Are the most expensive cities in the world a reflection of the wealth of their inhabitants? Why is the cost of living so high in cities like Hong Kong or New York? What influence does political and economic stability have when it comes to cataloging these cities?
Hong Kong, New York and Geneva occupy the podium of the three most expensive cities to live in, according to the ECA International ranking. Among the most noteworthy aspects are the large presence of Asian cities and the collapse of European cities in the ranking.
What aspects are valued to decide which are the most expensive cities in the world?
Aspects such as price levels, the shopping basket, the strength of the national currency, rental prices, the absence of war conflicts and transportation costs (especially fuel) are decisive when establishing which They are the most expensive cities in the world.
As far as the shopping basket is concerned, it should be noted that special importance is attached to the price of food and household items. Likewise, everyday issues such as the price we pay in an establishment when ordering a cup of coffee are valued. Thus, in Hong Kong, the most expensive city in the world, a coffee will cost 5.21 dollars compared to the 3.30 dollars that we will be charged in the Australian city of Sydney.
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Other equally decisive factors in this ranking are security, educational level, tax levels and environmental factors.
Thus, the classification of the most expensive cities in the world to live, is as follows:
1-Hong Kong
2-New York
3-Gin
4-London
5-Tokyo
6-Tel Aviv
7-zurich
8-Shanghai
9-Canton
10-Seoul
asia gain weight
It should be noted that, in this ranking, five of the ten most expensive cities in the world are in Asia. The Asian continent could qualify as the most expensive continent.
This situation, among other things, is explained by the fact that there is an increasing demand for luxury products in Asia, especially in China. In fact, in our article “Why does the luxury sector grow in times of crisis?” We anticipated that China could monopolize 60% of the demand for luxury products. Hence, cities like Shanghai and Guangzhou are among the top ten.
The case of Chinese cities is not only explained by the increase in demand for luxury products. Although inflation is high in Chinese cities, it is still lower when compared to other cities on the same continent. The strength of a currency such as the Chinese yuan, which has remained strong against other currencies, has contributed to this.
As regards Hong Kong, which not only tops the ECA International ranking, but also that of the Economist Intelligence Unit, it should be noted that the fact that it references its data to the US dollar contributes to its outstanding ranking.
Asian cities are not only among the most expensive, but also among the fastest rising in this particular ranking, with Colombo, the capital of Sri Lanka, climbing from 162nd to 149th.
Europe falls in the ranking
Although Europe is a continent associated with the first world and prosperity, its cities have lost places in the ranking. Large and historic cities like Rome, Madrid and Brussels have collapsed. Even Paris, a city that was supposed to have a high cost of living, has been left out of the top thirty cities.
The reason for this collapse is due to several reasons, although the instability of the euro and its weakness against the dollar has had a lot to do with its representation on this list.
Only London and Swiss cities such as Geneva and Zurich are among the ten most expensive. Neither Great Britain nor Switzerland have the euro as their national currency, hence the negative impact on the list has been considerably attenuated.
Other countries on the European continent, such as Russia, have also fallen dramatically, since Moscow is in 62nd place and Saint Petersburg is in 147th place. The reason for these positions is easy to explain, since Russia is immersed in a long war with Ukraine and is being subjected to rigorous sanctions that are weighing down its economy.
Africa and America
It becomes clear that the cities of Asia, Europe and North America are the most expensive to live. On the contrary, the cities of Africa and South America, a true reflection of the weakness of their economies, do not occupy such buoyant positions in the ranking.
In this regard, there are measures of a political nature that can help African countries rise, as is the case with Angola, which is implementing measures of a strong political nature to achieve greater stability. By implementing reforms for political stability, the currency is strengthened, economic prosperity is boosted, and the cost of living increases.
As for the American continent, New York ranks as the most expensive city. For its part, Buenos Aires ranks as the most expensive Latin American city, still remaining far from the top positions.
