Zurich is the 4th most expensive city for expats to live worldwide, mainly due to the strength of the Swiss Franc against the US Dollar. However despite the fact that there have been moderate price increases in most of Europe, the Euro has weakened against the US Dollar which has resulted in lower USD prices, pushing Euro cities down in the global ranking.

Africa

Overall African countries are some of the poorest and least developed in the world, with relatively low local cost of living expenses, however the cost of importing and transporting the international standard goods that expatriates expect to purchase in the cities in this region makes it extremely expensive to maintain the lifestyle that they are used to.

Despite the fact that the Angolan New Kwanza (AOA) is approximately 32% weaker against the US Dollar compared to a year ago, extremely costly safe expatriate accommodation, imported produce and international private schooling has kept Luanda as most expensive city to live in the African region. However the dramatic weakening of the Kwanza has resulted in Angola dropping from being the most expensive country in the world in 2015, to third most expensive in 2016. A rented house in a guarded community (recommended with a Medium Risk Rating, the threat of violent crime is the principal risk in the major cities and across the country) can cost between US$8 000 and US$12 000 per month, international private schooling up to US$40 000 a year and the requirement for either a 4x4 to navigate the roads (which are being improved) or for a driver can be costly.

Xpatulator.com has been created to calculate expatriate pay using online calculators and an extensive database of cost of living and hardship indexes, for 780 international locations. The database is updated quarterly. Subscribers use this information to ensure expatriate salary spending power is maintained when on an international assignment. Salary spending power is affected by cost of living, hardship and exchange rate differences between the home and host location.

Asmara in Eritrea is the second most expensive city in Africa. This is mainly due to the fact that the Nakfa (ERN) is fixed against the US Dollar which has strengthened during 2015. Asmara is particularly expensive for groceries, furniture and appliances, and transport. The economy of Eritrea is small (less than 650,000 people) and is largely based on subsistence agriculture, with 80% of the population involved in farming and herding. Drought has often created difficulty in the farming areas. As a result, the cost of importing and transporting international goods and services that expatriates expect makes it extremely expensive to maintain an expat lifestyle in Eritrea.

Freetown in Sierra Leone is the third most expensive city in Africa. The economy of Sierra Leone is slowly emerging from a protracted civil war and is showing signs of a successful transition. The country is very rich in minerals and has relied on mining, especially diamonds, for its economic base. The country is among the top 10 diamond producing nations in the world, and mineral exports remain the main foreign currency earner. The cost of living in Freetown has been increasing in global terms for several years. In 2013 Freetown was ranked 10th in Africa, 8th in 2014, and 4th in 2015. The Sierra Leone Leone (SLL) has strengthend during 2015 against a stronger US Dollar. As a result when comparing local prices in US Dollars Freetown has become more expensive in global terms. In addition maintaining an expatriate lifestyle in Sierra Leone is challenging. The security risk for expatriates is high, the infrastructure is poor, driving conditions hazardous, and electricity and water is unreliable.

Accra in Ghana is the fourth most expensive city in Africa. The economy of Ghana is primarily based on resources such as gold, timber, cocoa, diamond, bauxite, and manganese. The Ghanaian New Cedi (GHS) has weakend approximately 20% against the US Dollar during 2015 making imports of expatriate goods and services more costly, in addition the inflation rate is currently over 17% as a result of local price increases.

America

Caracas in Venezuela (the world's fifth largest exporter of oil) is the most expensive expat destination in the Americas and in the worldwide rankings.

Hamilton is the second most expensive location in the Americas, in 10th place globally, this is due to the high price of property and the fact that most items have to be transported to Bermuda adding a great deal to the cost of expatriate items.

New York (Manhattan) NY is the third most expensive location in the Americas, the most expensive city in the USA in 11th place worldwide, this is mainly due to the highly priced rental property market. Overall locations across the United States have climbed the rankings during 2015 as a result of the strong US Dollar against most other global currencies. The second most expensive city in the USA is Honolulu, HI ranked 6th in the region and 27th in the world, followed by San Jose in California ranked 32nd in the world. In comparison the highest ranked city in Canada is Toronto, ranked 130th most expensive in the world in 2016, down 45 places from 2015.The Canadian Dollar lost almost 20% against the US Dollar during 2015.

Completing the top 5 in the Americas are Nassau ranked 4th, and George Town in the Cayman Islands 5th.

Asia Pacific

Hong Kong has retained the top spot as the overall most expensive in Asia-Pacific (and 5th most expensive in the world) mainly due to the extremely high housing costs, as well as high cost of schooling and limited space available making rentals high. However, when you exclude costs related to housing, education, medical and transport, Hong Kong falls out of the top ten city rankings for this region. This indicates that Hong-Kong is not the most expensive place for other basket groups. Even though the current Government is committed to promoting economic development, improving people’s livelihood, and taking forward constitutional development for more effective governance, the overall high cost of living has resulted in living standards stagnating. In addition the Hong Kong Dollar (HKD) has appreciated against most currencies in the past year, owing to its peg to the US Dollar, driving up the cost of living locally and contributing to Hong Kong maintaining it's place at the top of the Asia-Pacific rankings.

Singapore remains the second most expensive city in the Asia-Pacific region for expatriates and tops the region rankings when costs related to housing, education, medical and transport are excluded. The Singapore Dollar (SGD) has lost only 7% against the US Dollar in the past year, far lower than most other countries that are not pegged to the USD.

Tokyo has regained third place from Shanghai, up one place from 2015. This is mainly due to the strength of the Japanese Yen, which has held steady against the USD, while most other currencies have weakend. In addition factors such as consumption tax increases has resulted in US Dollar prices increasing in global terms.

Shanghai is the fourth most expensive place in the Asia-Pacific region, and 20th globally. Of interest this quarter is that for the first time, China has 4 cities in the Asia-Pacific top 10, with Macao 8th, Beijing 9th and Hong Kong in the top spot. While the cost of living for local people in China is generally cheaper, as it is possible to buy many items cheaply, Xpatulator.com compares the cost of living for expatriates by pricing internationally recognised quality brands, based on international spending patterns for comparison purposes, within expatriate residential areas, in order to make consistent global comparisons. In the past few years international brands and services applicable to expatriates have become more expensive, pushing up the overall cost of living.

Australia now has only one city in the top ten, compared to four in 2014, with Sydney maintaining 5th in Asia-Pacific, dropping to 28th globally, largely as a result of the weaker AUD compared to USD. The Australian Dollar weakend approximately 12% against the US Dollar during 2015. Canberra has dropped to 65th, down 28 places, Melbourne 74th, down 24 places, and Perth 80th, down 22 places.

Europe

Zurich and Geneva are ranked as the first and second most expensive expat cities in Europe and the 7th and 9th most expensive global locations for expatriates. This is due primarily to the robust Swiss Franc which has maintained it's position against the US Dollar despite the dollar's strong showing in 2015, as well as due to high rentals and institutionalsed high wages.

Oslo is the world's 13th and Europe's third most expensive city as at January 2016. Oslo was the most expensive location in Europe in 2014, however the weaker Norwegian Krone (more than 18% weaker against the USD by the end of 2015) resulting primarily from the lower global oil price and subsequent weaker oil sector, contributed to Oslo becoming relatively cheaper in global terms during 2015. Non-Euro countries continue to be the most expensive expatriate locations in Europe.

Oslo has maintained it's status as the third most expensive city in Europe although it has fallen 4 places globally to be ranked 13th, falling out of the top 10 most expensive cities in the world. The Norwegian Kroner (NOK) has weakenend by over 18% against the US Dollar in 2015. Oslo was the most expensive location in Europe in 2014, however the weaker Norwegian Krone resulting primarily from the lower global oil price and subsequent weaker oil sector, has contributed to Oslo becoming relatively cheaper in global terms in 2016.

Moscow has fallen out of the top 10 most expensive places in Europe. Local prices in Russia have increased significantly as a result of international sanctions. The Russian Rouble has weakned by nearly 30% over the past 12 months. Moscow is currently ranked 83rd most expensive place for expatriates in the world.

Middle East

Abu-Dhabi in the UAE is the most expensive city for expats in the Middle East, followed by Dubai, and Beirut, with Doha in third, and fourth respectively, while Damascus is the cheapest city to live in.

Locations in the Middle East with a fixed exchange rate to the US Dollar, have become relatively more expensive in global terms, in the past year. For example Abu-Dhabi, with a fixed rate, has risen from 133rd most expensive in the world in Q2 of 2015 to 81st this quarter (out of 780 global locations), mainly as a result of the strong US Dollar. In Abu-Dhabi rent, schooling, medical, food and household costs are very high. Similarly Dubai has risen from 115 most expensive in the world in Q3 of 2015 to 89th this quarter

Beirut is third most expensive in the region (102nd globally) mainly due to the cost of housing for expats, there is limited stock and most apartments are large and expensive, targeting the wealthier expatriate. Another influence is that of groceries which are very expensive in Beirut itself compared to the rest of the country. Also electricity is very expensive and with energy rationing many home and business owners hire private generators to compensate, paying more for this commodity than one normally would. Transportation is also on average expensive due to the high cost of gasoline, and with the need for private transportation due to the lack of public service availability, this adds to the overall expat and local cost of living.

The top 10 most expensive cities in the world from 2010 to 2016 are as follows:

Top 400 City Rankings as at 1 January 2016 - Overall cost of living Index - All 13 Baskets:

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