In many economies throughout the globe as we reach 2023, the economic repercussions of the Russia-Ukraine conflict and the continuing COVID-19 epidemic are still being felt. However, the first and present capitals of Pakistan are among the most affordable places for foreigners to reside.
The war factor is anticipated to reduce income growth and increase unemployment rates in various nations, along with aggressive national monetary policies and tighter global financial conditions.
The difficulties that governments throughout the globe confront are exacerbated by high levels of debt and sustained core inflation.
In light of this, foreign workers continue to have a high cost of living, with changes in inflation and currency rates having a direct effect on their wages and savings, especially for those who go abroad often.
Hong Kong has once again been named the most costly city for foreign workers in a new Cost of Living City Ranking by Mercer.
Since the previous year, Singapore has advanced six spots to take over second rank, moving Zurich down to third. Notably, the rankings include Karachi and Islamabad, both in Pakistan, among the least costly cities.
Hong Kong and Singapore continue to be the most costly places to live in for foreign assignees, despite the fact that just two of the top 10 most expensive cities are currently found in Asia.
In instance, Hong Kong continues to hold the title of most expensive city in the world, with Singapore coming in second.
On the opposite end of the spectrum, Pakistani cities Islamabad and Karachi, both of which are situated, are listed as the two least costly places to live.
Five cities from Europe made the top ten list for all of the world.
With Zurich sliding to third place and three other Swiss towns, Geneva, Basel, and Bern, also appearing on the list, Switzerland is well-represented.
London, Vienna, Amsterdam, Prague (which has risen 27 positions since last year), and Helsinki are other more pricey European cities.
Tel Aviv, which is ranked tenth internationally, is the most expensive city for hiring foreign workers in the Middle East.
When compared to the previous year, the rankings of the cities of Dubai (18) and Abu Dhabi (43) in the United Arab Emirates have significantly improved.
Saudi Arabia’s Jeddah and Riyadh have also risen on the worldwide list.
The most costly city for hiring foreign workers in Central and South America is Nassau, which is followed by San Juan and Buenos Aires.
Notably, a number of the cities in the area have moved up the rankings significantly, with San Jose and Mexico City moving up 76 and 70 positions, respectively.
Los Angeles, San Francisco, and New York City continue to hold the top three spots for most expensive cities in North America.
Since the previous year, all of the US cities on the list have improved, with Detroit, Houston, and Cleveland seeing the most gains.
The three cities in Africa with the highest cost of living are Bangui, Djibouti, and Luanda.
The least costly cities in the area are, however, Windhoek, Durban, and Tunis. Cairo is still quite close in the standings after falling 63 positions since last year.
The persistent economic difficulties and variations in inflation and currency rates that have an influence on the financial security of expatriate workers are reflected in the worldwide cost of living ranking.
Businesses and people will need to carefully evaluate the cost of living when making choices on overseas assignments and employment opportunities as economies continue to recover and adjust.