Small Businesses

Worldwide Cost of Living survey ranks the globe’s 10 most-expensive cities

  • 3 min Read
  • January 11, 2022

Author

Escalon

Table of Contents

Remote work may be here to stay, but most businesses still require a location that is conducive to growth and expansion. Ideally, the location offers ready access to a market, a talented pool of employees and policies that are favorable to business growth.


The Economist Intelligence Unit recently published a “Worldwide Cost of Living 2021” report that assessed data, including key factors that influence businesses on where to locate, from 173 countries worldwide. Not surprisingly, the list contains some cities long regarded as among the world’s most expensive. But likely owing to disruption of the pandemic, a few surprising cities emerged on the list as well. By proxy, these cities are not only among the most expensive to live, but also to run a business.


The EIU’s 2021 survey found the 10 costliest cities to be:



1. Tel Aviv, Israel


2. Paris (tied with Singapore for second place)


3. Singapore (tied with Paris for second place)


4. Zurich


5. Hong Kong


6. New York City


7. Geneva


8. Copenhagen, Denmark


9. Los Angeles


10. Osaka, Japan


Behind the rankings



Tel Aviv moved up four places to the position of the world’s No. 1 most-expensive city, largely due to the rising value of the shekel, accompanied by significant price hikes for about 10% of goods in the city due to the pandemic, the report’s authors write.


In calculating the Worldwide Cost of Living index, which is benchmarked against New York City, the report weighs prices for 10 categories of consumer goods and services used by global businesspeople. Across the board, transportation bottlenecks and supply chain issues were a primary source of rising costs in 2021, coupled with steeper prices for commodities and shifting consumer preferences. 


Among the 10 categories of products and services used to derive the WCOL rankings, transportation saw the sharpest jumps, with index scores up 3.8 points on average, while the average per-liter price for petrol increased 21%. The inflation rate for prices tracked in the WCOL index across cities showed the fastest clip in five years, climbing by 3.5% year-over-year in local currencies, the report states.


Other findings



Tripoli, Libya, and Damascus, Syria were found to be the least-expensive cities in the world, owing to continuing political upheaval and economic challenges. Tehran, Iran, catapulted to position 29 in the ranking from 79 in 2020, precipitated by the climbing price of imports and continued goods shortages amid reimposed U.S. sanctions. 


In the U.S., most cities either stayed put or fell in the rankings as the federal government stepped in with COVID-19 relief. This helped ensure the dollar remained stable and wasn’t subjected to currency volatility. However, New York City turned out to be the sixth most-costly city in the world and the U.S.’ frontrunner in terms of its cost of living.


What’s ahead



According to the report, if supply chain bottlenecks and lockdowns ease as anticipated, living costs in most major cities will stabilize near 2022’s end. Nevertheless, many businesses will continue to be ensnared by the need to be located in the presumably costly cities where all the action is. This may further the trend of companies that choose to base their headquarters in their native country and outsource operations. To reap the benefits of an outsourced economy, a business needs to research only which firms suit their requirements; the rest is taken care of by the outsourced firm.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

Q2 Business Planning: Adjusting Your Financial Strategy for the Rest of the Year

By the time Q2 rolls around, many startups have a clearer picture of their performance and market positioning compared to...

Read More
People Management & HR

5 Key HR Challenges to Address Before Summer to Keep Your Team Engaged

For many startups, the summer months can be a dual-edged sword. On one hand, warmer weather and looming vacations can...

Read More
Taxes

How to Maximize Your Tax Deductions: Essential Tips for Startups in Q2

Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...

Read More
Startups

Mid-Year Financial Checkup: How to Assess and Adjust Your Startup’s Budget 

The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...

Read More
Consumer Goods

Inventory Accounting 101: Navigating Costing Methods and Their Impact on Financial Health 

For consumer goods companies, managing inventory efficiently is critical—not just for operations but also for financial health and risk management....

Read More
Technology & Security

Compliance Considerations for SaaS: Protecting Data and Staying Secure

As more businesses transition to Software-as-a-Service (SaaS) solutions, data security and regulatory compliance have become top priorities. From handling sensitive...

Read More
Accounting & Finance

How Outsourced Accounting Supports Scalability in Portfolio Companies 

For portfolio companies, whether backed by private equity, venture capital, or family offices, scalability is essential for maximizing value and...

Read More
Consumer Goods

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing  In a recent conversation with...

Read More
Private Equity

The Key to Private Equity Success: Strong Financial Oversight and Compliance

Private equity deals are becoming larger and more complex, making financial preparation a critical part of the process. Take Novartis’s...

Read More