Mercer cost of living survey: Hong Kong still the most expensive
Hong Kong remains most expensive city in the world for international employees, according to Mercer’s 2024 Cost of Living City Ranking. In Africa, the costliest places to live are Bangui in Central African Republic Djibouti, which both rank in the top 20. CNBC Africa is joined by Spiros Fatouros, CEO, Marsh McLennan Africa for more.
Tue, 18 Jun 2024 11:15:00 GMT
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AI Generated Summary
- Hong Kong retains its position as the most expensive city for international employees, driven by high rental costs and economic importance.
- Lagos records the largest drop in rankings due to the devaluation of the Naira currency, reflecting economic challenges in Nigeria.
- Employers are adapting compensation packages to address rising housing costs and other factors affecting the attractiveness of cities to expatriates.
Hong Kong has once again emerged as the most expensive city in the world for international employees, according to Mercer's 2024 Cost of Living City Ranking. The survey, which examines 400 assignment locations worldwide, highlighted the high cost of rental accommodation in Hong Kong and other Asian cities as a key driver for their top rankings. In Africa, Bangui in the Central African Republic and Djibouti ranked in the top 20, showcasing the diverse global landscape of living expenses. Spiros Fatouros, CEO of Marsh McLennan Africa, joined CNBC Africa to discuss the implications of the rankings. The report also noted significant shifts in rankings for various cities, with Lagos experiencing the largest drop of 178 places to 225th in the world. This drop was primarily attributed to the devaluation of the Naira currency, making it a more affordable city in dollar terms. The drastic change in Lagos' ranking reflects the economic challenges facing Nigeria, including the removal of fuel subsidies and ongoing inflation. The survey compares the cost of over 200 items in different locations, using New York City as the base for currency comparisons. Fatouros explained that factors like inflation and exchange rate fluctuations directly impact the pay and savings of internationally mobile employees, requiring companies to adapt their compensation packages. The rising cost of housing in many cities globally has forced employers to consider creative solutions such as housing subsidies to attract and retain talent. While cost remains a significant factor in determining the attractiveness of a city, other aspects like quality of life, infrastructure, and risks also play a crucial role. Looking ahead, changes in global macroeconomic conditions, including expected interest rate cuts, could impact future city rankings. However, Fatouros emphasized that successful locations for businesses are those that offer a balance of flexible governance, quality of life, and reasonable living costs.
