Annual Indices for Average Residents and Expatriates on Cost of Living, Wages and Purchasing Power for World s Major Cities:

Transcription

1 Plenary Session 6: Indices on Cost of Living, Wages and Purchasing Power for Average Residents and Expatriates for 109 Cities 26 November Annual Asia Competitiveness Institute Conference 1 Annual Indices for Average Residents and Expatriates on Cost of Living, Wages and Purchasing Power for World s Major Cities: Associate Professor Tan Khee Giap Dr Vu Minh Khuong Dr Grace Aw Ee Ling Ms Joan Michele Ryan Co Director Assistant Professor Adjunct Research Fellow Research Assistant Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore 2

2 Presentation Outline 1. Motivation for ACI Indices for Average Residents and Expatriates 2. Similar Studies Done by other International Institutions 3. Three Improved Features in the ACI Indices 4. Data Sources and Assumptions Made 5. ACI Methodological Framework: On Cost of Living (including weights), Wages and Purchasing Power 6. Results: Top 30 Cities on Cost of Living for Average Residents and Expatriates 7. Results: Case Studies on Singapore 8. Comparisons of Cost of Living in Selected Asian Cities 9. Expected Contributions and Implications of ACI Indices 3 The ACI Indices For Average Residents and Expatriates ACI aims to provide for ordinary citizens, multinational executives, potential investors, policy makers and government officials reliable estimates on cost of living, wages and purchasing power for the world s major cities across the globe in a professional manner as follows: Our book provides annual indices for cost of living, wages and purchasing power since 2005 for average residents (the first ever comprehensive study of this kind available today) and expatriates (which are widely available but done less rigorously compared to the ACI study); Data used and their sources are explicitly disclosed; Our rigorous methodology is explained openly; Weights employed for consumption baskets are justified and stated clearly; All assumptions made are also laid down in a transparent approach. 4

3 ACI Indices on cost of living, wages and purchasing power covered 109 cities, including the 72 cities covered by UBS 5 Other Similar Studies UBS: Prices and Earnings Report Updated every three years Offers indices on price levels, wages, and purchasing power for expatriates Basket of goods and services used to calculate indices was based on European family of three The same basket assumed common consumer preferences across all cities regardless of geography, lifestyle, culture etc. Wages data collected was limited to few companies for each profession and city 6

4 Other Similar Studies Economist Intelligence Unit (EIU): Worldwide Cost of Living Index Updated annually Includes only cost of living index for expatriates Also based on a single set of weights for the basket of goods and services; geared towards Western consumption Requires a paid subscription 7 Other Similar Studies Mercer: Cost of Living City Rankings Updated annually Includes only the ranking of cities according to cost of living for expatriates; no index value 8

5 The ACI Indices on Expatriates Indices Ranking Series EPIC: Cost of living for expatriates EPIW: Wage index for expatriates EPIP: Purchasing power index for expatriates EP$W: Gross hourly wages in USD for expatriates EPRC: Ranking of cost of living for expatriates EPRW: Ranking for wages of expatriates EPRP: Ranking for purchasing power of expatriates The ACI Indices on Average Residents Indices Ranking Series ARIC: Cost of living for average residents ARIW: Wage index for average residents ARIP: Purchasing power index for average residents AR$W: Gross hourly wages in USD for average residents ARRC: Ranking of cost of living for average residents ARRW: Ranking for wages of average residents ARRP: Ranking for purchasing power of average residents

6 The ACI Indices: Three Improved Features 1. More comprehensive coverage The cost of living, purchasing power, and wages indices for average residents are all reported. These cannot be found elsewhere. The same three indices are also all reported for the expatriates. 2. More rigorous methodology The ACI report distinguishes between the average residents and the expatriates in terms of cost of living. Expatriates tend to purchase high-end products and have western consumption preferences. Average residents purchase typical products and have a local pattern of consumption. 3. More reliable data The data on item prices was drawn from EIU, which is considered the most reliable private source of data by most researchers. Consumer preference profiles (category weights) were taken from the International Comparison Program (ICP). Wage data was drawn from the International Labor Organization (ILO), which is considered the most reliable source of data on labor and wage. 11 EIU versus World Bank (WB) ICP Data Both sources provide a compendium of item price data. However, key differences required selective use of both: EIU provided data at a city-level, but reported expatriatesoriented prices. ICP provided data only on a national level, but reported price indices more reflective of the local consumption preferences. 12

7 ACI Methodological Framework: Assumptions Made In developing the indices, these are the assumptions we have made: 1. The consumption pattern of average residents follows the consumption baskets of International Comparison Program survey. 2. The consumption basket for expatriates is the average of the consumptions baskets of industrialized countries. 3. The relative price of two cities in the same country for average residents is similar to the relative price between the two cities for expatriates. 4. The relative price between two cities in different countries corresponds to the difference in Purchasing Power Parity between the two countries. 13 ACI Methodological Framework: On Cost of Living Price data from the EIU City Database was used to calculate arithmetic mean of item prices across cities. 284 data items 165 products and services (i = 1,, 165) 10 categories of products and services An index of prices was created, with New York City as the base. Similar to EIU Index calculation, the index values are calculated based on the arithmetic mean of price levels in the two selected cities; this ensures that the paradoxical situation of any two selected cities being more expensive than the other cannot 14 arise.

8 ACI Methodological Framework: Consumption Basket Categories WB ICP Categories Food & nonalcoholic beverages Alcoholic beverages, tobacco & narcotics Clothing & footwear Housing, water, electricity, gas & other fuels Furnishings, household equipment and maintenance Health Transport Recreation Education EIU City Database: 10 Categories Food & Nonalcoholic Drinks Alcohol & Tobacco Clothing Housing Rents & Utilities Household supplies & Domestic help Doctors Fees & Personal care Transport Recreation & Sports Education Miscellaneous - 15 ACI Methodological Framework: On Cost of Living Construction framework of index Compute average price of each product/service i of city j, AV ij Compute average price of each product/service i between New York and city j, AV ij _ NY Calculate the index of prices for each city j (including New York), AV AV / AV ij, NY ij ij _ NY Compute the index of each city j relative to New York (base), CP 100 AV / AV EIU ij ij, NY NYj, NY 16

9 ACI Methodological Framework: On Cost of Living For each category, index values for each data item were multiplied by the weights attached to each data item in the category. The sum of the weighted index (of data items) of each category gave the index value for the particular category. Identical weights were then universally applied to each category s index and added together to obtain each city s cost of living index for expatriates. 17 ACI Methodological Framework: Weights Assigned to 10 Categories of the Consumption Basket For Expatriates Category Weights Category Weights Food & Nonalcoholic Drinks 9.6% Personal Care & Doctor s Fees 11.6% Alcohol & Tobacco 3.1% Transport 10.5% Clothing 4.3% Recreation & Sports 8.8% Housing Rents & Utilities Household Supplies & Domestic Help 17.3% Education 8.1% 5.0% Miscellaneous 21.7% Weights are an average of the profiles of industrialized countries, taken from ICP data. 18

10 ACI Methodological Framework: On Cost of Living Calculating the cost of living for average residents required two modifications. 1.Country-specific, unique weights (from ICP data) were applied to each category s index and added together to obtain each city s overall cost of living index. 19 ACI Methodological Framework: Weights Assigned to 10 Categories of the Consumption Basket For Average Residents Category Weights Category Weights Food & Nonalcoholic Drinks r 1 Personal Care & Doctor s Fees r 6 Alcohol & Tobacco r 2 Transport r 7 Clothing r 3 Recreation & Sports r 8 Housing Rents & Utilities r 4 Education r 9 Household Supplies & Domestic Help r 5 Miscellaneous r 10 20

11 ACI Methodological Framework: On Cost of Living 2. This index was multiplied by an adjustment factor to obtain the city s cost of living index for average residents. The adjustment factor is the ratio of ICP s price index to EIU s price index. This captures the proportionate price difference between ICP and EIU. NP NP ICP k US EIU k US 21 ACI Methodological Framework: On Cost of Living Construction framework follows 3 steps: Construct the overall price index at the national level, using data from ICP: NP ICP k _ US ( NP ICP k / NP ICP US ) *100 This shows how expensive the cost of living in country k is, compared to the US level (US=100). 22

12 ACI Methodological Framework: On Cost of Living Construct the national and city level price index relative to the US and New York, respectively. In this step, assume that the national price level for country k, EIU NP k is simply the average of the price levels observed for its cities EIU CP kj i.e.: NP EIU k Average j ( CP EIU kj ) 23 ACI Methodological Framework: On Cost of Living Constructing the city level price index relative to New York (New York=100): CLI kj CP CP EIU kj EIU NY ICP NP k ICP EIU ICP NP kj k US * US CP NP *100 * EIU EIU EIU NP CP k NY NPk US EIU NP US *100 24

13 ACI Methodological Framework: On Cost of Living Note: CP CP EIU kj EIU NY is the cost of living index based on EIU data NP NP ICP k US EIU k US is the adjustment factor that takes into account the difference in data between the ICP survey (focusing on average residents consumption) and the EIU survey (aimed at the average expatriates consumption) 25 ACI Methodological Framework: On Wages Expatriates incomes averages USD100,000 per annum. 70% of this is typically used for consumption and represents the typical consumption-to-spendable income ratio for the average Westerner. This amount is affected by the specific city s cost of living. The overall expatriates compensation was thus calculated as the 70% adjusted for each city s cost of living index, added to the remaining USD30,000. This was then converted to hourly wages, and then an index value. $30, [EPIC/100 x $70, 000] For the average residents, gross hourly wages were obtained from ILO s estimates Where ILO data was not available, government websites were referred to. The index was similarly calculated by using New York City as the base. 26

14 ACI Methodological Framework: On Purchasing Power Each city's gross per hourly wages was divided by the cost of living index The resulting value was then converted into an index with New York City as the base Results: Top 30 positions on Cost of Living Ranking for Average Residents Amongst 109 Cities Rank Country City ARIC 1 (31) REYKJAVIK Iceland (5) ZURICH Switzerland (4) OSLO Norway (12) COPENHAGEN Denmark (7) GENEVA Switzerland (11) PARIS France (9) FRANKFURT Germany (56) DUBLIN Ireland (17) HELSINKI Finland (3) TOKYO Japan (14) STOCKHOLM Sweden (15) NEW YORK United States (66) LUXEMBOURG Luxembourg (13) LONDON Great Britain (8) SYDNEY Australia (38) MILAN Italy (6) OSAKA / KOBE Japan (19) WASHINGTON DC United States (10) MELBOURNE Australia (50) BRUSSELS Belgium (21) CHICAGO United States (40) LOS ANGELES United States (34) AUCKLAND New Zealand (67) AMSTERDAM Netherlands (45) ROME Italy (63) VIENNA Austria (44) TORONTO Canada (16) PERTH Australia (22) HONOLULU United States (18) BRISBANE Australia Note: Value in parentheses denotes cost of living ranking on expatriates ARIC = Cost of living index for average residents 28

15 2012 Results: Top 30 positions on Cost of Living Ranking for Expatriates Amongst 109 Cities Rank Country City EPIC 1 (60) SINGAPORE Singapore (81) CARACAS Venezuela (11) TOKYO Japan (3) OSLO Norway (2) ZURICH Switzerland (16) OSAKA / KOBE Japan (5) GENEVA Switzerland (15) SYDNEY Australia (7) FRANKFURT Germany (20) MELBOURNE Australia (6) PARIS France (4) COPENHAGEN Denmark (14) LONDON Great Britain (10) STOCKHOLM Sweden (12) NEW YORK United States (28) PERTH Australia (9) HELSINKI Finland (34) BRISBANE Australia (18) WASHINGTON DC United States (58) HONG KONG Hong Kong, China (21) CHICAGO United States (24) HONOLULU United States (90) MOSCOW Russia (67) ISTANBUL Turkey (46) ADELAIDE Australia (29) MINNEAPOLIS United States (75) SAO PAULO Brazil (79) BEIJING China (27) VANCOUVER Canada (43) BARCELONA Spain Note: Value in parentheses denotes cost of living ranking on average residents EPIC = Cost of living index for expatriates 29 Results: The Singapore Ranking for the Average Residents Amongst 109 cities, Singapore s cost of living ranking by category. ARRC = Ranking for cost of living for average residents 30

16 Results: The Singapore Ranking for the Expatriates Amongst 109 cities, Singapore s cost of living ranking by category. EPRC = Ranking for cost of living for expatriates 31 Results: The Singapore Ranking for the Average Residents Amongst 109 cities, Singapore s gross hourly wages and wages ranking. ARRW = Ranking for wage for average residents; AR$W = Gross hourly wage in USD for average residents 32

17 Results: The Singapore Ranking for the Expatriates Amongst 109 cities, Singapore s gross hourly wages and wages ranking. EPRW = Ranking for wage for expatriates; EP$W = Gross hourly wage in USD for expatriates 33 Results: The Singapore Indices for Average Residents Amongst 109 Cities, Singapore s wages and purchasing power indices. ARIW = Wage index for average residents; ARIP = Purchasing power index for average residents 34

18 Results: The Singapore Indexes for Expatriates Amongst 109 Cities, Singapore s wages and purchasing power indices. EPIW = Wage index for expatriates; EPIP = Purchasing power index for expatriates 35 Comparison: Singapore Versus Hong Kong Amongst 109 Cities, Cost of living for both expatriates and average residents. EPIC = Cost of living index for expatriates ARIC = Cost of living index for average residents 36

19 Comparison: Beijing Versus New Delhi Amongst 109 Cities, Cost of living for both expatriates and average residents. EPIC = Cost of living index for expatriates ARIC = Cost of living index for average residents 37 Comparison: 4 Asian Cities Amongst 109 Cities, Cost of living for expatriates in Beijing, Shanghai, Mumbai, New Delhi. EPIC = Cost of living index for expatriates 38

20 Comparison: 4 Asian Cities Amongst 109 Cities, Cost of living for average residents in Beijing, Shanghai, Mumbai, New Delhi. ARIC = Cost of living index for average residents 39 Comparison: 4 ASEAN Cities Amongst 109 Cities, Cost of living for expatriates in Bangkok, Jakarta, Kuala Lumpur, Manila. EPIC = Cost of living index for expatriates 40

21 Comparison: 4 ASEAN Cities Amongst 109 Cities, Cost of living for average residents in Bangkok, Jakarta, Kuala Lumpur, Manila. ARIC = Cost of living index for average residents 41 Expected Contributions and Implications of ACI Indices For transparency and consistency -- Unless assumptions, methodology and data sources are disclosed publicly, it can lead to spurious or misleading results for cities For policy makers: Poverty statistics can be measured differently by cost of living and purchasing power of average residents. Differences between average residents and expatriates, which were previously hidden by a national index, are now made salient. For academics: More accurate report of price levels within a given city. Distinction between average residents and expatriates opens up more tools for social research. For multinational corporations: Employers can review and adjust compensation packages according to cities for expatriates. Allowing employers to adopt more competitive compensation packages for workers working abroad given the differences on cost of living between expatriates and average residents in a given city. 42

22 Thank You For Your Attention! 43 UBS Expatriate Ranking of Cost of Living Indices 2012, N=72 Rank Index Rank Index Rank Index Rank Index The data are available every three years 44

23 EIU Cost of Living Ranking 2013, N=131 Only top 10 and last 10 available Rank Rank The top 10 and bottom 10 available free, annual data 45 Mercer Cost of Living Ranking 2012, N=214 Only ranking available, full set and annual 46

24 Mercer Cost of Living Ranking 2012, N=214 Only ranking available 47 UBS Expatriates Ranking of Cost of Living 2012, N=72 The data are available every three years 48

25 EIU Cost of Living Ranking 2013, N=131 Only top 10 and last 10 available The top 10 and bottom 10 available free, annual data 49 Mercer Cost of Living Ranking 2012, N=214 Only ranking available, full set and annual 50

26 Mercer Cost of Living Ranking 2012, N=214 Only ranking available Results: Average Residents Cost of Living, ARIC Rank City Country ARIC 1 REYKJAVIK Iceland ZURICH Switzerland OSLO Norway COPENHAGEN Denmark GENEVA Switzerland PARIS France FRANKFURT Germany DUBLIN Ireland HELSINKI Finland STOCKHOLM Sweden TOKYO Japan NEW YORK United States LUXEMBOURG Luxembourg LONDON Great Britain SYDNEY Australia OSAKA / KOBE Japan MILAN Italy WASHINGTON DC United States BRUSSELS Belgium MELBOURNE Australia ARIC = Cost of living for average residents 52

27 2012 Results: Average Residents Cost of Living, ARIC Rank City Country ARIC 21 CHICAGO United States AUCKLAND New Zealand AMSTERDAM Netherlands HONOLULU United States VIENNA Austria ROME Italy VANCOUVER Canada PERTH Australia MINNEAPOLIS United States MUNICH Germany ATLANTA United States WELLINGTON New Zealand TORONTO Canada BRISBANE Australia BOSTON United States LOS ANGELES United States HOUSTON United States MONTREAL Canada MIAMI United States SEATTLE United States ARIC = Cost of living for average residents Results: Average Residents Cost of Living, ARIC Rank City Country ARIC 41 CALGARY Canada BERLIN Germany BARCELONA Spain CLEVELAND United States DUBAI United Arab Emirates ADELAIDE Australia PITTSBURGH United States LEXINGTON United States SAN FRANCISCO United States MADRID Spain DOHA Qatar LISBON Portugal KUWAIT Kuwait ATHENS Greece LYON France TEL AVIV Israel DETROIT United States HONG KONG Hong Kong, China SEOUL South Korea SINGAPORE Singapore ARIC = Cost of living for average residents 54

28 2012 Results: Average Residents Cost of Living, ARIC Rank City Country ARIC 61 NICOSIA Cyprus LJUBLJANA Slovenia TALLINN Estonia RIGA Latvia JOHANNESBURG South Africa MANAMA Bahrain ISTANBUL Turkey MEXICO CITY Mexico SANTIAGO Chile TAIPEI Taiwan, China VILNIUS Lithuania PRETORIA South Africa BUDAPEST Hungary AMMAN Jordan SAO PAULO Brazil WARSAW Poland PRAGUE Czech Republic RIO DE JANEIRO Brazil BEIJING China MONTEVIDEO Uruguay ARIC = Cost of living for average residents Results: Average Residents Cost of Living, ARIC Rank City Country ARIC 81 CARACAS Venezuela SHANGHAI China BRATISLAVA Slovakia BUCHAREST Romania KUALA LUMPUR Malaysia BOGOTA Colombia SHENZHEN China LIMA Peru QUITO Ecuador MOSCOW Russia BUENOS AIRES Argentina DALIAN China MANILA Philippines BANGKOK Thailand QINGDAO China SOFIA Bulgaria JAKARTA Indonesia NAIROBI Kenya TIANJIN China GUANGZHOU China ARIC = Cost of living for average residents 56

29 2012 Results: Average Residents Cost of Living, ARIC Rank City Country ARIC 101 ST PETERSBURG Russia COLOMBO Sri Lanka MUMBAI India SUZHOU China ASUNCION Paraguay NEW DELHI India CAIRO Egypt BAKU Azerbaijan KIEV Ukraine ARIC = Cost of living for average residents Results: Expatriates Cost of Living, EPIC Rank City Country EPIC 1 SINGAPORE Singapore CARACAS Venezuela TOKYO Japan OSLO Norway ZURICH Switzerland OSAKA / KOBE Japan GENEVA Switzerland SYDNEY Australia FRANKFURT Germany MELBOURNE Australia PARIS France COPENHAGEN Denmark LONDON Great Britain STOCKHOLM Sweden NEW YORK United States PERTH Australia HELSINKI Finland BRISBANE Australia WASHINGTON DC United States HONG KONG Hong Kong, China EPIC = Cost of living for expatriates 58

30 2012 Results: Expatriates Cost of Living, EPIC Rank City Country EPIC 21 CHICAGO United States HONOLULU United States MOSCOW Russia ISTANBUL Turkey ADELAIDE Australia MINNEAPOLIS United States SAO PAULO Brazil BEIJING China VANCOUVER Canada BARCELONA Spain REYKJAVIK Iceland ATLANTA United States BOSTON United States AUCKLAND New Zealand BOGOTA Colombia RIO DE JANEIRO Brazil SEOUL South Korea MILAN Italy MUNICH Germany LOS ANGELES United States EPIC = Cost of living for expatriates Results: Expatriates Cost of Living, EPIC Rank City Country EPIC 41 LIMA Peru MADRID Spain HOUSTON United States TORONTO Canada ROME Italy SEATTLE United States MIAMI United States CLEVELAND United States LEXINGTON United States BRUSSELS Belgium MONTREAL Canada SAN FRANCISCO United States PITTSBURGH United States BANGKOK Thailand WELLINGTON New Zealand DUBLIN Ireland JAKARTA Indonesia CALGARY Canada SHANGHAI China SANTIAGO Chile EPIC = Cost of living for expatriates 60

31 2012 Results: Expatriates Cost of Living, EPIC Rank City Country EPIC 61 MEXICO CITY Mexico LISBON Portugal VIENNA Austria BERLIN Germany TEL AVIV Israel LUXEMBOURG Luxembourg AMSTERDAM Netherlands ATHENS Greece DETROIT United States NAIROBI Kenya ST PETERSBURG Russia PRAGUE Czech Republic MANILA Philippines DUBAI United Arab Emirates AMMAN Jordan MONTEVIDEO Uruguay LYON France JOHANNESBURG South Africa NICOSIA Cyprus SHENZHEN China EPIC = Cost of living for expatriates Results: Expatriates Cost of Living, EPIC Rank City Country EPIC 81 TAIPEI Taiwan, China LJUBLJANA Slovenia CAIRO Egypt DALIAN China DOHA Qatar BUENOS AIRES Argentina KUALA LUMPUR Malaysia BRATISLAVA Slovakia BUDAPEST Hungary TALLINN Estonia QINGDAO China PRETORIA South Africa TIANJIN China GUANGZHOU China WARSAW Poland KIEV Ukraine RIGA Latvia MANAMA Bahrain SUZHOU China BAKU Azerbaijan EPIC = Cost of living for expatriates 62

32 2012 Results: Expatriates Cost of Living, EPIC Rank City Country EPIC 101 VILNIUS Lithuania SOFIA Bulgaria KUWAIT Kuwait QUITO Ecuador MUMBAI India COLOMBO Sri Lanka BUCHAREST Romania ASUNCION Paraguay NEW DELHI India EPIC = Cost of living for expatriates Results: Average Residents Wages, ARIW Rank City Country ARIW 1 ZURICH Switzerland GENEVA Switzerland OSLO Norway COPENHAGEN Denmark LUXEMBOURG Luxembourg SYDNEY Australia MELBOURNE Australia PERTH Australia BRISBANE Australia ADELAIDE Australia NICOSIA Cyprus STOCKHOLM Sweden BRUSSELS Belgium VANCOUVER Canada TORONTO Canada MONTREAL Canada CALGARY Canada DUBLIN Ireland VIENNA Austria LONDON Great Britain ARIW = Wages for average residents 64

33 2012 Results: Average Residents Wage, ARIW Rank City Country ARIW 21 HELSINKI Finland AMSTERDAM Netherlands PARIS France LYON France TOKYO Japan OSAKA / KOBE Japan FRANKFURT Germany MUNICH Germany BERLIN Germany AUCKLAND New Zealand WELLINGTON New Zealand NEW YORK United States WASHINGTON DC United States CHICAGO United States HONOLULU United States MINNEAPOLIS United States ATLANTA United States BOSTON United States LOS ANGELES United States HOUSTON United States ARIW = Wages for average residents Results: Average Residents Wages, ARIW Rank City Country ARIW 41 MIAMI United States SEATTLE United States CLEVELAND United States PITTSBURGH United States LEXINGTON United States SAN FRANCISCO United States DETROIT United States REYKJAVIK Iceland SINGAPORE Singapore MILAN Italy ROME Italy BARCELONA Spain MADRID Spain ATHENS Greece LJUBLJANA Slovenia TEL AVIV Israel SEOUL South Korea QUITO Ecuador KUWAIT Kuwait DOHA Qatar ARIW = Wages for average residents 66

34 2012 Results: Average Residents Wages, ARIW Rank City Country ARIW 61 LISBON Portugal JOHANNESBURG South Africa PRETORIA South Africa PRAGUE Czech Republic TAIPEI Taiwan, China HONG KONG Hong Kong, China DUBAI United Arab Emirates TALLINN Estonia WARSAW Poland BRATISLAVA Slovakia BUDAPEST Hungary ISTANBUL Turkey MOSCOW Russia ST PETERSBURG Russia BUCHAREST Romania RIGA Latvia SANTIAGO Chile VILNIUS Lithuania MONTEVIDEO Uruguay SAO PAULO Brazil ARIW = Wages for average residents Results: Average Residents Wages, ARIW Rank City Country ARIW 81 RIO DE JANEIRO Brazil BUENOS AIRES Argentina KUALA LUMPUR Malaysia BAKU Azerbaijan SOFIA Bulgaria NAIROBI Kenya BOGOTA Colombia LIMA Peru CARACAS Venezuela MANAMA Bahrain MEXICO CITY Mexico AMMAN Jordan KIEV Ukraine BEIJING China SHANGHAI China SHENZHEN China DALIAN China QINGDAO China TIANJIN China GUANGZHOU China ARIW = Wages for average residents 68

35 2012 Results: Average Residents Wages, ARIW Rank City Country ARIW 101 SUZHOU China ASUNCION Paraguay CAIRO Egypt BANGKOK Thailand MANILA Philippines JAKARTA Indonesia MUMBAI India NEW DELHI India COLOMBO Sri Lanka 2.92 ARIW = Wages for average residents Results: Expatriates Wages, EPIW Rank City Country EPIW 1 OSLO Norway FRANKFURT Germany LONDON Great Britain SYDNEY Australia ZURICH Switzerland MELBOURNE Australia GENEVA Switzerland COPENHAGEN Denmark TOKYO Japan PERTH Australia CARACAS Venezuela BRISBANE Australia STOCKHOLM Sweden PARIS France VANCOUVER Canada OSAKA / KOBE Japan MUNICH Germany ADELAIDE Australia TORONTO Canada HELSINKI Finland EPIW = Wages for expatriates 70

36 2012 Results: Expatriates Wages, EPIW Rank City Country EPIW 21 AUCKLAND New Zealand NEW YORK United States BARCELONA Spain AMSTERDAM Netherlands MONTREAL Canada BRUSSELS Belgium NAIROBI Kenya CALGARY Canada SINGAPORE Singapore MADRID Spain BERLIN Germany VIENNA Austria WELLINGTON New Zealand WASHINGTON DC United States CHICAGO United States MOSCOW Russia HONOLULU United States DUBLIN Ireland MILAN Italy MINNEAPOLIS United States EPIW = Wages for expatriates Results: Expatriates Wages, EPIW Rank City Country EPIW 41 LISBON Portugal ROME Italy ATLANTA United States BOSTON United States LOS ANGELES United States HOUSTON United States SEATTLE United States REYKJAVIK Iceland MIAMI United States CLEVELAND United States LEXINGTON United States SAN FRANCISCO United States PITTSBURGH United States SAO PAULO Brazil LJUBLJANA Slovenia RIO DE JANEIRO Brazil LUXEMBOURG Luxembourg JAKARTA Indonesia TEL AVIV Israel SANTIAGO Chile EPIW = Wages for expatriates 72

37 2012 Results: Expatriates Wages, EPIW Rank City Country EPIW 61 DETROIT United States PRAGUE Czech Republic ST PETERSBURG Russia HONG KONG Hong Kong, China LYON France ATHENS Greece SEOUL South Korea MEXICO CITY Mexico BAKU Azerbaijan ISTANBUL Turkey NICOSIA Cyprus BOGOTA Colombia SOFIA Bulgaria BEIJING China JOHANNESBURG South Africa BUDAPEST Hungary TALLINN Estonia MONTEVIDEO Uruguay KIEV Ukraine BRATISLAVA Slovakia EPIW = Wages for expatriates Results: Expatriates Wages, EPIW Rank City Country EPIW 81 MANILA Philippines BUENOS AIRES Argentina TAIPEI Taiwan, China SHANGHAI China WARSAW Poland PRETORIA South Africa RIGA Latvia BANGKOK Thailand VILNIUS Lithuania LIMA Peru CAIRO Egypt SHENZHEN China BUCHAREST Romania DALIAN China KUALA LUMPUR Malaysia COLOMBO Sri Lanka QINGDAO China TIANJIN China GUANGZHOU China QUITO Ecuador EPIW = Wages for expatriates 74

38 2012 Results: Expatriates Wages, EPIW Rank City Country EPIW 101 DOHA Qatar DUBAI United Arab Emirates SUZHOU China MANAMA Bahrain MUMBAI India KUWAIT Kuwait AMMAN Jordan ASUNCION Paraguay NEW DELHI India EPIW = Wages for expatriates Results: Average Residents Purchasing Power, ARIP Rank City Country ARIP 1 NICOSIA Cyprus ADELAIDE Australia GENEVA Switzerland BRISBANE Australia ZURICH Switzerland OSLO Norway PERTH Australia COPENHAGEN Denmark MELBOURNE Australia LUXEMBOURG Luxembourg SYDNEY Australia CALGARY Canada MONTREAL Canada LYON France QUITO Ecuador TORONTO Canada BRUSSELS Belgium VANCOUVER Canada STOCKHOLM Sweden VIENNA Austria ARIP = Purchasing power index for average residents 76

39 2012 Results: Average Residents Purchasing Power, ARIP Rank City Country ARIP 21 BERLIN Germany DETROIT United States SINGAPORE Singapore MUNICH Germany WELLINGTON New Zealand AMSTERDAM Netherlands LONDON Great Britain DUBLIN Ireland SAN FRANCISCO United States LEXINGTON United States PITTSBURGH United States OSAKA / KOBE Japan AUCKLAND New Zealand CLEVELAND United States SEATTLE United States MIAMI United States HELSINKI Finland HOUSTON United States LOS ANGELES United States BOSTON United States ARIP = Purchasing power index for average residents Results: Average Residents Purchasing Power, ARIP Rank City Country ARIP 41 ATHENS Greece MADRID Spain LJUBLJANA Slovenia ATLANTA United States TOKYO Japan BARCELONA Spain MINNEAPOLIS United States HONOLULU United States CHICAGO United States WASHINGTON DC United States FRANKFURT Germany SEOUL South Korea PARIS France ST PETERSBURG Russia ROME Italy TEL AVIV Israel NEW YORK United States PRETORIA South Africa MILAN Italy PRAGUE Czech Republic ARIP = Purchasing power index for average residents 78

40 2012 Results: Average Residents Purchasing Power, ARIP Rank City Country ARIP 61 JOHANNESBURG South Africa TAIPEI Taiwan, China MOSCOW Russia BAKU Azerbaijan BRATISLAVA Slovakia WARSAW Poland KUWAIT Kuwait BUCHAREST Romania REYKJAVIK Iceland DOHA Qatar LISBON Portugal BUDAPEST Hungary TALLINN Estonia HONG KONG Hong Kong, China BUENOS AIRES Argentina ISTANBUL Turkey SOFIA Bulgaria MONTEVIDEO Uruguay KIEV Ukraine NAIROBI Kenya ARIP = Purchasing power index for average residents Results: Average Residents Purchasing Power, ARIP Rank City Country ARIP 81 RIGA Latvia SANTIAGO Chile VILNIUS Lithuania KUALA LUMPUR Malaysia DUBAI United Arab Emirates RIO DE JANEIRO Brazil LIMA Peru SUZHOU China SAO PAULO Brazil BOGOTA Colombia ASUNCION Paraguay GUANGZHOU China TIANJIN China CARACAS Venezuela QINGDAO China DALIAN China CAIRO Egypt SHENZHEN China MANAMA Bahrain SHANGHAI China ARIP = Purchasing power index for average residents 80

41 2012 Results: Average Residents Purchasing Power, ARIP Rank City Country ARIP 101 BEIJING China AMMAN Jordan MEXICO CITY Mexico BANGKOK Thailand MANILA Philippines JAKARTA Indonesia NEW DELHI India MUMBAI India COLOMBO Sri Lanka ARIP = Purchasing power index for average residents Results: Expatriates Purchasing Power, EPIP Rank City Country EPIP 1 SOFIA Bulgaria NAIROBI Kenya BAKU Azerbaijan AMSTERDAM Netherlands BUCHAREST Romania LJUBLJANA Slovenia BERLIN Germany VILNIUS Lithuania CALGARY Canada VIENNA Austria MONTREAL Canada COLOMBO Sri Lanka MUNICH Germany BRUSSELS Belgium TORONTO Canada KIEV Ukraine VANCOUVER Canada WELLINGTON New Zealand RIGA Latvia BUDAPEST Hungary EPIP = Purchasing power index for expatriates 82

42 2012 Results: Expatriates Purchasing Power, EPIP Rank City Country EPIP 21 TALLINN Estonia LYON France AUCKLAND New Zealand LISBON Portugal ASUNCION Paraguay LONDON Great Britain DUBLIN Ireland MADRID Spain BRATISLAVA Slovakia WARSAW Poland PRAGUE Czech Republic BARCELONA Spain QUITO Ecuador ADELAIDE Australia PRETORIA South Africa FRANKFURT Germany NEW DELHI India NICOSIA Cyprus ST PETERSBURG Russia BUENOS AIRES Argentina EPIP = Purchasing power index for expatriates Results: Expatriates Purchasing Power, EPIP Rank City Country EPIP 41 BRISBANE Australia DETROIT United States PERTH Australia LUXEMBOURG Luxembourg JOHANNESBURG South Africa MELBOURNE Australia ROME Italy SYDNEY Australia COPENHAGEN Denmark MILAN Italy MUMBAI India PITTSBURGH United States MONTEVIDEO Uruguay SAN FRANCISCO United States TEL AVIV Israel LEXINGTON United States CLEVELAND United States TAIPEI Taiwan, China MIAMI United States ATHENS Greece EPIP = Purchasing power index for expatriates 84

43 2012 Results: Expatriates Purchasing Power, EPIP Rank City Country EPIP 61 SEATTLE United States OSLO Norway HOUSTON United States HELSINKI Finland STOCKHOLM Sweden MANILA Philippines LOS ANGELES United States KUWAIT Kuwait BOSTON United States ATLANTA United States MINNEAPOLIS United States SANTIAGO Chile MOSCOW Russia HONOLULU United States JAKARTA Indonesia CHICAGO United States GENEVA Switzerland WASHINGTON DC United States SUZHOU China PARIS France EPIP = Purchasing power index for expatriates Results: Expatriates Purchasing Power, EPIP Rank City Country EPIP 81 REYKJAVIK Iceland ZURICH Switzerland NEW YORK United States GUANGZHOU China TIANJIN China QINGDAO China RIO DE JANEIRO Brazil KUALA LUMPUR Malaysia MANAMA Bahrain CAIRO Egypt DALIAN China MEXICO CITY Mexico SAO PAULO Brazil SHENZHEN China DOHA Qatar OSAKA / KOBE Japan SEOUL South Korea TOKYO Japan SHANGHAI China BOGOTA Colombia EPIP = Purchasing power index for expatriates 86

44 2012 Results: Expatriates Purchasing Power, EPIP Rank City Country EPIP 101 CARACAS Venezuela BEIJING China HONG KONG Hong Kong, China BANGKOK Thailand DUBAI United Arab Emirates ISTANBUL Turkey AMMAN Jordan SINGAPORE Singapore LIMA Peru EPIP = Purchasing power index for expatriates 87