4Prices and Earnings
Update August 2010
5Prices and Earnings
Update August 2010
Prices remain high in Oslo, Zurich and Geneva
Oslo, Zurich and Geneva are still among the most expensivecities that we surveyed. Factoring in rents, New York, Oslo andGeneva remain the cities with the highest cost o living.Auckland and Sydney climbed nearly 20 places in the rankingsowing to the dramatic appreciation o the New Zealand (NZD)and Australian dollar (AUD), respectively, versus the US dollar(32% / 30%) to join the top third o the world‘s most expen-sive cities.Other currencies to appreciate considerably versus the US dol-lar were the South Arican rand (ZAR; 31%), Indonesian rupiah(IDR; 29%) and Canadian dollar (CAD; 21%). Higher infationrates also caused Johannesburg, Jakarta, Montreal and Torontoto climb by around 20 places; Montreal and Toronto are nowamong the top 10 most expensive cities.
Price dierentials narrowing within Europe
The price dierential between western and eastern Europenarrowed rom roughly 35% at the start o 2009 to about26%, either including or excluding rent. The price dierentialbetween North and South America has been similar; the SouthAmerica basket now being approximately 23% cheaperexcluding rent, or 32% including rent, than North Americancities; although there has been little change in this price dier-ential since the rst quarter o 2009. Venezuela‘s decline in therankings (see below) was oset by São Paulo, Rio de Janeiroand Bogotá advancing on currency appreciation o 29% (Bra-zilian real, BRL) and 29% (Colombian peso, COP), respectively,versus the US dollar.
Major devaluation o Venezuelan currency
Caracas is still exhibiting major infation, resulting in the big-gest interim price change or any city surveyed at +40 percent.On the other hand the Venezuelan Bolivar devaluated by nearly50 percent versus the US dollar. This large devaluation causedCaracas to all by more than 30 places in the price ranking.
Excl. rentNew York = 100Incl. rentNew York = 100
Oslo120.494.3Zurich114.189.1Geneva112.490.0Tokyo105.788.5Copenhagen103.678.2New York100.0100.0Stockholm97.173.1Toronto95.276.1Montreal92.071.9London91.375.5Singapore90.277.7Sydney89.974.4Helsinki89.970.8Paris89.173.1Vienna89.165.7Dubai88.081.2Los Angeles87.772.4Munich87.365.7Luxembourg87.067.0Istanbul86.868.9Frankurt85.966.8Sao Paulo84.865.5Dublin84.769.7Rome83.066.5Tel Aviv82.662.7Auckland82.165.3Chicago81.871.9Lyon81.459.3Brussels81.364.9Barcelona80.462.8Rio de Janeiro79.960.1Hong Kong79.774.1Miami78.168.5Madrid77.960.7Amsterdam77.760.3Berlin76.656.6Milan75.661.7Seoul75.360.9Athens71.953.9Nicosia70.554.9Lisbon70.054.7Bangkok67.347.0Taipei66.652.2Moscow65.859.6Johannesburg65.648.8Doha64.259.1Shanghai63.948.8Jakarta63.349.4Caracas62.552.6Ljubljana62.146.5Bogota61.347.4Warsaw61.146.4Manama59.448.7Budapest59.045.3Prague57.543.6Beijing57.242.4Riga56.940.1Kiev56.741.9Bratislava56.243.2Lima56.139.4Tallinn55.039.7Santiago de Chile54.840.5Vilnius53.139.1Mexico City53.040.1Buenos Aires51.437.8Soa50.637.9Cairo50.135.3Nairobi49.637.9Kuala Lumpur48.833.7Delhi45.734.0Bucharest45.435.2Manila41.630.4Mumbai37.530.3
The cost o a weighted shop-ping basket o goods gearedto western European con-sumer habits, containing 122goods and services.
Ranking relative to the index(price level excluding rent)
Switzerland and Denmark: Wages remain high
Those interested in high wages should still consider moving toZurich, Copenhagen or Geneva. Switzerland is still by ar theworld leader in terms o both net and gross wages. Strikingly,payroll deductions are relatively low in Switzerland. Grosswages in Copenhagen, or example, are as high as in Zurich,but net wages are roughly 30% lower.Sydney gained the most in the rankings, moving rom 20th to6th place, thanks to the strengthening o the Australian dollar(AUD) versus the US dollar, as mentioned above. Stockholm‘sranking was also boosted by a strengthening currency, risingrom 17th place in 2009 to 8th owing to a 12% rise in theSwedish krona (SEK). Ireland declined on infation o –2.2%and a contraction in gross domestic product (GDP) o roughly5%. These negative gures caused Dublin to slip nine places.
Highest GDP growth in China and Taiwan
The highest growth rates or gross domestic product were re-corded by China (10.7%) and Taiwan (9.1%). Despite currencyappreciation versus the US dollar (CNY 1%; TWD 7%), andpositive infation rates (China 1.6%; Taiwan 2.3%), there waslittle change in the rankings or Hong Kong (down one),Shanghai (down one), Beijing (up one) and Taipei (down two).
grossNew York = 100netNew York = 100
Zurich121.8126.0Copenhagen118.288.0Geneva117.3113.1Oslo102.191.5New York100.0100.0Sydney93.198.6Los Angeles90.991.9Stockholm82.478.6Munich82.272.3Luxembourg80.290.6Chicago80.178.8Miami79.281.9Toronto78.981.6Frankurt78.871.7Brussels78.671.6Montreal77.781.8Tokyo77.186.4Helsinki75.176.9Dublin74.687.5London73.378.0Amsterdam73.165.6Berlin70.867.6Vienna68.069.7Paris65.466.8Lyon64.567.3Milan60.057.3Nicosia53.866.1Auckland53.358.2Madrid52.159.5Barcelona51.958.2Rome47.544.8Athens43.844.9Tel Aviv43.750.0Lisbon42.145.9Ljubljana40.933.9Dubai39.754.9Seoul37.439.8Hong Kong34.943.9Johannesburg34.335.7Sao Paulo33.839.1Taipei33.340.0Moscow30.535.8Singapore30.035.0Rio de Janeiro29.731.4Istanbul26.727.7Manama25.533.8Prague24.426.4Tallinn23.826.2Warsaw23.723.5Bogota20.023.5Budapest19.717.0Bratislava19.621.7Vilnius19.118.4Doha18.125.0Riga17.918.7Lima17.118.8Kuala Lumpur16.519.2Santiago de Chile16.218.3Buenos Aires15.918.2Shanghai15.817.0Bucharest14.514.6Caracas13.416.8Beijing13.114.5Soa12.613.1Bangkok12.216.0Kiev11.513.0Cairo11.512.4Mexico City9.010.9Delhi8.610.3Nairobi8.28.9Jakarta7.89.5Manila6.77.8Mumbai6.37.6
Calculation is based onthe wage, social insurancecontribution and workinghours data or 15 occupationsworldwide to arrive at a netwage level ater taxes andpayroll deductions.To calculate the wage index,we looked at exchange ratesand infation, actoring in thatproductivity gains accountor a portion o economicgrowth, which are passed onto employees in the orm oreal wage increases (GDPgrowth weighted by a actoro 0.5).
Ranking relative to the indexon a gross basis