Every year the Economist Intelligence Unit (EIU) conducts a Worldwide Cost of Living Survey to determine the most expensive cities in the world.
Last year, at around this time, Singapore was in the top spot, while Paris came in a close second.
Conversely, Caracas in Venezuela was declared the most affordable city in the world, and when the recession hit us earlier this month, I seriously considered moving there.
Anyway, we digress. The latest survey is out, reports BBC:
The EIU report saw Osaka knock Paris out of its top three most expensive cities as a stronger yen made Japan’s third biggest city more costly to live in. The researchers looked at more than 400 prices across 160 products and services. These included cars and electronic goods, which have seen major supply disruptions in China.
The survey was conducted before the coronavirus became a pandemic, which means that next year’s results could look very different.
“Cities that rely on tourism should see some downward pressure on prices. So Singapore and Hong Kong might not hold the top spot going forward. We could see a different city on top,” said Simon Baptist, the EIU’s chief economist.
The impact of the coronavirus has shaken the world economy, with the travel and tourism industries among the hardest hit. Hong Kong and Singapore are two of the cities that could see a big drop in revenue as demand for leisure activities, restaurants and accommodation plummets. This weaker demand could drive down prices, making these cities cheaper for their inhabitants.
On the other hand, the cost of living in previously affordable cities could rise as measures to slow the spread of the virus impact businesses and local economies.
It looks like we’ll be emerging from the pandemic to find a very different world from the one we knew before.
[source:bbc]
