Lisbon fell 51 positions in the ranking of most expensive cities in the world;
The Portuguese capital has moved from 94th place (2014) to place 145 (2015);
A fast food meal in Lisbon costs on average € 5 while in Luanda, again the most expensive city in the world, can cost € 15;
The letting of t2 apartment can cost € 1450 in Lisbon and Luanda € 5,792.50
Luanda is the most expensive city in the world for the third consecutive year;
On top of the ranking list this year we find European and Asian cities: Hong Kong (2), Zurich (3), Singapore (4) and Geneva (5).
As the costs of foreign exchange transactions create obstacles for many multinational organizations, foreign exchange and currency fluctuations - resulting partly from economic and political instability - are contributing to major changes in expatriate compensation packages. The 21 global study on the 2015 Cost of Living Mercer points out that factors such as instability in the housing market and inflation of goods and services have a significant impact on the total cost of developing business in an international environment.
"As the global economy becomes increasingly interconnected, 75% of multinational organizations expect expatriation processes grow in the next two years to meet business needs," said Diogo Alarcão, Partner at Mercer "Send to other employees countries need to compete in the global market with the best talent available. Companies need to reflect accurately and reliably the cost and the expected return to the international mobility policies. "
According to the 2015 Cost of Living study of Mercer, Lisbon fell 51 places in the ranking, a significant drop in the list of most expensive cities for expatriates this year. The Lisbon city occupied the position number 94 last year, and currently is in 145th place. Which means that at this time, Lisbon is the least expensive cities for expatriates.
Tiago Borges, Market Research Officer at Mercer Iberia says "This decline Lisbon in the list of most expensive cities for expatriates due to the depreciation of the Euro against other global currencies and the still timid recovery in real estate prices and a historically low inflation, which has kept the prices of goods and services at a comparatively lower level than in other locations. "
The study also notes that Asian and European cities - particularly Hong Kong (2), Zurich (3), Singapore (4) and Geneva (5) - are on the list of most expensive cities for expatriates. The most expensive city for the third consecutive year is Luanda (1), the capital of Angola. While it is recognized as a relatively inexpensive city for the usual residents, the cost of imported goods and living conditions required by the majority of expatriate employees, lead to a significant increase in the cost of living in this city.
This study by Mercer - 2015 Cost of Living - is considered more accurate and complete in the world and is intended to help businesses as well as governments and other entities, to determine compensation allowances for their expatriate employees. New York is used as the base city, serving as a comparison for all other cities. Thus, the currency movements are measured against the US dollar.
The study includes 207 cities on five continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
"Aligning the workforce and mobility strategies, ensuring that the right employees are in the right places, is a critical element of success of international mobility policies," said Diogo Alarcão. "Properly compensate employees on international projects is as important as expensive. It is therefore important to have reliable, timely and detailed information to determine the right compensation package to the right person in the right place "
According to Diogo Alarcão, "this is particularly important when companies start their mobility programs have a limited number of candidates and the success of its operations depends to a large-scale international projects involving the expatriation of its employees for about periods less long. It is essential that these organizations have constantly updated and transparent information that enables them to reward fairly and in line with market requirements expatriate employees. "