posted on 11/21/2020 14:25 / updated on 11/21/2020 14:26
Mexico City suffered a drop in this year’s ranking, as well as other Latin American regions
The covid-19 pandemic brought some changes in the ranking of the most expensive cities on the planet, according to an annual survey by The Economist Intelligence Unit, the analysis and research arm of The Economist magazine.
According to the ranking, which analyzes the cost of living worldwide, the three most expensive cities today are Zurich (Switzerland), Paris (France) and Hong Kong (China).
Last year, Singapore tied for first place. In 2020, however, it dropped to fourth place.
The survey revealed that prices in Singapore fell in 2020. Scholars attribute this to the fact that many foreigners left the region as a result of the coronavirus health crisis.
The report by The Economist magazine revealed that prices have risen in most Chinese cities, owing to recent tensions between the United States and China. The trade war between the two countries tested the resilience of supply chains and raised prices for consumers.
“Asian cities have traditionally dominated rankings in recent years, but the pandemic has reorganized rankings this year,” said Upasana Dutt, director of the publication’s cost of living.
Bangkok, for example, fell 20 positions and now ranks 46th among the most expensive cities.
Most expensive cities in Brazil, Rio de Janeiro and São Paulo went down to 119th position this year.
High values in Europe
American, African and Eastern European cities have become cheaper since last year, while costs in Western European cities have risen.
The price increase in this part of Europe is justified because in the region there are four of the ten most expensive cities in the world, such as the financial capital of Switzerland and the capital of France, which are at the top of the list.
According to the survey, the main cause of the variation in the cost of living in many countries was the impact of the pandemic on the dollar. According to Upasana Dutt, the dollar lost value, while currencies in Western Europe and North Asia gained strength. The survey points out that Paris and Zurich joined Hong Kong at the top of the list due to the rise in the euro and the Swiss franc.
Of the European cities, Geneva and Copenhagen are in seventh and ninth place, respectively.
The biggest price increase occurred in the capital of Iran, Tehran, which rose 27 positions in the ranking, due to United States sanctions, which affected the supply of products.
The situation in Latin America
Two Brazilian cities are among those that had the biggest price drops this year: Rio de Janeiro and São Paulo continue to be the most expensive in Brazil. The two moved back 23 positions.
Mexico City and Lima, Peru, also fell in the ranking and are currently in positions 73 and 77, respectively.
The Economist’s report uses data adopted by multinationals to calculate the cost of business trips and packages to foreigners.
The survey’s worldwide cost of living index compared prices for 138 goods and services in 133 major cities in September.
In general, prices remained stable compared to last year, but the report says that the values of essential goods have been more linear than non-essential ones.
Logistical challenges have affected prices and even products. There was, for example, an increase in pasta prices in some regions and a shortage of products such as toilet paper in some places.
In ten categories assessed by the report, tobacco and recreation recorded the largest price increases. Clothing values registered the sharpest drop, as many people stopped spending on clothing in the midst of the pandemic.
“In terms of consumer goods, there was a sharp rise in computer prices,” said Dutt. The main reason for this increase would be the growth in sales of electronics, as many companies started to adopt remote work.
The 10 most expensive cities in the world
1. Zurich (Switzerland)
2. Paris (France)
3. Hong Kong (China)
5. Tel-Aviv (Israel)
6. Osaka (Japan)
7. Geneva (Switzerland)
8. New York (USA)
9. Copenhagen (Denmark)
10. Los Angeles (USA)
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