed importance in the recent times, is lending out technical cooperation to the member countries. Amongst all the roles and activities of the international organizations, the most important is negotiating and setting up multilateral agreements. Minimizing the transaction costs can strengthen the cooperation between different countries.
10. Public health care and primary education:
The other challenge is to make public service providers, and the entire state apparatus, much more responsive and accountable to all citizens, especially the poor. Today, basic public services are deteriorating. These include such frontline services as public health care and primary education. And, the poor are the most affected
Response to the Challenges of the 21st Century:
poverty reduction – providing opportunities for a better life for the poor. This challenge is particularly acute in Asia which is home to two-thirds of the world’s poor Ongoing globalization – Globalization opens up opportunities for developing countries, facilitating wider and faster access to capital, technologies, know-how and markets. On the other hand, globalization also comes with associated risks. Globalization may bring in financial volatility, and even economic and social disruptions. Asian countries should not, however, turn their backs to globalization. Instead, they should try to prepare themselves to ease the integration into the global market. Promotion of regional cooperation – Regional cooperation beyond national boundaries contributes to realizing economies of scale, enhancing complementarity among neighboring countries, and ensuring regional peace and stability.
Conclusion:
India’s GDP growth has soared from 5-6% a few years ago to 9% today. If this growth is sustained, as the 11th Plan hopes to do, average living standards will rise and poverty will be reduced. India will become a middle-income country in three years time instead of six, crossing the Bank’s current threshold of $875 per capita income to do so. Its per capita income will double in the next seven years, instead of ten. In fact, by 2025, India’s average per capita income could well surpass Thailand’s and reach where Malaysia is today. This will amount to creating fifty East Asian “miracles” within two decades. For a young Indian entering the work force today, this will be about the time she takes to reach her peak productive years.
Submitted By,
Ms. G.P.Divya
&
Ms. S.Padmavathi
Lecturers (M.B.A)
SSM Academy of Textile Management, Erode.
The ongoing impact of the credit crisis, slowing global economies, falling house prices, global stock market and exchange rate volatility, together with the US dollar strengthening against most currencies are all factors contributing to a major change in the global cost of living rankings.
The International Cost of Living Comparison comprises indexes for each of 276 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
The latest international cost of living ranking, together with the overall cost of living index is as follows:
Rank Location (Overall Cost of Living Index New York=100)
1 Japan, Tokyo (126.03)
2 Norway, Oslo (123.74)
3 Denmark, Copenhagen (121.11)
4 Switzerland, Geneva (119.59)
5 Brazil, Brasilia (118.53)
6 United Kingdom, London (118.23)
7 Greenland, Nuuk (117.14)
8 Switzerland, Zurich (116.18)
9 Hungary, Budapest (114.36)
10 Russia, Moscow (113.41)
11 Nigeria, Lagos (112.69)
12 Ireland, Dublin (112.65)
13 New Caledonia, Noumea (112.43)
14 France, Paris (112.38)
15 Chad, N’Djamena (111.3)
16 Italy, Milan (111.19)
17 Cameroon, Douala (111.06)
18 Liechtenstein, Vaduz (110.89)
19 San Marino, San Marino (110.78)
20 Monaco, Monaco (109.83)
21 Czech Republic, Prague (109.81)
22 Austria, Vienna (109.68)
23 Slovakia, Bratislava (109.31)
24 Isle of Man, Douglas (108.97)
25 Poland, Warsaw (107.63)
26 Bermuda, Hamilton (107.53)
27 Italy, Rome (107.29)
28 Finland, Helsinki (107.07)
29 Australia, Sydney (106.52)
30 USA, San Francisco Calif (104.53)
31 Cote D’Ivoire, Abidjan (104.4)
32 Venezuela, Caracas (104.02)
33 China, Hong Kong (103.43)
34 United Arab Emirates, Dubai (103.36)
35 Croatia, Zagreb (103.29)
36 Angola, Luanda (103.27)
37 Belgium, Brussels (103.19)
38 Netherlands, Amsterdam (102.33)
39 Jersey, Saint Helier (102.24)
40 Papua New Guinea, Port Moresby (102.22)
41 Korea Republic of, Seoul (101.94)
42 Iceland, Reykjavík (101.66)
43 Ukraine, Kiev (101.2)
44 Guernsey, St Peter Port (100.68)
45 Qatar, Doha (100.64)
46 Central African Republic, Bangui (100.58)
47 Spain, Madrid (100.26)
48 USA, San Jose Calif (100.13)
49 Falkland Islands, Stanley (100)
50 USA, New York NY (100)
51 Sweden, Stockholm (99.76)
52 USA, Boston Mass (99.63)
53 Cameroon, Yaounde (98.84)
54 Mali, Bamako (98.74)
55 Benin, Cotonou (98.6)
56 Germany, Berlin (98.18)
57 Micronesia, Palikir (97.98)
58 Gabon, Libreville (97.77)
59 Canada, Toronto (97.39)
60 Germany, Bonn (96.38)
61 Vatican City, Vatican City (96.23)
62 Australia, Melbourne (95.88)
63 Australia, Canberra (95.88)
64 Estonia, Tallinn (95.08)
65 Turkey, Ankara (94.87)
66 Singapore, Singapore (94.6)
67 Guinea-Bissau, Bissau (94.24)
68 USA, Los Angeles Calif (93.93)
69 Palau, Melekeok (93.85)
70 Luxembourg, Luxembourg (93.77)
71 Canada, Vancouver (93.48)
72 Portugal, Lisbon (92.84)
73 Australia, Perth (92.82)
74 Germany, Frankfurt (92.81)
75 Azerbaijan, Baku (92.76)
76 Gibraltar, Gibraltar (92.33)
77 Comores, Moroni (92.04)
78 USA, Washington DC (91.8)
79 USA, Philadelphia Pa (91.49)
80 Nauru, Yaren (91.16)
81 Kazakhstan, Almaty (90.99)
82 Bahrain, Manama (90.82)
83 USA, San Diego Calif (90.7)
84 Bahamas, Nassau (90.63)
85 Togo, Lome (90.11)
86 Taiwan, Taipei (90.07)
87 Haiti, Port-au-Prince (90)
88 Senegal, Dakar (89.57)
89 Saint Helena, Jamestown (89.26)
90 USA, Baltimore Md (89.25)
91 United Kingdom, Glasgow (88.88)
92 Djibouti, Djibouti (88.45)
93 Niger, Niamey (88.38)
94 Zambia, Lusaka (88.36)
95 USA, Seattle Wash (88.3)
96 Andorra, Andorra la Vella (88.13)
97 Vietnam, Hanoi (88.03)
98 Tonga, Nuku’Alofa (87.34)
99 Gambia, Banjul (87.23)
100 United Arab Emirates, Abu Dhabi (87.16)
101 Cayman Islands, George Town (86.81)
102 Sudan, Khartoum (86.64)
103 Greece, Athens (86.59)
104 Barbados, Bridgetown (86.5)
105 USA, Portland Ore (86.1)
106 Sierra Leone, Freetown (85.92)
107 Equatorial Guinea, Malabo (85.89)
108 USA, Chicago Ill (85.73)
109 Romania, Bucharest (85.55)
110 USA, Miami Fla (85.54)
111 Marshall Islands, Majuro (85.41)
112 Cyprus, Nicosia (85.26)
113 Malta, Velletta (84.99)
114 Moldova, Chisinau (84.89)
115 Ghana, Accra (84.89)
116 United Kingdom, Birmingham (84.76)
117 Canada, Montreal (84.37)
118 Algeria, Algiers (84.01)
119 Israel, Jerusalem (83.82)
120 Australia, Brisbane (83.29)
121 Burkina Faso, Ouagadougou (82.92)
122 Lebanon, Beirut (82.74)
123 Jordan, Amman (82.41)
124 Guinea, Conakry (82.16)
125 Jamaica, Kingston (82.11)
126 Philippines, Manila (82.07)
127 Georgia Republic of, Tbilisi (82.03)
128 Congo Democratic Rep, Kinshasa (81.84)
129 Seychelles, Victoria (81.78)
130 Indonesia, Jakarta (81.76)
131 USA, Las Vegas Nev (81.75)
132 Lithuania, Vilnius (81.67)
133 Vanuatu, Port Vila (81.35)
134 Grenada, Saint George’s (81.23)
135 Trinidad and Tobago, Port-of-Spain (81.13)
136 Mozambique, Maputo (80.82)
137 New Zealand, Auckland (80.71)
138 Samoa, Apia (80.64)
139 Congo, Brazzaville (80.14)
140 Armenia, Yerevan (80.13)
141 Albania, Tirana (80.1)
142 Martinique, Fort-de-France (80.09)
143 Latvia, Riga (79.92)
144 Thailand, Bangkok (79.86)
145 Sao Tome and Principe, Sao Tome (79.79)
146 USA, Denver Colo (79.74)
147 China, Beijing (79.73)
148 Fiji, Suva (78.99)
149 Slovenia, Ljubljana (78.85)
150 Canada, Ottawa (78.82)
151 Tuvalu, Funafuti (78.78)
152 Myanmar, Yangon (78.51)
153 Puerto Rico, San Juan (78.49)
154 Kenya, Nairobi (78.4)
155 USA, Phoenix Ariz (78.26)
156 Mauritius, Port Louis (78.25)
157 Madagascar, Antananarivo (78.24)
158 USA, Tampa Fla (78.22)
159 Serbia, Belgrade (78.13)
160 Kiribati, South Tarawa (78.06)
161 Guam, Hagatna (77.8)
162 Brunei, Bandar Seri Begawan (77.72)
163 Uruguay, Montevideo (77.41)
164 Colombia, Bogota (77.23)
165 USA, Atlanta GA (76.99)
166 Morocco, Rabat (76.93)
167 USA, Milwaukee Wis (76.77)
168 Paraguay, Asuncion (76.49)
169 Mexico, Mexico City (76.13)
170 USA, Columbus Ohio (76.06)
171 India, Mumbai (76.04)
172 Tanzania, Dar es Salaam (76)
173 Solomon Islands, Honiara (75.93)
174 USA, Cleveland Ohio (75.84)
175 USA, Detroit Mich (75.74)
176 Liberia, Monrovia (75.63)
177 USA, Austin Tex (75.57)
178 USA, Dallas Tex (75.47)
179 USA, Jacksonville Fla (75.47)
180 Australia, Adelaide (75.39)
181 Kuwait, Kuwait City (75.22)
182 Bulgaria, Sofia (75.14)
183 Saudi Arabia, Riyadh (75.08)
184 USA, Pittsburgh Penn (74.54)
185 Timor-Leste, Dili (74.29)
186 Iran, Tehran (74.24)
187 USA, Indianapolis Ind (74.13)
188 USA, Fort Worth Tex (73.64)
189 Somalia, Mogadishu (73.49)
190 Maldives, Male (73.48)
191 USA, Charlotte NC (73.47)
192 USA, Houston Tex (73.36)
193 Chile, Santiago (73.01)
194 Mauritania, Nouakchott (72.99)
195 Botswana, Gaberone (72.86)
196 Cape Verde, Praia (72.81)
197 USA, El Paso Tex (72.61)
198 Uganda, Kampala (72.25)
199 Afghanistan, Kabul (72.13)
200 Antigua and Barbuda, Saint John’s (72.04)
201 USA, St Louis MO (71.93)
202 Malaysia, Kuala Lumpur (71.82)
203 Peru, Lima (71.7)
204 Korea Democratic Republic of, Pyongyang (71.62)
205 Kosovo, Pristina (71.55)
206 India, New Delhi (71.4)
207 Belarus, Minsk (71.28)
208 Malawi, Lilongwe (71.24)
209 Saint Kitts and Nevis, Basseterre (71.07)
210 USA, Memphis Tenn (71.02)
211 India, Chennai (70.76)
212 Kyrgyzstan, Bishkek (70.29)
213 Burundi, Bujumbura (70.07)
214 Macedonia, Skopje (70.02)
215 USA, San Antonio Tex (70.02)
216 Guatemala, Guatemala City (69.74)
217 Honduras, Tegucigalpa (69.57)
218 Saint Vincent and the Grenadines, Kingstown (69.5)
219 Canada, Calgary (69.46)
220 India, Calcutta (69.31)
221 India, Hyderabad (68.85)
222 Dominica, Roseau (68.79)
223 Rwanda, Kigali (68.75)
224 Panama, Panama City (68.58)
225 Guyana, Georgetown (68.58)
226 China, Shanghai (68.48)
227 Syria, Damascus (67.99)
228 Montenegro, Podgorica (67.75)
229 Laos, Vientiane (67.43)
230 Ethiopia, Addis Ababa (66.87)
231 Cuba, Havana (66.61)
232 Belize, Belmopan (66.33)
233 Nicaragua, Managua (65.89)
234 Nepal, Kathmandu (65.67)
235 Dominican Republic, Santo Domingo (64.93)
236 Tunisia, Tunis (64.87)
237 Suriname, Paramaribo (64.75)
238 India, Bangalore (64.56)
239 South Africa, Johannesburg (64.51)
240 Costa Rica, San Jose (64.47)
241 Egypt, Cairo (64.18)
242 El Salvador, San Salvador (63.34)
243 Swaziland, Mbabane (63.11)
244 Mongolia, Ulaanbaatar (62.85)
245 South Africa, Pretoria (62.71)
246 Oman, Muscat (61.61)
247 Saint Lucia, Castries (61.2)
248 Pakistan, Lahore (59.48)
249 Tajikistan, Dushanbe (59.25)
250 South Africa, Cape Town (58.99)
251 Namibia, Windhoek (58.89)
252 Sri Lanka, Colombo (58.51)
253 Pakistan, Islamabad (58.33)
254 Iraq, Baghdad (58.25)
255 Pakistan, Karachi (57.72)
256 Lesotho, Maseru (57.49)
257 Argentina, Buenos Aires (57.46)
258 Bangladesh, Dhaka (57.03)
259 Bhutan, Thimphu (56.78)
260 Bolivia, La Paz (56.66)
261 China, Macao (56.41)
262 South Africa, Durban (56.07)
263 Bosnia and Herzegovina, Sarajevo (54.35)
264 Ecuador, Quito (53.83)
265 Uzbekistan, Tashkent (53.03)
266 Libya, Tripoli (52.74)
267 China, Shenzhen (51.65)
268 Eritrea, Asmara (50.72)
269 China, Dalian (50.54)
270 China, Wuhan (49.93)
271 China, Guangzhou (47.28)
272 Cambodia, Phnom Penh (45.65)
273 Yemen, Sanaa (45.6)
274 Turkmenistan, Ashgabat (38.77)
275 China, Tianjin (29.5)
276 Zimbabwe, Harare (17.12)
International Cost of Living Rankings
International cost of living rankings are the result of comparing the cost of an expatriate’s personal budget, using the local prices for the same defined quantities of the same goods and services in each country throughout the world.
Our findings show that the compound impact of the multifaceted global economic trends that impact each country in one way or another, are contributing to rapid substantial changes in the relative cost of living of countries around the world. The changes in relative cost of living are large and have occurred in a relatively short period of time. The reason for this is due to the fact that so many economic crises are occurring simultaneously. 2008 saw the housing bubble burst followed by the failure of a number of global fund / asset management, insurance and banking giants. Some have been liquidated or taken over; others have been bailed out with government funds. In 2009 we have seen the continued fall in house prices which many believe have yet to bottom out. Stock prices and market indexes are down to levels last seen a decade or more ago. The trend towards decreased inflation and lower interest rates continues in developed and developing markets. We are also experiencing exchange rate volatility with a number of large economies seeing their currency weaken considerably in the past year. The economic impact is continuing to spread around the globe. We are currently seeing a truly global recession with reduced demand for manufacturing inputs and outputs as well as reduced energy demand and large scale job losses.
This study of 276 global locations covered every country in the world. The study comprised the cost of several hundred items that expatriates typically spend their pay on, grouped into 13 Basket Groups. The findings as at 1 April 2009 have been compared to the previous findings of 1 December 2008. The Index uses New York as the base (New York = 100). An index greater than 100, means that the cost of living is higher than New York, an index less than 100, means that the cost of living is lower than New York.
Geneva has a cost of living index of 110 for example. That means that on average, goods and services that cost $100 in New York, cost $110 in Geneva. Each city is ranked according to their overall cost of living index which includes the cost of all basket groups.
A cost of living index increases or decreases based on the local price of the goods and services used in the study and the ruling exchange rate. As a general principle, a country with a currency that has increased against other currencies (stronger currency) and which has relatively high local inflation (rapid/large price increases), will generally experience an increase in cost of living compared to other countries. On the other hand, a country with a currency that has decreased against other currencies (weaker currency) and which has relatively low local inflation will generally experience a decrease in cost of living compared to other countries. It is important to note that we are talking about relative changes. Take London as another example. As recently as December 2008, London was still ranked the 6th most expensive place in the world for expatriates to live. As at April 2009 it is the 23rd most expensive place in the world for expatriates. That does not mean that the local cost of living for expatriates living in London has decreased. What it does mean is that relative to other places in the world, London is no longer as expensive as it was last year. What makes London’s cost of living relatively lower than it was is mainly due to the increase in the cost of living elsewhere together with the weaker British Pound.
These relative changes have a substantial impact on expatriate employees. An expatriate working in a high cost of living – strong currency country such as Hong Kong where the Hong Kong Dollar is pegged to the US Dollar illustrates this point. The high cost of living makes it difficult to save due to high local prices; Household (Accommodation including utilities) in particular is very expensive. However, an expatriate working in Hong Kong will now likely find that remitting money back home provides greatly increased spending power at home. In the past year the Hong Kong Dollar has increased 15% against the Malaysian Ringgit, and 30% against the Indonesian Rupiah and the Australian Dollar.
The Top 10 Most Expensive Places for Expatriates to Live
Tokyo has retained its status as the most expensive city in the world for expatriates to live. The cost of living index for Tokyo has increased from 126 in December 2008 to 143 as at 1 April 2009, and the Yen has strengthened against the US Dollar. At the other end of the scale, Harare has retained its status as the least expensive city in the world and is ranked 276 with an index of just 17 and a currency which is still in free-fall. Tokyo is ranked 1st for Healthcare expenses, 2nd for Groceries and 2nd for Household (Accommodation including utilities).
Hong Kong is now ranked 2nd overall having climbed from 33rd place in December 2008. Its cost of living index has increased from 103 to 121 and is ranked 1st for Household expenses and 2nd for Healthcare. It is interesting however to note that Hong Kong is not expensive in all categories. It is ranked 202nd for Alcohol & Tobacco, 226th for Recreation & Culture, 227th for Education, and 247th for Furniture & Appliances.
Lagos is the 3rd most expensive city in the world for expatriates, having previously been ranked 11th. It is ranked 1st for Groceries and for Furniture & Appliance expenses, 6th for Healthcare, and 18th for Restaurants, Meals Out and Hotels.
Caracas has moved substantially up the rankings to 4th, having been ranked just 32nd in December 2008. It is ranked 1st for Education expenses, 5th for Healthcare, and 6th for Household expenses (Accommodation including utilities).
Port Moresby in Papua New Guinea is the 5th ranked overall most expensive city for expatriates due to most goods and services being imported from Australia. Port Moresby is ranked 6th for Recreation & Culture, 7th for Communication and for Healthcare, and 8th most expensive for Clothing.
Geneva has dropped slightly to 6th, having been ranked 4th in December 2008. It is ranked 3rd most expensive for Transport expenses, 11th for Recreation & Culture, 15th for Healthcare, and 20th for Clothing.
Dubai has moved into the top 10 most expensive places in the world for expatriates to live for the first time. Dubai is now ranked 7th, substantially up from 34th in December 2008. Its cost of living index has increased from 103 to 109 since December 2008. It is ranked 1st for Restaurants Meals Out and Hotel expenses, 6th for Clothing, 11th for Healthcare, and 16th for Groceries. Dubai is currently ranked 4th for Household expenses (Accommodation including utilities), however evidence is emerging that this will decrease significantly in the next quarter as it has been hit relatively hard in the property sector with falling property prices and rentals.
Doha has moved up in the global rankings faster than any other city. In December 2008, Doha was ranked the 45th most expensive city for expatriates, it is now 8th. The overall cost of living index has moved up from 101 to 109, equal to that of Dubai. It is ranked 2nd for Restaurants, Meals Out and Hotel expenses, 3rd for Clothing, 7th for Household expenses (Accommodation including utilities), 8th for Groceries as well as for Recreation and Culture, and 10th for Healthcare.
Denmark has dropped slightly to being the 9th most expensive place in the world for expatriates, having been ranked 3rd in December 2008. It is ranked 3rd most expensive for Groceries, 5th for Transport, and 15th for Furniture and Appliances.
Hamilton in Bermuda completes the top 10 moving from 26th in December despite the overall cost of index remaining 108. Hamilton is ranked 4th most expensive for both Education and Healthcare, 10th for Personal Care, 11th for Household expenses (Accommodation including utilities), and 15th for Groceries.
The full overall cost of living ranking list, sourced from xpatulator.com as at 1 April 2009 is as follows:
Rank and Location
1 Japan, Tokyo
2 China, Hong Kong
3 Nigeria, Lagos
4 Venezuela, Caracas
5 Papua New Guinea, Port Moresby
6 Switzerland, Geneva
7 United Arab Emirates, Dubai
8 Qatar, Doha
9 Denmark, Copenhagen
10 Bermuda, Hamilton
11 Angola, Luanda
12 Switzerland, Zurich
13 Russia, Moscow
14 Solomon Islands, Honiara
15 Cameroon, Douala
16 Chad, N’Djamena
17 Taiwan, Taipei
18 Liechtenstein, Vaduz
19 USA, New York NY
20 New Caledonia, Noumea
21 Greenland, Nuuk
22 Ireland, Dublin
23 United Kingdom, London
24 France, Paris
25 Norway, Oslo
26 Italy, Milan
27 San Marino, San Marino
28 USA, San Francisco Calif
29 Monaco, Monaco
30 Austria, Vienna
31 Bahamas, Nassau
32 Central African Republic, Bangui
33 Nauru, Yaren
34 USA, Boston Mass
35 Finland, Helsinki
36 Italy, Rome
37 Kazakhstan, Almaty
38 Cote D’Ivoire, Abidjan
39 Bahrain, Manama
40 Micronesia, Palikir
41 Isle of Man, Douglas
42 Haiti, Port-au-Prince
43 USA, San Jose Calif
44 Cameroon, Yaounde
45 Djibouti, Djibouti
46 Palau, Melekeok
47 Guinea-Bissau, Bissau
48 Azerbaijan, Baku
49 Benin, Cotonou
50 Slovakia, Bratislava
51 Belgium, Brussels
52 Netherlands, Amsterdam
53 Sao Tome and Principe, Sao Tome
54 Jersey, Saint Helier
55 Mali, Bamako
56 Gabon, Libreville
57 United Arab Emirates, Abu Dhabi
58 Croatia, Zagreb
59 Singapore, Singapore
60 Ghana, Accra
61 Spain, Madrid
62 Ukraine, Kiev
63 USA, Philadelphia Pa
64 Cayman Islands, George Town
65 Sierra Leone, Freetown
66 Germany, Berlin
67 Czech Republic, Prague
68 USA, San Diego Calif
69 Jordan, Amman
70 Trinidad and Tobago, Port-of-Spain
71 USA, Los Angeles Calif
72 USA, Washington DC
73 Estonia, Tallinn
74 USA, Baltimore Md
75 Falkland Islands, Stanley
76 Saudi Arabia, Riyadh
77 Guernsey, St Peter Port
78 Comores, Moroni
79 Sudan, Khartoum
80 Germany, Bonn
81 Vatican City, Vatican City
82 Canada, Toronto
83 Timor-Leste, Dili
84 Hungary, Budapest
85 USA, Seattle Wash
86 Brazil, Brasilia
87 Lebanon, Beirut
88 USA, Miami Fla
89 Vanuatu, Port Vila
90 Luxembourg, Luxembourg
91 Jamaica, Kingston
92 Australia, Sydney
93 Kuwait, Kuwait City
94 Moldova, Chisinau
95 Congo Democratic Rep, Kinshasa
96 Germany, Frankfurt
97 Tuvalu, Funafuti
98 Iceland, Reykjavík
99 Barbados, Bridgetown
100 Portugal, Lisbon
101 Mozambique, Maputo
102 Senegal, Dakar
103 Canada, Vancouver
104 Niger, Niamey
105 China, Beijing
106 Ethiopia, Addis Ababa
107 Turkey, Ankara
108 Togo, Lome
109 Equatorial Guinea, Malabo
110 Martinique, Fort-de-France
111 Armenia, Yerevan
112 USA, Chicago Ill
113 Liberia, Monrovia
114 Gibraltar, Gibraltar
115 Sweden, Stockholm
116 Somalia, Mogadishu
117 USA, Portland Ore
118 Israel, Jerusalem
119 Malta, Velletta
120 Puerto Rico, San Juan
121 Canada, Calgary
122 Rwanda, Kigali
123 Guam, Hagatna
124 Burkina Faso, Ouagadougou
125 Zambia, Lusaka
126 Andorra, Andorra la Vella
127 Cyprus, Nicosia
128 USA, Las Vegas Nev
129 Samoa, Apia
130 Saint Helena, Jamestown
131 Tanzania, Dar es Salaam
132 Greece, Athens
133 Poland, Warsaw
134 Maldives, Male
135 Malawi, Lilongwe
136 Thailand, Bangkok
137 Indonesia, Jakarta
138 USA, Jacksonville Fla
139 Antigua and Barbuda, Saint John’s
140 Gambia, Banjul
141 United Kingdom, Glasgow
142 Lithuania, Vilnius
143 Belarus, Minsk
144 USA, Dallas Tex
145 Australia, Canberra
146 India, Mumbai
147 Australia, Melbourne
148 USA, Denver Colo
149 Algeria, Algiers
150 Georgia Republic of, Tbilisi
151 Honduras, Tegucigalpa
152 USA, Atlanta GA
153 USA, Cleveland Ohio
154 Canada, Montreal
155 USA, Milwaukee Wis
156 Congo, Brazzaville
157 Guinea, Conakry
158 Saint Kitts and Nevis, Basseterre
159 USA, Detroit Mich
160 Panama, Panama City
161 Latvia, Riga
162 Uganda, Kampala
163 Korea Republic of, Seoul
164 USA, Charlotte NC
165 Marshall Islands, Majuro
166 Australia, Perth
167 USA, Phoenix Ariz
168 USA, Columbus Ohio
169 USA, Austin Tex
170 Madagascar, Antananarivo
171 USA, Tampa Fla
172 United Kingdom, Birmingham
173 Afghanistan, Kabul
174 Grenada, Saint George’s
175 Vietnam, Hanoi
176 USA, Indianapolis Ind
177 USA, St Louis MO
178 Saint Vincent and the Grenadines, Kingstown
179 Peru, Lima
180 Syria, Damascus
181 USA, Fort Worth Tex
182 Slovenia, Ljubljana
183 Mauritania, Nouakchott
184 USA, El Paso Tex
185 Philippines, Manila
186 China, Shanghai
187 USA, Memphis Tenn
188 USA, Pittsburgh Penn
189 Belize, Belmopan
190 India, New Delhi
191 Romania, Bucharest
192 Guatemala, Guatemala City
193 Iran, Tehran
194 Cape Verde, Praia
195 India, Chennai
196 USA, Houston Tex
197 Canada, Ottawa
198 Costa Rica, San Jose
199 Dominica, Roseau
200 Nicaragua, Managua
201 Guyana, Georgetown
202 Dominican Republic, Santo Domingo
203 Bulgaria, Sofia
204 237 Suriname, Paramaribo
205 Cuba, Havana
206 Oman, Muscat
207 India, Calcutta
208 Mongolia, Ulaanbaatar
209 Tajikistan, Dushanbe
210 India, Hyderabad
211 Burundi, Bujumbura
212 USA, San Antonio Tex
213 Myanmar, Yangon
214 Uruguay, Montevideo
215 Paraguay, Asuncion
216 Albania, Tirana
217 Brunei, Bandar Seri Begawan
218 Mauritius, Port Louis
219 Fiji, Suva
220 Egypt, Cairo
221 Australia, Brisbane
222 El Salvador, San Salvador
223 Korea Democratic Republic of, Pyongyang
224 Laos, Vientiane
225 Mexico, Mexico City
226 Morocco, Rabat
227 India, Bangalore
228 Saint Lucia, Castries
229 New Zealand, Auckland
230 Kiribati, South Tarawa
231 Kosovo, Pristina
232 Kenya, Nairobi
233 Serbia, Belgrade
234 Bangladesh, Dhaka
235 Pakistan, Lahore
236 Bolivia, La Paz
237 Colombia, Bogota
238 Botswana, Gaberone
239 Sri Lanka, Colombo
240 Pakistan, Islamabad
241 Turkmenistan, Ashgabat
242 Kyrgyzstan, Bishkek
243 Macedonia, Skopje
244 Pakistan, Karachi
245 Australia, Adelaide
246 Montenegro, Podgorica
247 Chile, Santiago
248 Malaysia, Kuala Lumpur
249 China, Macao
250 Eritrea, Asmara
251 Iraq, Baghdad
252 Argentina, Buenos Aires
253 Bosnia and Herzegovina, Sarajevo
254 Uzbekistan, Tashkent
255 Ecuador, Quito
256 Nepal, Kathmandu
257 Tunisia, Tunis
258 Yemen, Sanaa
259 Bhutan, Thimphu
260 South Africa, Johannesburg
261 China, Shenzhen
262 Tonga, Nuku’Alofa
263 China, Dalian
264 South Africa, Pretoria
265 Lesotho, Maseru
266 China, Wuhan
267 Namibia, Windhoek
268 Libya, Tripoli
269 South Africa, Cape Town
270 China, Guangzhou
271 Seychelles, Victoria
272 South Africa, Durban
273 Cambodia, Phnom Penh
274 Swaziland, Mbabane
275 China, Tianjin
276 Zimbabwe, Harare