Toronto’s skyline.Fred Lum/The Globe and Mail
Toronto and Vancouver have become much more affordable cities for expatriates to live in thanks in large part to the weaker Canadian dollar, according to the latest global cost of living ranking by Mercer.
The 21st annual survey indicates that Vancouver – Canada's highest ranked city – has fallen 23 places to No. 119, while Toronto has dropped 25 spots to No. 126. Montreal dropped 17 rungs to No. 140 and Calgary fell 21 spots to No. 146.
The ranking lists a total of 207 cities, based on Mercer's cost of living and rental accommodation costs derived from a survey conducted in March.
The costliest city, for the third year in a row, is Luanda, the capital of Angola. Although relatively inexpensive, the cost of imported goods and safe living conditions are steep, Mercer said in a news release Wednesday.
Nos. 2, 3, 4 and 5 are Hong Kong, Zurich, Singapore and Geneva, followed by Shanghai, Beijing, Seoul, Bern and N'Djamena, the capital of Chad.
New York is the baseline city, at No. 16. U.S. cities climbed dramatically because of the strengthening of the greenback against other world currencies. Los Angeles climbed 26 places to reach No. 36, while Chicago moved up 43 rungs to No. 42 and Washington, D.C. rose 42 notches to No. 50.
The cheapest places to live are Bishkek in Kyrgyzstan (207), Windhoek in Namibia (206) and Karachi, Pakistan (205).
"The Canadian dollar continues to weaken against the U.S. dollar, triggering major slips in this year's ranking," Mercer's talent leader for Canada, Gordon Frost, said.
Mercer's survey is designed to help multinational companies and governments determine appropriate compensation allowances for their expatriate employees. The survey looks at the comparative costs of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment.
Bertrand Marotte