CARACAS, VENEZUELA MOST EXPENSIVE CITY IN THE AMERICAS
Rampant inflation, shortages and tight government controls on foreign exchange have pushed Caracas, Venezuela to the top of the list of the most expensive cities in the Americas for foreign workers according to the most recent cost of living data collected by Xpatulator.com.
As the World’s fifth largest exporter of oil, Venezuela was once a top destination for skilled foreign oil and gas workers. It’s attractiveness for expats has been steadily eroded by strict government regulations that limit hiring and compensation for foreign workers and by the soaring cost of living.
New cost of living data published by Xpatulator.com ranks Caracas ahead of Manhattan as the most expensive city in the Americas. In contrast to Manhattan’s abundantly stocked boutiques, shops in Caracas are suffering from long lines and bare shelves. Long standing government price controls and an official government exchange rate of 6.3 bolivars per US dollar have created a parallel black market.
Everything from cooking oil to rice and flour is being diverted to the Colombian border, where prices are 10-12X times higher and black market US dollars trade for 60-90 Venezuelan bolivars. Shortages in the stores have recently spilled into the streets in the form of violent protests.
The Canadian Globe and Mail news service reports that many engineers and other skilled foreign workers have fled Venezuela for Calgary, Canada’s booming oil and gas industry hub. Thanks to recent drops in the Canadian dollar, Calgary slipped from 101st to 118th place in the Xpatulator.com cost of living global rankings.
Xpatulator.com provides up-to-date cost of living data for over 700 locations worldwide.
Top Ten City Rankings for The Americas
While on international assignments ensure that you or your employee's spending power is not compromised by changes in inflation, the availability of goods as well as exchange rates. Multinational companies will often include a cost of living allowance in their pay packages to ensure that employee's remuneration packages are not compromised by changes in the relative cost of living.
Reference: The cost of living ranking information contained in this article is updated quarterly using data collected by Xpatulator.com over the past 12 months. The international cost of living indexes, on which the rankings are based, is only available using Xpatulator.com's online expatriate calculators that enable users to create personalized cost of living comparison reports which include:
- Salary Purchasing Power Parity Calculator
- Cost of Living Allowance Calculator
- Cost of Living Index Calculator
- International Assignment Management Calculator
Published by Xpatulator.com on 1 April 2014
This article may be freely copied as long as reference is made to http://www.xpatulator.com/