- The cost of living in Hong Kong is the highest in the world.
- Hong Kong’s rival, Singapore, assumed the eighth position on the list.
- There is a lot of competition for the best and brightest minds worldwide, leading to staff outsourcing.
Hong Kong has been the world's most expensive city for International employees for the third consecutive year. A poll by Moneyzine.com ranked Hong Kong, Zurich, Geneva, Basel, and Bern as the world's most expensive cities.
This information is essential for people considering a new job opportunity anywhere in the world, thus very significant to Moneyzine.com's readers.
Luke Eales, the CEO of Moneyzine, attributes the high cost of living to inflation and COVID-19.
Inflation in Hong Kong, spurred by fuel costs, is a major catalyst for high living costs. Besides, the city is still struggling with COVID-19. Unlike Singapore and other cities, Hong Kong maintained severe social isolation and travel restrictions.Luke Eales, the CEO of Moneyzine
The unsustained resilience of the Hong Kong dollar, tied to the value of the US dollar, in contrast to other currencies, has contributed to the city's high cost of living. The Hong Kong dollar is weaker compared to the US dollar, therefore, raising the inflation level in the city.
Moneyzine compared data between March 2021 and March 2022 during the survey. The critical indicators included home items, food, apparel, recreational goods, and services. Alcohol, tobacco, and transport expenses were all considered.
Hong Kong’s Desirability Is Going Down
Singapore's rental expenses are rising due to the high number of individuals moving to or returning to the city-state from Hong Kong. Yet, price increases on many fronts, such as electricity and gasoline, have put Hong Kong's regional rival in the eighth position.
Most companies are witnessing talent outflow as experts return to their home countries or relocate to new ones. To many, Singapore and Dubai provide the best alternative. Thus, they are reaping the benefits of the Hong Kong exodus.
Hong Kong is becoming less desirable daily as it remains expensive. Thus, the firms in the city have to pay extra to recruit international employees.
Even in times of soaring inflation, cities compete for the attention of tourists and residents alike. So, where can one find the best foreign talent and enterprises currently?
Prices of Essential Goods and Services
Moneyzine based its conclusions on the impact of inflation on ordinary goods and services.
It discovered that prices in Hong Kong had risen by 3 percent as of March 2022. The site holds that the city's high fuel costs are driving this increase.
When determining a city's attractiveness, many factors come into play. While living costs are an essential consideration, so is housing affordability. Moreover, the quality of life, measured by different metrics such as safety and sanitation and environmental friendliness or educational standards, is vital.
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