Harare the cheapest city in the world

business.iafrica.com Posted Tue, 21 Jan 2003

Tokyo and Osaka remain the world's most expensive cities, while political turmoil and weaker currencies have put Zimbabwe's capital Harare and South American cities in the cheapest list, a new report has found.

London has dropped a couple of notches from a year ago to seventh place, although it remains the most expensive city in the European Union, with Oslo jumping to third costliest overall, overtaking Hong Kong which fell to fourth, the Economist Intelligence Unit (EIU) said in the report received in Singapore.

New York, the most expensive city in North America, fell to 11th place overall from 10th place last year.

"All euro-zone cities have become comparatively more expensive over the past year as the currency has strengthened — and as prices were hiked during the changeover to euro notes and coins," it said.

On the other end of the spectrum, cities located in countries mired in political and economic turmoil saw their cost of living indices plunge.

Harare, the co-host of the upcoming Cricket World Cup, is now the cheapest city in the world, ranking 134th this year after falling 63 notches from its year 2002 ranking of 71st, EIU said.

Buenos Aires in Argentina fell 109 places to number 130 in the rankings following the collapse of its currency.

"Other South American cities such as Caracas in Venezuela and Montevideo in Uruguay are also big fallers," it said.

Caracas, crippled by a general strike aimed at toppling President Hugo Chavez, dropped 53 notches to rank 109th. Montevideo plunged 75 places to rank 121st.

New York and Chicago, in 11th and 13th places overall, are the most expensive North American cities, while Atlanta is the cheapest among the American cities covered by the poll.

Tokyo, Osaka, Hong Kong and Singapore remained the cosliest cities in Asia. Seoul rose to 13th overall worldwide from being number 21 due to a strengthening of its currency.

In Asia, Indian cities offer the best bargains with New Delhi and Bombay the cheapest.

"Australian cities all rose in the rankings, due to relatively high inflation and a strengthening Australian dollar. Sydney is the most expensive and Adelaide the cheapest," the statement said.

New Zealand cities have also become costlier, EIU said.

Libreville in Gabon is the most expensive city in Africa, followed by Abidjan in the Ivory Coast.

Tel Aviv is the most expensive in the Middle East "although a weakening shekel (currency) saw it become relatively cheaper in 2002."

Tehran is the cheapest city in the Middle East and the second cheapest in the world.

AFP