Zurich Tops List as the Most Expensive City in the World and Europe for 2023 - The Economist Ranking

Two Swiss cities - Zurich and Geneva - have become the most expensive in the world and in Europe this year, according to the annual ranking of the British magazine The Economist, which analysed 173 cities on the planet.

Zurich, in particular, climbed five positions compared to the previous year, dethroning New York. Switzerland's largest city has consistently been considered costly for living, previously securing the top spot in 2020 and consistently remaining in the top ten. Its dominance in this year's ranking is primarily attributed to the significant strengthening of the Swiss Franc by more than 10% against the US Dollar recently. New York serves as the benchmark city in the survey, so when the country's currency strengthens, cities typically rise in the ranking.

Researchers emphasize that the primary factor in determining the most expensive and cheapest cities to live in is the inflation rate. While compiling the ranking, analysts compare prices for more than 200 goods and services.

"Worldwide inflation remains high: prices for the 200 products and services we track have increased on average by 7.4% over the past year. This figure has slightly decreased from 8.1% in 2022 but remains significantly higher than the 2.9% average over the previous five years," the study states.

Cities in Western Europe, such as Copenhagen, Dublin, and Vienna, occupy nearly half of the top twenty positions in the ranking.

Prague, Bratislava, and Baku are recognized as the most expensive cities in Eastern Europe.

Kyiv secured the 132nd position. In Eastern Europe, its neighbours in the ranking are Moscow and Budapest. In 2022, the Ukrainian capital did not participate in the ranking due to the war, and in 2021, Kyiv held the 88th position.

One of the reasons for the sharp change in the ranking's leaders is attributed to rising prices. Another factor is the European Central Bank's policy this year, which raised interest rates six times in 2023 to curb inflation in Europe. This led to a 7% increase in the euro against the US dollar.

North American cities have seen a decline in the ranking this year.

The Top Ten Most Expensive Cities to Live in for 2023:

1. Zurich, Switzerland, and Singapore
2. Geneva, Switzerland, and New York, USA
3. Hong Kong, China
4. Los Angeles, USA
5. Paris, France
6. Tel Aviv, Israel, and Copenhagen, Denmark
7. San Francisco, USA

The Cheapest Cities in the World for 2023: Damascus and Tehran.