ab Prices and earnings 2015 Do I earn enough for the life I want? Chief Investment Office WM September 2015 Prices and earnings 2015 Do I earn enough for the life I want? Africa Eastern Europe North America South America Cairo (Egypt) Johannesburg (South Africa) Nairobi (Kenya) Bratislava (Slovakia) Bucharest (Romania) Budapest (Hungary) Kiev (Ukraine) Ljubljana (Slovenia) Moscow (Russia) Prague (Czech Republic) Riga (Latvia) Sofia (Bulgaria) Tallinn (Estonia) Vilnius (Lithuania) Warsaw (Poland) Chicago (United States) Los Angeles (United States) Mexico City (Mexico) Miami (United States) Montreal (Canada) New York City (United States) Toronto (Canada) Bogotá (Colombia) Buenos Aires (Argentina) Lima (Peru) Rio de Janeiro (Brazil) Santiago de Chile (Chile) São Paulo (Brazil) Asia Bangkok (Thailand) Beijing (China) Hong Kong (China) Jakarta (Indonesia) Kuala Lumpur (Malaysia) Manila (Philippines) Mumbai (India) New Delhi (India) Seoul (South Korea) Shanghai (China) Taipei (Taiwan) Tokyo (Japan) Western Europe Oceania Amsterdam (Netherlands) Athens (Greece) Barcelona (Spain) Berlin (Germany) Brussels (Belgium) Copenhagen (Denmark) Auckland (New Zealand) Sydney (Australia) Middle East Dublin (Ireland) Frankfurt (Germany) Geneva (Switzerland) Helsinki (Finland) Lisbon (Portugal) London (Great Britain) Luxembourg (Luxembourg) Lyon (France) Madrid (Spain) Milan (Italy) Munich (Germany) Oslo (Norway) Paris (France) Rome (Italy) Stockholm (Sweden) Vienna (Austria) Zurich (Switzerland) Doha (Qatar) Dubai (United Arab Emirates) Istanbul (Turkey) Manama (Bahrain) Nicosia (Cyprus) Tel Aviv (Israel) Montreal Toronto Istanbul Chicago New York City Nicosia Los Angeles Tel Aviv Cairo Miami Mexico City Nairobi Bogotá Lima São Paulo Rio de Janeiro Johannesburg Santiago de Chile Buenos Aires Helsinki Stockholm Oslo Tallinn Riga Copenhagen Dublin Amsterdam London Paris Luxembourg Prague Munich Zurich Lyon Geneva Kiev Bratislava Vienna Milan Budapest Ljubljana Lisbon Bucharest Sofia Rome Madrid Moscow Warsaw Frankfurt Brussels Vilnius Berlin Barcelona Athens Beijing Seoul Taipei Doha Dubai Tokyo Shanghai Manama New Delhi Hong Kong Mumbai Manila Bangkok Kuala Lumpur Jakarta Sydney Auckland Contents Editorial Methodology 5 6 Overview Price levels 8 Wage levels 9 Domestic purchasing power 10 Working time required to buy… 12 Exchange rates used and inflation 14 Price comparison Total expenditure on goods and services 18 Food 20 Women’s and men’s clothing 22 Household appliances 23 Home electronics 24 Housing 25 Public transport 26 Restaurants and hotels 27 Services 28 City breaks 30 Wage comparison International wage comparison Taxes and social security contributions Working hours and vacation days 32 34 36 Appendix 38 4 Prices and earnings 2015 Editorial Andreas Höfert Chief Economist Daniel Kalt Chief Economist Switzerland Caroline Steiblin Project Manager Prices and earnings Frank-Stephan Graef Project Manager Prices and earnings Dear reader Global exchange rates moved sufficiently of late to prompt talk of a “currency war”. States and currency zones are hoping for a weak currency to generate momentum in their economies, especially in the export sector. The measures of various central banks aimed at staving off deflation are also affecting exchange rates. These circumstances make it more difficult to compare purchasing power in different currency zones. Against this backdrop, we are particularly pleased to present you with the 16 th edition of our Prices and earnings study, in which we compare purchasing power in 71 cities across the globe. Our analysis of more than 68,000 datapoints highlights the effects of political and economic events on prices and earnings, and reveals significant changes compared with the previous study three years ago. The cities of Zurich and Geneva, for instance, have become markedly more expensive since the last study – mainly due to the Swiss National Bank‘s ­decision to abandon the EURCHF minimum exchange rate early this year. Three years ago, the minimum exchange rate was set at CHF 1.20. Life in cities within the eurozone and in Tokyo, on the other hand, has become less expensive as the euro and yen have depreciated against the US dollar. And with the currencies of certain emerging markets falling significantly, price drops have been even more pronounced in those parts of the world. Prices and earnings is now available at www. ubs.com/pricesandearnings, from the UBS Newsstand and in the iOS app. We are also launching new open data options, so you can download all raw data from the first report in 1971 to the most recent 2015 figures for free. We would like to thank all the participants in our survey, including students, UBS employees and various people around the world who tirelessly collected first-rate data for this report. We would also like to thank our colleagues at Communications & Branding and WM Innovation for their cooperation in producing this report. We hope you find it interesting and informative reading. Prices and earnings 2015 5 Methodology Comparison of prices and earnings Between the end of March and end of April 2015, we completed a standardized survey on prices of 122 goods and services, and earnings for 15 professions in 71 cities worldwide. The survey was conducted locally by mutually independent observers. More than 68,000 data points were collected and included in our calculations of the indicators in this report. To effectively compare cities, we converted all prices and earnings in local currencies to a common currency, the US dollar (USD). Average exchange rates from the data collection period were used to minimize the effect of daily price fluctuations. The exchange rates are listed on pages 14 –15. While we originally started the survey with 72 cities, we needed to remove Caracas, Venezuela. Due to the current complex political and economic situation in the country, with large fluctuations in inflation and exchange rates, we decided that the results for it would not represent current circumstances. Reference basket of goods To make an effective comparison of purchasing power worldwide, a standardized basket of goods and services is required, even though consumer habits and preferences vary greatly. Our reference basket of 122 goods and services is based on the monthly consumption habits of a European three-person family. If products were not available in some cities, or deviated too far from our parameters, local representative substitutes were sometimes used. To make up for the missing coverage, individual items were weighted ­differently as a correction. We attained a coverage level of almost 70% of the EU’s harmonized index of consumer prices (HCIP) this year. Changes in consumer habits stemming from technological developments were accounted for by updated specifications for electronic products. The iPhone 4S from 2012, for instance, was replaced with an iPhone 6. We also expanded data collection possibilities for our housing section to get a more accurate picture of local accommodation worldwide. Also, the furnished four-room apartment was changed to a furnished two-room apartment. Reference profile of working populations As with our prices section, we created a reference profile of 15 professions, representing the structure of the working population in Europe. We included profiles of workers of varying ages, family status, work experience and education levels. To offer a fuller picture, we introduced the profession of a hospital nurse to replace the financial analyst. This change affected our weighting of the other professions, a fact to consider when comparing this version of the report to those of previous years. We also expanded our social security contributions section considerably to encapsulate both employee and employer contributions, providing a more realistic cost of the global workforce. Note Individual cities by geographical region are found on the map on pages 2 – 3. Price, earnings, index, time, and percentage figures are rounded off in most cases to improve readability. The index values are calculated on data collected in the survey, relative to a reference city. The sample size per city may not be statistically representative for single data points. Our weightings are based on Eurostat data for EU countries. 6 Prices and earnings 2015 ОУЕГУЁЕИ/ Overview Price levels Price levels Cities1 The price level rankings reveal the relative cost of goods and services worldwide. Zurich, Geneva, and New York City have the highest prices, over 2.5 times higher than those in Bucharest, Sofia, and Kiev, with the lowest. Istanbul, Doha, and Lyon are middle-ranking cities; prices there are somewhat closer to those of high-ranking cities than to those of lower ranked ones. Do I live in an expensive city? When rents are included in the price level index, almost all city indices decrease in relation to New York City, with an average decrease of 17%. Hong Kong is the only exception, gaining over 5% due to high rents, and moving up 13 spots in our ranking. Rents also make New York City the most expensive city, and Sofia the least expensive. Price levels including rents show how large an impact rents have on monthly spending. Assuming similar incomes, residents of Hong Kong must allocate almost 8% more of their income to housing than those in New York City. By comparison, residents in Zurich spend almost 8% less on rent than New York City residents. Methodology The composition of our reference basket of goods and services represents the spending habits of a three-person European family. The prices of the 122 goods and services are weighted by monthly consumption. For example, we assume that a family in Europe consumes almost 15 kilos (33 pounds) of vegetables every month, but only buys a new personal computer every 2.5 years. Price level calculations are based on the cost of a basket of 122 goods and services including rent. For our index, these reference basket prices are shown as relative to our reference city, New York City. Rent values were calculated by weighting the prices of our three types of housing equally (see page 25 for more details). 1 Listed according to value of indexed (price level excluding rent) * New York City = Index 100 8 Prices and earnings 2015 Zurich Geneva New York City Oslo Copenhagen London Chicago Tokyo Auckland Sydney Seoul Toronto Milan Stockholm Montreal Miami Los Angeles Helsinki Hong Kong Paris Luxembourg Tel Aviv Dubai Buenos Aires Dublin Taipei Brussels Rome Manama Frankfurt Munich Vienna Amsterdam Shanghai Istanbul Doha Lyon Berlin Barcelona Beijing Madrid Nicosia Sao Paulo Athens Rio de Janeiro Bangkok Lisbon Mexico City Tallinn Ljubljana Bogotá Jakarta Bratislava Santiago de Chile Lima Kuala Lumpur Moscow Manila Vilnius Nairobi Warsaw Cairo Budapest Johannesburg Riga Prague New Delhi Mumbai Bucharest Sofia Kiev Excl. rent Incl. rent 108.7 106.1 100.0 92.9 88.0 84.7 83.5 83.1 82.8 80.5 79.2 78.1 77.9 76.9 76.2 76.1 76.0 74.3 72.9 72.6 72.3 72.0 71.1 70.4 70.3 67.3 67.2 67.1 66.6 65.8 65.5 65.4 65.3 64.9 64.8 64.8 64.8 63.3 63.2 61.4 60.6 60.3 59.4 58.9 57.9 57.5 55.5 54.7 54.4 54.0 53.6 53.3 53.3 52.8 52.2 52.0 51.9 51.3 50.9 50.3 48.8 48.1 47.6 46.6 45.8 45.6 45.5 44.9 43.8 39.0 38.1 92.6 91.8 100.0 79.9 74.3 79.5 76.7 70.6 67.6 72.5 64.2 63.7 64.5 62.8 58.9 67.7 67.4 63.2 76.8 63.8 66.1 61.4 66.1 56.1 63.1 62.7 57.3 57.1 55.4 55.1 56.1 53.4 55.5 54.3 53.0 61.4 51.2 51.3 50.5 53.2 50.4 48.4 49.5 47.5 49.2 46.4 45.3 46.2 44.0 44.0 43.7 41.6 42.6 44.0 42.8 41.2 45.2 41.1 40.9 40.5 39.6 38.7 38.6 40.5 37.1 36.4 36.9 37.2 34.5 30.0 30.3 Wage levels Wage levels Cities1 Wage levels indicate earnings worldwide. Workers in cities with high relative gross salaries (Zurich, Geneva and Luxembourg) receive pay that is on average 19 times those in Nairobi, Jakarta and Kiev. Cities such as Tel Aviv, Barcelona and Seoul ended up in the middle of our rankings. Their workers receive nominal gross salaries a little under onehalf of those living in the highest-ranking cities, but seven times those from the lowest-ranking c­ ities. Would I earn more in another city? Net wages take into account deductions, and will usually shift all cities down in rankings compared to New York City. Relatively high deductions, stemming from significant social security contributions and taxes, are seen in Copenhagen, Brussels and Milan. If one considers net instead of gross wages, wage-level ranking drops an average of 22%. Then there are cities, such as Manama, Doha and Dubai, whose net-wage index rises by an average of 16% due to comparatively lower deductions. Net wages are a good indication of expendable income: a worker in Zurich will have almost 23 times the amount of money to spend than a similar worker in Kiev. Methodology Gross hourly wages are calculated from the survey’s gross annual earnings data divided by the annual number of working hours. Net hourly earnings are calculated by removing taxes, social security and other special deductions from gross annual income for each city, and dividing it by annual working hours. Hourly wages are weighted according to the distribution of our 15 professions. 1 Listed according to gross value of the index * New York City = Index 100 Zurich Geneva Luxembourg New York City Miami Copenhagen Sydney Oslo Los Angeles Chicago Montreal Stockholm London Brussels Toronto Auckland Tokyo Dublin Vienna Helsinki Munich Frankfurt Amsterdam Berlin Paris Rome Nicosia Lyon Milan Barcelona Madrid Hong Kong Tel Aviv Manama Seoul Dubai Taipei Sao Paulo Ljubljana Johannesburg Doha Lisbon Athens Bratislava Rio de Janeiro Istanbul Tallinn Santiago de Chile Warsaw Buenos Aires Vilnius Moscow Prague Riga Shanghai Kuala Lumpur Bogota Bangkok Lima Budapest Bucharest Beijing Mexico City Sofia Manila Cairo Mumbai New Delhi Nairobi Jakarta Kiev Gross Net 131.5 130.3 106.4 100.0 92.7 92.4 89.8 87.9 87.6 85.4 77.4 76.1 75.8 72.9 71.7 70.1 70.1 68.8 68.5 67.8 67.8 66.6 65.3 64.0 62.7 60.2 59.2 58.6 58.6 51.6 51.0 49.4 46.5 45.9 45.9 40.4 35.0 34.7 33.8 32.8 32.2 31.8 29.9 28.3 26.8 26.4 26.1 23.2 23.2 22.6 21.7 21.3 20.1 18.2 18.2 17.8 17.5 16.9 16.2 15.9 14.0 13.4 12.1 11.5 9.6 8.3 8.3 7.6 6.7 6.4 6.1 141.7 135.1 97.0 100.0 93.0 59.0 83.8 80.4 88.2 84.5 78.2 63.8 72.3 60.9 69.4 68.6 70.5 64.2 69.7 62.7 68.3 67.2 55.4 64.6 67.2 54.2 64.2 62.7 53.1 46.9 46.1 51.3 47.2 53.1 50.2 46.9 38.7 38.7 32.8 30.6 37.3 32.1 28.0 27.7 30.3 25.8 24.4 25.1 22.5 26.2 21.4 21.4 20.3 17.0 19.2 20.3 20.3 18.8 18.8 15.9 14.0 14.4 12.9 12.2 9.2 8.9 9.2 8.5 6.3 7.0 6.3 Prices and earnings 2015 9 Overview Domestic purchasing power subject to… Domestic purchasing power Cities Taken separately, price and earnings data has proven interesting to interpret, but, when compared, such data enables us to reach conclusions about worldwide purchasing power. If one takes net hourly pay as the benchmark, earners in Luxembourg have the highest purchasing power, more than 10 times greater than for earners in Jakarta, the city exhibiting the lowest purchasing power of all surveyed ­cities in 2015. What are my wages actually worth? Our basket of goods represents the monthly consumption of a three-person family in Europe. The residents of major cities in Switzerland and the USA can afford 20 and 18 baskets per year respectively, while those of Western European ­cities such as London, Lyon and Oslo can buy a basket every month. Our basket becomes a challenge for the inhabitants of cities in Asia and Africa (who can afford only a basket every four months, on average). This can be partly explained by differing consumption habits, but it also indicates that families in some cities need supplementary incomes to support a European standard of life. Methodology To calculate the first two parts of the purchasing power indicator, we divided gross and net hourly wages for each city by the respective cost of our basket of goods, excluding rent, and indexed relative to New York City. The third part is calculated as an indexed ranking based on how many baskets a worker can purchase annually. We divided net annual income for each city by the cost of the basket (excluding rent). This indicator is sorted by the indexed purchasing power of net hourly wages. Rent prices were excluded, as their variability among the housing choices presented in our survey may lead to different rankings of cities in combined price and earnings indicators. * New York City = Index 100 10 Prices and earnings 2015 Luxembourg Zurich Geneva Miami Los Angeles Nicosia Vienna Sydney Munich Berlin Montreal Frankfurt Chicago New York City Lyon Dublin Paris Brussels Toronto Oslo London Tokyo Amsterdam Helsinki Stockholm Auckland Rome Manama Madrid Barcelona Hong Kong Milan Copenhagen Johannesburg Dubai Tel Aviv Seoul Athens Sao Paulo Ljubljana Lisbon Doha Taipei Bratislava Rio de Janeiro Santiago de Chile Warsaw Tallinn Vilnius Moscow Istanbul Kuala Lumpur Bogotá Buenos Aires Riga Lima Prague Budapest Bangkok Bucharest Sofia Shanghai Mexico City Beijing Mumbai New Delhi Manila Cairo Kiev Nairobi Jakarta Gross hourly pay  Net hourly pay Net annual income  147.1 120.8 122.6 121.5 115.1 98.0 103.6 111.5 103.2 101.9 101.4 101.2 102.0 100.0 90.4 99.1 86.5 108.4 91.5 94.4 89.2 84.4 100.0 91.2 98.9 84.6 89.5 68.6 84.0 81.8 67.8 75.7 104.8 70.5 56.8 64.6 57.9 65.9 55.6 62.2 59.1 49.7 52.2 55.1 44.5 43.7 47.5 47.9 42.3 40.3 40.9 34.2 32.6 32.2 39.6 31.2 34.2 33.2 29.1 28.3 29.2 27.9 22.5 22.1 18.4 16.7 18.4 16.5 16.5 13.0 11.7 134.3 130.5 127.5 122.1 116.0 106.7 105.4 104.2 104.0 102.8 102.6 102.0 101.1 100.0 96.9 92.6 92.4 90.9 89.1 86.6 85.3 85.2 85.1 84.5 82.9 82.9 80.8 79.6 76.2 74.1 70.4 68.5 67.2 66.0 65.9 65.8 63.4 62.3 62.2 60.6 59.3 57.8 57.6 53.5 50.4 47.6 45.9 44.5 41.7 40.7 40.1 38.8 37.8 37.4 37.3 36.3 34.8 33.5 32.9 32.3 31.0 29.6 23.9 23.9 20.3 18.6 17.9 17.7 16.4 12.8 12.8 123.8 135.1 128.3 122.6 121.1 107.2 95.8 103.2 96.9 98.5 99.1 97.0 111.2 100.0 85.5 88.7 80.2 84.5 95.7 81.7 80.4 94.7 79.6 75.9 79.4 89.4 76.0 89.5 71.4 69.4 99.3 62.7 61.8 66.0 78.0 72.6 66.4 60.7 61.3 60.8 56.1 65.1 66.7 53.4 47.6 53.6 43.7 41.8 38.7 36.3 44.3 40.7 42.9 38.4 36.8 38.4 33.0 34.7 39.0 31.6 30.5 32.9 29.3 25.4 25.0 22.3 18.9 20.0 16.2 15.2 14.6 Wage level Price level um ba i Beijing ity Yo rk C w de Ne x1 00 ) 100 90 80 70 60 50 40 30 20 10 0 (In i rob Nai M Zurich Domestic purchasing power don Lon Ranking by index Tokyo w rsa Wa Fra nk fu is Hong Kon g Rio de Par Ja n eir o rt Wage level Price level Domestic purchasing power Highest Highest Highest 131.5 108.7 135.1 Lowest Lowest Lowest 6.1 38.1 14.6 Zurich Zurich Zurich Kiev Kiev Jakarta Prices and earnings 2015 11 Overview Working time required to buy... Some consumer goods are available all over the globe. We decided to feature four in our section that calculates how much time an average worker in each city must work to earn enough to purchase each one. As staple consumer goods, the McDonald’s Big Mac and the Apple iPhone will be the same quality and nature whether bought in Doha or Rio de Janeiro. This makes their worldwide prices and affordability comparable. Workers in Hong Kong only have to work on average nine ­minutes to be able to buy a Big Mac, while workers in Nairobi have to work almost three hours. Who works harder to buy a Big Mac? The distribution of city rankings changes according to the reference goods being bought. Oslo, in the lower half of the table for buying bread, jumps to the top for rice. Workers there can afford it in one-eighteenth of the time that their counterparts in New Delhi require. For the iPhone, workers in cities such as Zurich and New York City require on average less than three days on the job to be able to grab one. In contrast, workers in Kiev must labor, on average, over 13 weeks to earn enough for the same phone. Workers in Buenos Aires cannot access official markets to purchase the iPhone 6 locally. Methodology Prices of each product were an average from all survey participants and, where possible, were compared to the manufacturers’ official local retail price. The price of each product was then divided by the net hourly wage for our 15 professions and converted to either minutes or hours. n.a. = not available 12 Prices and earnings 2015 Working time required to buy Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich 1 Big Mac in min. 1 kilo of bread in min. 1 kilo of rice in min. 1 iPhone 6 16GB, in hrs. 16 26 13 37 21 42 13 35 24 16 44 44 29 62 11 20 18 17 15 13 11 16 9 34 67 17 55 23 38 22 15 12 11 10 16 19 20 87 78 11 18 13 20 40 13 173 50 11 11 19 15 30 34 32 18 32 25 18 35 40 17 11 13 29 21 10 15 12 29 25 11 7 20 13 47 14 40 9 18 13 14 11 14 57 32 10 13 19 9 6 10 5 10 18 22 70 10 26 17 45 16 11 6 10 12 10 13 5 83 46 11 16 12 12 27 7 44 23 12 5 20 10 11 20 18 10 15 16 22 37 14 18 10 10 15 12 14 12 10 19 20 5 7 34 5 17 7 36 13 18 15 9 28 20 21 66 6 11 12 13 8 14 4 10 13 23 58 13 44 13 15 8 25 16 5 7 12 7 11 34 22 7 14 5 24 49 5 62 73 16 9 4 9 15 26 9 14 13 5 19 25 28 11 5 14 12 12 10 7 6 17 24 5 49.8 98.2 44.6 149.6 59.1 217.8 43.3 143.7 100.8 46.1 219.1 183.7 n.a. 353.4 28.4 54.6 69.9 55.8 43.4 41.6 21.6 44.4 51.9 132.2 468.0 86.9 627.2 136.3 192.2 88.6 85.4 41.2 27.2 28.2 47.2 60.5 62.7 334.2 217.6 27.0 53.4 32.1 158.3 349.4 40.9 468.0 360.3 24.0 44.9 37.6 42.2 143.2 172.5 139.9 53.7 130.8 109.2 57.2 163.8 231.3 46.9 34.0 69.2 115.5 75.3 40.5 37.2 40.0 131.6 141.6 20.6 60 hours (5 days) 60 minutes (1 hour) Zurich 20.6 hrs 11 min 5 min 5 min London 41.2 hrs 12 min 6 min 16 min Hong Kong 51.9 hrs 9 min 18 min 13 min Warsaw 141.6 hrs 25 min 20 min 24 min 1 iPhone 6 16GB 1 Big Mac 1 kilo of bread 1 kilo of rice Tokyo 40.5 hrs 10 min 14 min 10 min Frankfurt 41.6 hrs 14 min 10 min 13 min Rio de Janeiro 139.9 hrs 32 min 18 min 9 min Nairobi 468 hrs 173 min 44 min 62 min New York City 24 hrs 11 min 12 min 16 min Paris 42.2 hrs 15 min 10 min 9 min Beijing 217.8 hrs 42 min 40 min 36 min Mumbai 349.5 hrs 40 min 27 min 49 min Prices and earnings 2015 13 Overview Exchange rates used and inflation Changing exchange rates should – in theory and in the long run – compensate for differences in inflation across countries and cities. If US inflation is 2% higher than the Eurozone’s for an extended time, the US dollar should depreciate 2% per year against the euro. However, exchange rates tend to fluctuate more than inflation differences across currency areas, due to political events, economic developments, and/or monetary policy decisions by central banks. This helps to explain the relative movements of cities in our rankings. The Swiss National Bank dropped the 1.20 EURCHF floor on January 15, 2015. The impact of this decision was still being reflected in exchange rates a few months later, when we were collecting data. The Swiss franc appreciated 5% against the US dollar between the beginning of the year and April. This greatly affected our indicators, as Zurich and Geneva both rose to the top in price and wage levels. Similarly, the euro had lost almost one-quarter of its value against the US dollar from mid-2014 until the end of the first quarter of 2015, which caused Eurozone cities to plunge in our price and wage-level rankings. How stable is my currency? The trade and financial sanctions imposed on Russia by Western Europe and the USA since the Ukraine conflict in mid-2014 has had a sizeable impact on the Russian ruble, which has lost almost 42% of its value in US dollar terms since 2012. The Ukrainian hryvnia also experienced an over 64% drop relative to the US dollar after the Ukrainian ­central bank stopped supporting its reserves in early 2014. This also led to 12% local inflation that year. Both Russia and Ukraine plummeted in our rankings, with Kiev now at the bottom of our price and wage-level charts. 14 Prices and earnings 2015 Economic and political instability in South America greatly affected exchange rates, placing certain countries in unfavorable positions. The Brazilian real has depreciated almost 35% against the US dollar since 2012 due to continuously declining foreign trade. This resulted in official inflation figures of over 6% in 2013 and 2014. Countries like Argentina and Colombia faced similar fates. The Asian scene is mixed. The Japanese yen lost value but the South Korean won appreciated versus the US dollar. Japan has yet to experience the growth promised by Abenomics, introduced in 2013, though inflation has risen from 0.0% in 2012 to 2.7% in 2014. The South Korean won has gained over 6% against the US dollar since 2012, with inflation falling from 2.2% in 2012 to 1.3% in 2014. Overview Exchange rates  Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Local currency (LC) Comparison Exchange Value USD/LC 2015 1 USD/LC ∆% ∆2015/2012 2 EUR/LC 2015 1 EUR/LC ∆% ∆2015/2012 2 EUR EUR NZD THB EUR CNY EUR COP EUR EUR RON HUF ARS EGP USD DKK QAR AED EUR EUR CHF EUR HKD TRY IDR ZAR UAH MYR PEN EUR EUR GBP USD EUR EUR EUR BHD PHP MXN USD EUR CAD RUB INR EUR KES INR USD EUR NOK EUR CZK EUR BRL EUR CLP BRL KRW CNY BGN SEK AUD TWD EUR ILS JPY CAD EUR EUR PLN CHF 1 1 1 1 1 1 1 100 1 1 1 100 1 1 1 1 1 1 1 1 1 1 1 1 1000 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 100 1 1 1 1 1 1 1 1 1 100 1 100 1 1 1 1 1 1 1 1 1 1 1 1 1 1.081 1.081 0.759 0.031 1.081 0.161 1.081 0.040 1.081 1.081 0.245 0.361 0.113 0.131 1.000 0.145 0.275 0.272 1.081 1.081 1.041 1.081 0.129 0.377 0.077 0.083 0.044 0.276 0.321 1.081 1.081 1.496 1.000 1.081 1.081 1.081 2.652 0.023 0.066 1.000 1.081 0.810 0.019 0.016 1.081 1.070 0.016 1.000 1.081 0.127 1.081 0.039 1.081 0.328 1.081 0.163 0.328 0.092 0.161 0.553 0.116 0.773 0.032 1.081 0.254 0.008 0.810 1.081 1.081 0.269 1.041 –16.50 –16.50 –3.31 –4.40 –16.50 1.90 –16.50 –28.82 –16.50 –16.50 –16.32 –19.19 –49.98 –20.83 – –16.89 0.01 –0.03 –16.50 –16.50 –3.47 –16.50 0.15 –32.50 –28.92 –33.19 –64.39 –15.41 –14.92 –16.50 –16.50 –6.92 – –16.50 –16.50 –16.50 –0.01 –4.25 –11.77 – –16.50 –18.92 –42.86 –14.67 –16.50 –10.57 –14.67 – –16.50 –25.75 –16.50 –23.38 n.a. 3 –35.64 –16.50 –20.07 –35.64 5.49 1.90 –16.53 –19.64 –23.35 –5.25 –16.50 –3.30 –33.23 –18.92 –16.50 n.a.4 –11.86 –3.47 1.000 1.000 0.702 0.028 1.000 0.149 1.000 0.037 1.000 1.000 0.227 0.334 0.104 0.121 0.925 0.134 0.254 0.252 1.000 1.000 0.963 1.000 0.119 0.349 0.071 0.077 0.041 0.255 0.297 1.000 1.000 1.383 0.925 1.000 1.000 1.000 2.453 0.021 0.061 0.925 1.000 0.749 0.018 0.015 1.000 0.990 0.015 0.925 1.000 0.117 1.000 0.036 1.000 0.303 1.000 0.151 0.303 0.085 0.149 0.511 0.107 0.715 0.030 1.000 0.235 0.008 0.749 1.000 1.000 0.248 0.963 – – 15.66 14.53 – 21.97 – –14.57 – – 0.25 –3.25 –40.04 –5.19 19.81 –0.45 19.82 19.79 – – 15.64 – 19.98 –19.17 –14.85 –19.94 –57.32 1.33 2.04 – – 11.47 19.81 – – – 19.47 14.52 5.70 19.81 – –2.89 –31.50 1.94 – 7.43 1.94 19.81 – –11.12 – –8.29 n.a.3 –22.94 – –4.33 –22.94 26.32 21.97 –0.01 –3.76 –8.25 13.50 – 15.90 –20.01 –2.89 – n.a.4 5.62 15.64 Source: Bloomberg 1 Average exchange rates for survey period (March – April 2015) Movement in exchange rate from 2012 to 2015: appreciation of local currency (LC) +; depreciation of local currency (LC) – 2 3 Eurozone member since Jan. 2014 4 Eurozone member since Jan. 2015 n.a. = not available Prices and earnings 2015 15 Overview Inflation 2012 – 2014 1 Cities 2012 2013 2014 Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires 2 Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei 2 Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich 2.5 1.5 0.9 3.0 2.4 2.7 2.0 3.2 3.6 2.8 3.3 5.7 10.8 7.1 2.1 2.4 1.9 0.7 1.7 2.0 –0.7 2.8 4.1 8.9 4.3 5.7 0.6 1.7 3.7 2.8 2.6 2.8 2.1 2.7 2.0 2.4 2.8 3.2 4.1 2.1 3.0 1.5 5.1 9.3 2.0 9.4 9.3 2.1 2.4 0.7 2.0 3.3 2.2 5.4 3.0 3.0 5.4 2.2 2.7 3.0 0.9 1.8 1.9 3.9 1.7 0.0 1.5 2.5 3.1 3.6 –0.7 2.5 –0.9 1.3 2.2 1.4 2.6 1.5 2.0 1.4 1.1 4.0 1.7 10.9 9.4 1.5 0.8 3.1 1.1 0.5 1.5 –0.2 1.5 4.4 7.5 6.4 5.4 –0.3 2.1 2.8 0.3 1.8 2.6 1.5 1.7 0.9 1.4 3.2 3.0 3.8 1.5 1.2 0.9 6.8 10.9 1.5 5.7 10.9 1.5 –0.4 2.1 0.9 1.4 0.0 6.2 1.2 1.8 6.2 1.3 2.6 0.9 0.0 2.4 0.8 2.8 1.5 0.4 0.9 2.0 1.1 1.0 –0.2 1.0 –1.3 0.8 1.9 –0.1 2.0 0.9 2.9 –0.1 0.3 1.1 –0.2 23.9 10.1 1.6 0.6 3.1 2.3 0.2 0.9 0.0 1.0 4.4 8.9 6.4 6.4 12.2 3.1 3.2 –0.3 0.2 1.5 1.6 0.6 0.5 –0.1 2.8 4.1 4.0 1.6 0.2 1.9 7.8 6.4 0.9 6.9 6.4 1.6 –1.4 2.0 0.5 0.3 0.6 6.3 0.2 4.4 6.3 1.3 2.0 –1.4 –0.2 2.5 1.2 –0.1 0.5 2.7 1.9 1.6 0.1 0.1 0.0 16 Prices and earnings 2015 Source: World Bank, International Monetary Fund 1 Annual change of average consumer prices (in percent) 2 Source: National statistical office Ргйсе сотрагйзоп Price comparison Total expenditure on goods and services Total expenditure on goods and services aims to measure the average cost of living in each of the surveyed cities, and the results are astounding. Zurich, the most expensive city in our survey, has a cost of living 185% higher than that of Kiev, our least expensive city. Expenditure in middle-ranking cities such as Shanghai, Berlin, and São Paulo is on average 75% less than that in Zurich, and 60% more than in Kiev. What is the cost of living? The differences in prices between goods and services are significant. Non-tradable items, or items whose quality ­differs greatly with geographic location, such as haircuts, schooling and hotel rooms, have the greatest range in prices among cities. For example, the price of a haircut in Oslo (most expensive) is twenty times higher than in Jakarta (least expensive). Among tradable goods, such as rice, an iPhone, or a women’s dress suit, the price difference is much less – rice is only seven times more expensive in New York City than in São Paulo, where prices are the highest and lowest, respectively. Methodology Total expenditure calculations are based on the cost of a basket of 122 goods and services, and weighted according to the monthly spending habits of a three-person European family. The weighted price levels are then indexed to our reference city, New York City. Prices for goods and services were converted to USD by exchange rates found on pages 14 – 15. 1 Monthly expenditure of an average European family * New York City = Index 100 18 Prices and earnings 2015 Total expenditure on goods and services Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City* Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich USD 1 Index 2,182 1,970 2,766 1,923 2,112 2,052 2,117 1,791 1,781 2,245 1,464 1,591 2,352 1,606 2,792 2,941 2,166 2,375 2,351 2,200 3,546 2,485 2,435 2,166 1,783 1,557 1,273 1,736 1,743 1,856 1,806 2,832 2,540 2,418 2,165 2,024 2,227 1,714 1,829 2,542 2,603 2,548 1,735 1,500 2,189 1,682 1,520 3,342 2,016 3,105 2,426 1,523 1,529 1,936 2,242 1,765 1,984 2,646 2,168 1,304 2,569 2,690 2,249 1,819 2,405 2,776 2,609 2,187 1,702 1,632 3,632 65.3 58.9 82.8 57.5 63.2 61.4 63.3 53.6 53.3 67.2 43.8 47.6 70.4 48.1 83.5 88.0 64.8 71.1 70.3 65.8 106.1 74.3 72.9 64.8 53.3 46.6 38.1 52.0 52.2 55.5 54.0 84.7 76.0 72.3 64.8 60.6 66.6 51.3 54.7 76.1 77.9 76.2 51.9 44.9 65.5 50.3 45.5 100.0 60.3 92.9 72.6 45.6 45.8 57.9 67.1 52.8 59.4 79.2 64.9 39.0 76.9 80.5 67.3 54.4 72.0 83.1 78.1 65.4 50.9 48.8 108.7 mb ai 3,750 ity Ne (In w Yo de x) rk C Mu Zurich Prices in USD 3,000 2,250 Wa rs n do Lon 1,500 aw 750 0 Total expenditure on goods and services Nairobi Tokyo o eir Ho an eJ ng ng is Frankfurt Be Ko Par ijin g d Rio Highest Zurich USD 3,632 Lowest Kiev USD 1,273 Prices and earnings 2015 19 Price comparison Food Food Food prices are especially useful for studies like this one. Although food products vary in quality and type, the products chosen for the survey are similar enough everywhere to be comparable. The worldwide average price for our basket of 39 food items is almost USD 400. People living in Zurich, with the highest cost, have to pay 4.5 times more for the food in their shopping carts than those in Kiev, where costs are the lowest. Where is the best place to shop for food? The cost of single goods varies according to the city. Residents of Zurich have to pay USD 3.50 to buy one kilo (two pounds) of bread. In Bucharest, this amount shrinks to 71 cents. Similarly, a kilo of rice costs USD 3.10 in Tokyo, but only USD 1.40 in Manila. In 55 cities, meat is on average more expensive than fish. Meat lovers should flock to Kiev, where the average price for one kilo of meat is around USD 2.60, and steer clear of Zurich and Geneva, where meat is 10 times the price. Those who eat a lot of fish should go to Shanghai or Rio de Janeiro, where one kilo of fish is around USD 2.20, an eighth of the price you would pay for the same fish in Zurich. Methodology Our basket of food items includes staples such as bread, milk and chicken. They determine the price of our food baskets most because they are frequently consumed. So we give more weight to them in our basket than to other foodstuffs. There is a problem with this logic, though, since it assumes that global preferences will be the same as they are in Europe. A three-person family in Asia, for example, will probably not consume as much dairy and meat as a family in Europe. * New York City = Index 100 20 Prices and earnings 2015 Cities USD  Index Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City* Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich 300 343 464 518 350 533 419 289 302 379 248 289 462 374 586 471 426 461 386 379 623 399 511 410 358 273 166 292 317 299 377 568 516 444 413 315 378 333 249 583 405 532 336 253 390 318 233 632 303 536 425 251 253 330 393 308 303 688 518 214 437 541 460 270 414 582 397 443 269 253 738 47.5 54.3 73.4 82.0 55.4 84.3 66.3 45.7 47.9 60.0 39.3 45.8 73.1 59.2 92.8 74.6 67.5 72.9 61.2 60.0 98.6 63.2 80.9 65.0 56.6 43.3 26.3 46.3 50.2 47.4 59.8 89.9 81.6 70.3 65.3 49.8 59.8 52.7 39.4 92.3 64.2 84.2 53.3 40.1 61.7 50.3 36.9 100.0 48.0 84.8 67.3 39.7 40.0 52.3 62.3 48.7 48.0 108.9 82.1 33.9 69.1 85.7 72.9 42.8 65.5 92.2 62.9 70.1 42.6 40.1 116.8 How many baskets of food can you buy around the world for the price of one in New York City? Tokyo i ba Zu ric m Mu h Frankfurt Nai don rob i Lon Warsaw New York City USD 632 Pa g ijin ris Be Rio Jane de iro g Hon g Kon Highest price per basket Zurich USD 738 Lowest price per basket Kiev USD 166 Prices and earnings 2015 21 Price comparison Women’s and men’s clothing Women’s and men’s clothing Cities The business attire worn by men and women – usually a suit and dress shoes – is the same almost everywhere. But prices for these items vary widely across the globe. In Manila, a new wardrobe costs USD 230 on average, whereas in Chicago and Milan, both genders would have to spend over USD 1,100 for their new attire. International travelers can also get good deals in cities such as Jakarta, Kuala Lumpur, and Mumbai. Where should I go to buy my new wardrobe? Clothing prices vary significantly between genders. On average, men’s clothes cost 30% more than women’s. Men pay the most in Geneva (more than twice the global average), and the least in Rio de Janeiro (about one-third the global average). For women, Chicago is the most expensive place to shop, at almost three times the average. Auckland is the only city in our sample where the price of our clothing package is cheaper for men than women. In 64 of the surveyed cities, men’s business suits were our most expensive item, with an average cost of USD 290. Only in six cities was a woman’s individual clothing item more expensive than a man’s. Methodology The price information gathered is based on purchases of good-quality clothing in large department stores, not in specialized shops or designer boutiques. The wardrobe for women includes a two-piece suit, a blazer, a dress, pantyhose and a pair of outdoor shoes. For men, the items were a business suit, a blazer, a shirt, a pair of blue jeans, socks, and a pair of outdoor shoes. * New York City = Index 100 22 Prices and earnings 2015 Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City* Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Women’s clothing  (USD) Men’s clothing  (USD) Index 660 590 650 220 570 400 440 280 220 440 280 290 510 250 1,270 650 410 890 240 500 1,010 550 350 460 170 220 300 150 250 280 360 520 650 640 380 480 280 160 340 960 1160 500 400 260 720 220 220 1,040 590 350 480 270 290 160 410 280 350 900 310 360 550 580 720 510 550 790 450 560 390 500 680 950 750 580 350 840 630 620 440 300 710 410 370 760 520 1,300 790 720 1,250 430 690 1,680 1,100 480 850 300 390 370 260 300 650 520 680 1,090 740 510 850 620 260 540 1030 1220 1100 630 430 940 450 450 1,060 840 660 830 350 400 240 840 360 510 1,070 500 610 1,280 580 860 820 720 1,140 990 720 720 670 1,110 76.7 63.8 58.6 27.1 67.1 49.0 50.5 34.3 24.8 54.8 32.9 31.4 60.5 36.7 122.4 68.6 53.8 101.9 31.9 56.7 128.1 78.6 39.5 62.4 22.4 29.0 31.9 19.5 26.2 44.3 41.9 57.1 82.9 65.7 42.4 63.3 42.9 20.0 41.9 94.8 113.3 76.2 49.0 32.9 79.0 31.9 31.9 100.0 68.1 48.1 62.4 29.5 32.9 19.0 59.5 30.5 41.0 93.8 38.6 46.2 87.1 55.2 75.2 63.3 60.5 91.9 68.6 61.0 52.9 55.7 85.2 Household appliances Household appliances Cities Equipping your kitchen is a costly investment. In Tokyo, you may pay as much as USD 1,580 to buy a brand-new set of household items. Kuala Lumpur offers a good deal, by comparison, where buying our package of household appliances costs almost a fourth of that in our most expensive city. How much to stock my kitchen? The worldwide average for household appliances is USD 785, around the cost of buying the goods in Lyon. For the price of a refrigerator in Zurich, you could buy four in Doha. Frying pans have a slightly different distribution of prices, with the cost of one in Jakarta being a 10th of that in Helsinki. Frankfurt, Hong Kong, and Sydney follow as cities where consumers pay the highest prices for this common kitchen appliance. For hairdryers, you may want to air-dry in Manila and Geneva, with prices double the global average. In Lyon, however, the price of a hairdryer is only USD 20. Methodology Our basket of good-quality home appliances includes a refrigerator, a vacuum cleaner, a frying pan and a hair­ dryer. The items were weighted by European monthly consumption. * New York City = Index 100 Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City* Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich USD  Index 830 670 1,150 530 820 490 880 680 900 980 420 800 1,060 480 1,120 950 430 550 540 780 1,290 810 1,170 530 440 480 750 410 570 780 640 1,060 900 720 730 830 680 820 580 580 710 1,120 920 480 850 710 560 890 1,150 1,100 820 550 590 580 1,070 560 510 800 430 470 1,120 1,120 620 540 1,090 1,580 1,370 740 740 640 1,540 93.3 75.3 129.2 59.6 92.1 55.1 98.9 76.4 101.1 110.1 47.2 89.9 119.1 53.9 125.8 106.7 48.3 61.8 60.7 87.6 144.9 91.0 131.5 59.6 49.4 53.9 84.3 46.1 64.0 87.6 71.9 119.1 101.1 80.9 82.0 93.3 76.4 92.1 65.2 65.2 79.8 125.8 103.4 53.9 95.5 79.8 62.9 100.0 129.2 123.6 92.1 61.8 66.3 65.2 120.2 62.9 57.3 89.9 48.3 52.8 125.8 125.8 69.7 60.7 122.5 177.5 153.9 83.1 83.1 71.9 173.0 Prices and earnings 2015 23 Price comparison Home electronics Home electronics Home electronics are essential to everyday life in Europe, but may be considered luxury items in other parts of the world. On average, you would have to spend around USD 3,530 for our basket of electronics, a little more than the price of a basket in Los Angeles. Who pays the most for an iPhone? The difference in price for electronics across the cities is quite small compared to other goods; as many of them are homogenous and tradable, their prices are fairly uniform. The most expensive city has prices only 40% higher than the cheapest one. The iPhone is USD 500 more expensive in São Paulo and Rio de Janeiro than in Chicago, due to high import prices. The price of a television varies more; you can buy 4.5 TVs in Kiev for the cost of one in Hong Kong. In Santiago de Chile, it is more affordable to spend your money on a notebook instead of a desktop computer – you can save around 60%. In Shanghai, however, you can save almost 50% by buying a desktop computer instead of the pricier notebook. Methodology Home electronics in particular follow rapid technological advances. To update our basket of electronics from 2012, we changed the specifications of some products and replaced the iPhone 4S with an iPhone 6. The prices shown include a color television (40-inch color LED), a digital camera, a personal desktop computer, a notebook computer and an unlocked (no contract) iPhone 6 (16GB). * New York City = Index 100 24 Prices and earnings 2015 Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City* Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich USD Index 4,100 3,590 4,130 3,110 3,390 2,960 3,420 2,680 3,550 3,480 3,410 3,110 4,330 2,790 3,350 3,630 3,980 2,900 3,310 3,420 3,750 3,420 3,480 3,550 2,940 2,830 3,560 3,440 4,270 2,970 3,390 3,150 3,500 4,250 3,330 3,820 3,620 4,100 3,640 4,190 3,240 3,600 3,340 3,860 3,190 3,470 4,100 3,480 3,180 3,750 3,420 3,120 2,880 4,170 3,100 4,180 3,700 4,480 2,880 3,050 3,330 3,910 3,810 3,970 3,760 4,260 3,120 3,250 3,470 3,810 3,610 117.8 103.2 118.7 89.4 97.4 85.1 98.3 77.0 102.0 100.0 98.0 89.4 124.4 80.2 96.3 104.3 114.4 83.3 95.1 98.3 107.8 98.3 100.0 102.0 84.5 81.3 102.3 98.9 122.7 85.3 97.4 90.5 100.6 122.1 95.7 109.8 104.0 117.8 104.6 120.4 93.1 103.4 96.0 110.9 91.7 99.7 117.8 100.0 91.4 107.8 98.3 89.7 82.8 119.8 89.1 120.1 106.3 128.7 82.8 87.6 95.7 112.4 109.5 114.1 108.0 122.4 89.7 93.4 99.7 109.5 103.7 Housing Housing Cities Housing is a basic need, and its prices depend greatly on regional preferences and demographic trends. For some cities, there is a large difference between the price to rent an apartment built to Western standards versus local ones. In Bogotá, for example, a furnished two-room apartment is 122% more expensive per month than its typical local variant. On average, local rents were 20% less per month than those for Western-style apartments. Where can I pay less rent? A furnished two-room apartment in Hong Kong costs around USD 4,410 to rent per month – four times the monthly rent in Johannesburg. That is still not the highest though: rent in New York City costs USD 200 more per month for a similar apartment. For this price, you could rent an apartment for 17 months in Sofia. The general picture is the same for unfurnished three-room apartments. In London, these cost USD 3,350 per month. For that price, you could rent two apartments, one in Amsterdam and one in Beijing. Methodology To estimate the worldwide costs of housing, we considered the prices for three different types of apartments. For two of these types, we standardized requirements to Western preferences, with a furnished two-room apartment and an unfurnished three-room apartment. We only looked at newly built apartments which with a bathroom and a kitchen. Prices included utilities (energy and water taxes), but not the use of a garage. To capture local standards, our survey asked for the price of an apartment of typical size, location, and amenities for the respective city. All three housing options were weighted equally. 1 The figures given are values for average rent prices (monthly gross rents) for local households. Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Furnished 2-room apartment Unfurnished 3-room apartment Normal local rent1 1,140 740 1,060 820 780 1,150 850 840 670 1,300 420 620 810 640 2,520 1,420 2,230 2,320 1,650 990 2,810 1,460 4,410 890 530 1,080 400 570 760 710 760 2,840 1,670 1,940 640 940 1,120 890 990 1,840 1,090 640 1,080 770 1,210 700 570 4,620 690 1,940 1,670 510 680 1,380 1,220 990 930 970 1,120 270 1,240 2,050 2,030 670 1,520 1,370 1,110 1,010 590 590 2,500 1,620 850 1,390 1,040 820 1,630 1,140 1,210 720 1,490 610 760 1,040 780 2,960 2,020 2,500 3,240 2,360 1,360 2,700 1,600 4,220 1,080 750 1,500 540 630 890 1,020 1,080 3,350 2,210 2,430 820 1,340 1,470 900 1,410 2,180 1,490 670 1,540 970 1,580 790 720 4,320 950 2,150 2,090 630 910 1,540 1,600 1,090 1,330 1,270 1,330 350 1,350 2,940 2,740 920 1,790 1,920 1,250 1,120 820 840 2,390 1,220 770 1,250 500 740 1,390 690 380 580 1,340 370 640 710 500 2,210 1,650 2,050 1,380 1,760 1,220 1,610 1,440 2,590 970 260 690 390 560 800 760 540 2,360 1,990 2,130 670 900 890 190 770 1,970 1,340 590 1,020 550 1,370 480 640 3,890 690 1,940 1,610 550 360 590 1,280 710 910 1,140 1,090 310 880 1,780 1,840 690 1,160 1,730 1,120 800 550 630 1,770 Prices and earnings 2015 25 Price comparison Public transport Public transport Cities Public transport is a big expense for international travelers, since locals usually pay reduced tariffs. Getting around can be pricy – if you are planning a trip to Stockholm or London, where fares are 2.5 times above the worldwide average. Are taxis expensive everywhere? Taking a cab in Oslo is expensive. A five-kilometer (threemile) trip costs USD 32. For the same amount, you could travel more than 66 km (41 miles) in Cairo. Travelling by bus, tram or metro costs on average USD 1.60 worldwide per trip. In Copenhagen the cost is three times higher. In Buenos Aires though, you can travel 10 km (six miles) for less than one-third that amount. For the cost of a ticket in Copenhagen, you could travel the equivalent of 285 km (180 miles) in Kiev, almost the full distance between Luxembourg and Paris. Sixty-one of our cities had railway infrastructure, where a 200 km journey would cost on average USD 27. Zurich, London, and Munich stand out as the most expensive places to travel by train – with prices being at least two times the global average. For the price of a 200 km (125 mile) train ride in Geneva, you could travel an astounding 15,400 km (9,570 miles) in Manila, or the ­distance between Montreal and Auckland. Methodology Prices of public transport are based on the price of a ­single ticket on a bus, tram, or subway, for a journey of approximately 10 km or at least 10 stops. Prices for a taxi include a five-kilometer ride during the day within city limits, including a service tip. Prices for a train ticket represent a 2nd class single ticket for a journey of 200 km. n.a. = not available 26 Prices and earnings 2015 Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Bus, Tram or Metro (USD) Taxi  (USD) Train  (USD) 2.71 1.37 3.16 0.74 2.32 0.48 2.89 0.72 0.90 2.23 0.46 1.26 0.51 0.22 1.92 4.63 0.92 1.09 3.15 2.97 3.12 2.88 1.28 0.74 0.28 0.79 0.16 0.37 0.74 1.82 1.53 4.04 1.50 2.16 1.95 1.98 0.80 0.45 0.33 2.25 1.62 2.63 0.88 0.74 2.92 0.64 0.37 2.75 1.62 3.80 1.95 1.18 1.30 1.19 1.62 1.08 1.12 1.06 0.38 0.55 4.17 2.58 0.54 1.73 1.75 1.47 2.43 2.34 0.90 0.91 3.75 16.22 5.01 19.72 1.85 10.25 4.42 14.78 1.71 6.31 12.72 3.31 7.28 4.75 2.40 12.75 15.45 3.66 6.26 11.35 14.97 20.58 15.24 3.65 5.66 2.66 6.34 1.59 2.79 6.42 8.11 5.51 10.09 15.65 22.34 12.04 11.35 7.96 3.00 3.66 14.43 17.30 17.57 7.88 1.81 14.02 7.14 1.54 11.67 8.38 32.10 12.43 6.00 6.74 5.07 14.24 7.08 6.48 4.45 3.13 3.04 18.56 11.52 4.63 6.54 10.98 7.31 15.88 14.42 4.52 5.64 27.59 27.95 15.14 40.59 3.26 25.37 15.59 55.14 n.a. 8.96 22.81 14.26 15.15 n.a. 4.59 37.00 49.03 n.a. n.a. 30.50 59.47 77.55 33.91 26.23 14.08 8.49 16.67 3.28 8.68 n.a. 23.25 14.03 74.02 36.67 31.56 32.54 29.08 n.a. 1.01 n.a. 33.45 28.58 52.08 24.60 1.75 59.83 10.09 10.08 52.50 n.a. 61.77 43.84 8.44 7.78 n.a. 27.03 9.11 n.a. 23.09 12.01 7.55 41.79 6.80 11.32 11.79 18.75 51.77 38.46 43.36 10.46 13.70 73.39 Restaurants and hotels The cost of dinner for two varies. The price in Tokyo is enough for six dinners in Mumbai. Buying a three-course evening meal in a good restaurant in Zurich and Taipei can cost as much as USD 150. This is more than 80% higher than the worldwide average of USD 80. In Jakarta and Johannesburg, with prices around USD 40 per meal, you would spend USD 110 less than in the most expensive cities. Shall we upgrade to the five-star hotel? Checking in to an international five-star hotel in New York City can be quite expensive, with a price tag of USD 590 per night. For the price of an average night in New York City, you can afford over five nights in Bucharest. The same level of luxury in Barcelona costs you only USD 250, closer to the global average of USD 300. Even if you decide to settle for something more affordable, prices for a mid-range hotel can vary widely. In Riga you would pay on average USD 70, whereas in Miami this would cost you USD 240. For the cost of the room in Miami, you could actually book a first-class hotel in Riga. Methodology The price of an evening meal includes a three-course menu in a good restaurant, with an entrée, main course, and dessert, excluding beverages but including a service tip. The price for a hotel room factors in a one-night stay in a double room with an ensuite bathrom, including ­breakfast for two people, in a first-class international hotel, and in a good mid-range hotel. Restaurant and hotel Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Restaurant (USD) Hotel***** (USD) Hotel*** (USD) 90 80 110 50 110 50 70 90 80 120 40 60 60 60 100 110 100 90 110 80 140 80 90 90 40 40 50 110 80 60 60 60 100 120 70 110 110 60 70 110 110 90 110 40 90 40 40 100 50 150 60 40 70 50 100 70 80 90 70 50 100 70 150 60 80 220 60 90 40 60 150 250 290 210 180 250 200 240 280 190 190 110 220 440 260 390 300 400 430 320 290 410 380 250 200 340 290 380 240 290 250 240 400 290 240 240 350 390 230 280 420 300 210 350 170 380 230 220 590 250 280 410 200 230 290 380 250 240 400 470 160 230 470 390 300 430 500 390 240 200 190 440 170 100 140 110 160 100 120 150 90 140 70 70 150 80 180 190 170 130 160 120 200 120 170 130 210 150 90 70 110 110 90 180 150 150 130 130 230 100 100 240 200 120 140 100 110 120 110 380 90 170 130 90 70 110 160 120 100 140 140 60 150 170 120 100 190 280 200 90 80 90 320 Prices and earnings 2015 27 Price comparison Services Services Cities1 Services are a part of our daily lives – we read the news­ paper, pick up our dry cleaning, get our hair cut, and meet someone for coffee, possibly all in one morning. For this section, we collected prices for a basket of 27 different services. Worldwide, this basket costs an average of USD 490, but this varies widely across cities. Where should I get my hair cut? The quality of services, unlike that of food, is hard to capture uniformly. Services are not exportable or tradable goods. There is a strong correlation between local wages and the prices for services, which results in extreme price differences for our basket. Zurich and Geneva, which lead our wage-level rankings, also come out on top for the prices of services. In these two cities our basket costs USD 990 and USD 955, respectively. In Kiev, Mumbai, and New Delhi on the other hand, the same basket can be bought for less than half of the global average price. Haircuts, and especially the price difference for them between men and women, are an interesting example. In Jakarta and Hong Kong, women pay on average almost the same as men, whereas in Dublin and Cairo, the price for women is almost three times higher than for men. This imbalance is seen across the globe, with women’s haircuts costing on average 40% more than men’s. For the price of one women’s haircut in Oslo, men could afford to get their hair cut around 18 times in Nairobi. Methodology Our basket covers a variety of services, such as a haircut, an hour of household help, dry cleaning, TV and internet fees, a language course and a ticket to a sports event. The basket is weighted according to the monthly consumption of a European family. * New York City = Index 100 28 Prices and earnings 2015 Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City* Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich USD Index Haircut women Haircut men 555 461 695 323 530 351 447 425 371 578 305 311 536 340 645 760 545 538 615 514 954 523 410 464 311 390 208 378 414 394 346 703 562 586 546 569 583 361 455 533 566 560 395 194 529 355 215 742 433 817 605 302 309 455 512 444 515 410 447 316 557 667 517 330 548 663 584 446 306 309 996 74.7 62.1 93.7 43.6 71.4 47.3 60.3 57.2 49.9 77.9 41.1 41.8 72.3 45.9 86.9 102.4 73.4 72.6 82.8 69.3 128.6 70.5 55.3 62.5 42.0 52.5 28.0 50.9 55.8 53.1 46.6 94.8 75.7 79.0 73.6 76.6 78.5 48.6 61.3 71.9 76.2 75.4 53.2 26.2 71.3 47.8 29.0 100.0 58.3 110.2 81.5 40.7 41.7 61.4 69.0 59.8 69.4 55.3 60.3 42.6 75.0 89.9 69.7 44.5 73.8 89.4 78.7 60.2 41.3 41.6 134.3 49.37 20.36 63.98 12.81 36.04 9.27 31.63 14.03 23.43 43.97 13.05 22.85 23.37 21.84 54.00 67.99 32.05 43.11 43.25 43.97 83.97 43.97 30.96 21.37 4.63 11.81 9.90 15.16 14.97 27.03 33.88 49.34 57.00 67.76 42.53 27.03 23.87 6.18 15.34 26.33 38.11 35.28 41.00 13.50 51.18 10.35 11.91 73.33 38.38 95.04 48.26 25.58 24.87 40.89 48.65 21.97 22.96 15.64 16.93 15.89 54.80 38.64 29.04 28.83 55.92 37.64 26.31 48.65 27.03 23.73 86.71 36.76 14.78 36.42 9.53 19.79 5.24 16.49 8.28 12.79 25.95 8.02 12.63 20.92 6.12 32.33 52.55 13.28 16.79 13.24 29.19 44.07 36.04 30.96 12.57 4.50 8.20 7.24 10.84 8.55 10.63 17.30 24.92 34.33 27.93 22.71 19.50 13.26 5.40 11.50 15.67 24.06 23.14 28.70 5.96 32.80 5.35 5.29 36.67 16.76 77.72 26.31 12.89 13.70 14.76 17.30 12.48 14.21 9.43 10.10 11.33 48.82 21.64 26.89 14.78 21.61 33.18 14.84 18.74 16.22 15.22 50.79 USD 100 USD 75 USD 50 USD 25 Women’s haircut Zurich 86.71 London 37.64 Hong Kong 33.18 30.95 43.97 73.33 36.67 Paris 29.19 48.26 Rio de Janeiro 40.89 Warsaw 23.73 New York City Frankfurt 24.92 30.95 Prices in USD Men’s haircut Tokyo 50.79 49.34 USD 0 14.76 Beijing 9.27 Nairobi 15.22 10.35 26.31 5.24 Mumbai 5.35 Women’s haircut 13.50 5.96 Men’s haircut Highest Lowest Highest Lowest Oslo Jakarta Oslo Jakarta USD 95.04 USD 4.63 USD 77.72 USD 4.50 Prices and earnings 2015 29 Price comparison City breaks City breaks Cities Avid international travelers may be interested in the cost of a trip to one of our cities. For example, rental cars vary greatly in price. In Rio de Janeiro, a rental car can cost you around USD 25, a tenth of the cost of a rental in Oslo. Over half of our cities offer rental cars for under USD 110 per day, less than half of the price of one in Paris, our second-most expensive city for rental cars. P­ ostage had one of the greatest price variances; the price of sending a letter was 58 times more expensive in Bogotá than in Kiev. Fifty-nine cities have postage prices under USD 0.95. Riga or Zurich for a night away? An average city break costs USD 615. Zurich and Geneva are the most expensive cities to visit, costing 70% and 65% more, respectively, than the average. Other pricy destinations include Tokyo, New York City and Oslo, where the cost of our package is well above USD 950. For that amount, an entire three-night round-trip from Bucharest (USD 260) to Sofia (USD 300) to Vilnius (USD 380) could be organized. Methodology The cost of a city break was for two people, with an overnight stay in a first-class hotel, two dinners at a ­restaurant including a bottle of wine, a taxi ride, two tickets for public transportation, a rental car (100 km), a paperback book, a phone call and postage for a ­letter. The prices listed do not include travel to and from the destination. * New York City = Index 100 30 Prices and earnings 2015 Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City* Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich USD  Index 570 530 580 320 600 350 620 590 450 580 260 430 700 480 700 780 740 790 660 700 1,020 800 640 440 690 450 550 550 560 460 490 750 620 720 650 650 720 450 540 780 670 570 710 300 830 380 340 1,030 550 980 890 500 460 470 710 570 500 670 670 300 610 690 820 540 650 1,000 710 630 380 490 1,050 55.3 51.5 56.3 31.1 58.3 34.0 60.2 57.3 43.7 56.3 25.2 41.7 68.0 46.6 68.0 75.7 71.8 76.7 64.1 68.0 99.0 77.7 62.1 42.7 67.0 43.7 53.4 53.4 54.4 44.7 47.6 72.8 60.2 69.9 63.1 63.1 69.9 43.7 52.4 75.7 65.0 55.3 68.9 29.1 80.6 36.9 33.0 100.0 53.4 95.1 86.4 48.5 44.7 45.6 68.9 55.3 48.5 65.0 65.0 29.1 59.2 67.0 79.6 52.4 63.1 97.1 68.9 61.2 36.9 47.6 101.9 \/\/а9е сотрагйзоп Wage comparison International wage comparison Wages differ greatly across geographic regions and professions, making them vital for determining purchasing power. Zurich and Geneva have the highest gross wages by far, over USD 10/hour greater than Luxembourg (third-highest gross salary), and over 20 times greater than Jakarta’s gross wages. More often than not, how much you get paid for work is not how much you take home, although for workers in Dubai, Doha and Buenos Aires, with 0% tax rates and low employee social security contribution rates, this is the case. Workers in Copenhagen, on the other hand, surrender almost 45% of their wage to taxes. Net wages in Zurich and Geneva are the highest, even with all deductions, and are, on average, almost 23 times higher than those in Kiev, with the lowest. How does my salary compare to others? New York City had the greatest variance across gross wages, signaling a different salary level for different levels of education; an educated department manager makes on average almost USD 120,000 more than a female factory worker. Kiev has the most uniform gross wages, with an average difference between these two professions of around USD 6,000. The employment sector also makes a difference regarding compensation. Average industrial sector employees made 8% more than average service sector workers, when considering unweighted gross salaries (see pages 39 – 41) across all cities. In some places this difference can be significant, such as in São Paulo, with a difference of almost 75%. For others, it was minimal, such as in Paris, with almost no sector difference. 32 Prices and earnings 2015 Methodology Our wage comparison covers 15 different occupations in administrative, business, communication, construction, educational, finance, healthcare, hospitality, manufacturing, retail, and transportation sectors. Worker profiles vary in age, family status, work experience and education. Job descriptions can be found on page 38. All professions are weighted to reflect the European workforce, where industrial sector workers comprise 27% of the workforce, and service sector employees nearly 73%. To ensure that wage information for local workers is presented accurately, incomes from cross-border commuters were excluded. We compared job profiles for full-time (100%) workers to ensure comparability, and scaled up any information on part-time workers on the assumption that wage was a linear function of percentage of work. Since the sample size of our wage data is smaller than that used by local governments for their calculattions, the results are not statistically comparable. Gross wages may include possible supplementary benefits, such as bonuses, vacation pay, meal or housing allowances, or family assistance. Net wages take into account taxes and social security contributions. Hourly wages are calculated by taking into account annual working hours, found on page 36. Note Professions were weighted according to Eurostat statistics for the working population composition of EU countries. Sto ck lm So Sha dn ho ey Auckla nd Bang kok Barc elon a Bei jing Be rlin Bo go Br tá at isl av a 30 ip Ta Sy Athens Zurich 40 ll Ta Warsaw s Vilniu na Vien o ont Tor yo Tok v vi lA Te inn i e Amsterdam Gross hourly pay in USD Net hourly pay in USD st re a ch t Bu apes d ires Bu sA o en Bu ro Cai ago Chic n nhage Cope Doha B 20 fia ngh ai Seo ul aulo Sao P Santiag o de Ch ile Rome ls se s ru Dubai Gross and net hourly pay Rio de Janeiro Riga Dublin Frankfurt Genev Prague Paris Oslo a Hels inki Hon Nic ba Mo sco i Mo w ntr eal Mil an Mia mi un i ch ev Manama Manila Mexic Lyon Madrid o City um M M Jak Jo Ki nb Gross hourly pay ul art ha es bu rg Net hourly pay Highest Lowest Highest Lowest Zurich Kiev Zurich Kiev USD 41.29 ong a nn r pu m Lu ala Ku a Lim n bo Lis na blja Lju don Lon es ngel Los A bourg Luxem y Cit k r Yo lhi w De Ne bi w iro Ne a N gK Ista a osi USD 1.93 USD 38.40 USD 1.65 Prices and earnings 2015 33 Wage comparison Taxes and social security contributions Most countries rely on taxes, social security payments and other deductions to finance their national budgets and social security systems. Countries such as Bahrain, the UAE and Qatar finance themselves by selling local raw materials, and do not have an income tax system. Argentina, Peru and Colombia only impose tax on high earners and foreign citizens. Hence, six of our cities have no recorded income tax. Who pays the most tax? Income taxes hurt most in Copenhagen, where the average tax for our professions was around 45%. Average tax worldwide was almost 13%, but varies among cities, as income tax rates are calculated by each country and/or city to ensure its own finances. Some countries have very high income tax and social security contribution rates, but provide a full array of social services to their residents. Stockholm has an average tax rate of nearly 28%, but residents have largely free access to education and childcare. Social security contributions average 10% of gross wages for the employee and 19% for the employer. Workers in Moscow, Hong Kong and Copenhagen make no contributions to social security. In France, however, employers contribute over 49%, more than twice employees’ contribution. 27% of all governments shift the burden of social security to the employee. Workers in Auckland, for example, carry full responsibility for social security. 34 Prices and earnings 2015 Methodology We collected tax and social security information using PwC’s “Worldwide Tax Summaries,” and corroborated our results with survey participants and other sources. Taxes were averaged for each profession, weighted and then calculated as a percentage. Social security burden information for employees and employers was gathered from PwC and KPMG sources. Our net wages (see pages 32 – 33) are calculated by deducting social security contributions from gross wages, and then subtracting taxes. Hourly wages in individual cities were calculated by dividing average annual gross or net wages by the average number of hours worked per year. Public sector spending and social security ­systems in individual countries (and in individual cities) vary greatly, so the percentage of deductions ranges widely. Note Capital gains, VAT, property and indirect income deductions were excluded from tax and social security contribution calculations. Cities such as Zurich, Geneva and Hong Kong have basic private medical insurance that is obligatory, regardless of income level. It is not a part of the social security system and the price of it is not deducted from salaries. So social security contributions only reflect public social contributions, not necessarily all social contributions made by employees. This also limits comparability of these cities with others. Income tax in % Social security contribution (employee) in % Social security contribution (employer) in % Amsterdam Bogotá Chicago Helsinki Lima Madrid Moscow Oslo Sao Paulo Tallinn 3.6% 33.8% 20.0% 12.0% 7.2% 12.3% 15.0% 14.7% 13.1% 6.4% 7.4% 16.1% Taipei Vilnius Vienna Toronto Tokyo Tel Aviv 18.0% 21.6% 12.3% 0.6% 21.8% 6.1% 18.7% 2.9% 4.9% 2.0% 9.0% 19.5% 7.0% 31.4% 27.7% 12.9% 18.1% 8.7% 10.5% 35.0% 8.3% 8.3% 9.2% 5.7% 11.0% 29.0% 3.5% Santiago de Chile Sydney Stockholm Sofia Shanghai Seoul 7.8% 11.5% 6.2% 10.4% 30.0% 22.1% 11.0% 29.0% 2.5% 10.5% 23.5% 18.8% 11.0% 34.0% 12.5% 21.4% 49.5% 7.9% 8.2% 14.4% 20.9% Nicosia Rome Rio de Janeiro Riga Prague Paris 4.2% 5.2% 12.8% 8.5% 7.6% 13.8% 12.0% 12.5% 4.3% 6.0% 6.0% 15.0% 20.4% 19.3% 13.1% 12.0% 12.5% 5.1% 0.0% 34.0% 13.0% Montreal New York City New Delhi Nairobi Munich Mumbai 21.4% 49.5% 8.1% 10.4% 30.0% 22.1% 8.5% 7.6% 13.4% 2.7% 31.6% 8.3% 3.6% 7.3% 16.1% 7.0% 12.0% 0.0% 6.35% 29.90% 21.86% Lyon Milan Miami Mexico City Manila Manama 11.0% 12.0% 2.2% 12.4% 15.3% 21.3% 8.5% 7.6% 13.1% 12.0% 13.8% 17.6% 22.1% 16.1% 16.1% 11.0% 23.7% 13.6% 13.0% 9.0% 0.0% Kuala Lumpur Luxembourg Los Angeles London Ljubljana Lisbon 7.0% 5.9% 10.4% 3.6% 49.7% 14.4% 1.0% 1.0% 19.3% 2.0% 5.7% 5.3% 15.0% 27.0% 15.6% 0.0% 0.0% 10.6% 8.4% 23.2% 20.2% Geneva Kiev Johannesburg Jakarta Istanbul Hong Kong 12.1% 24.7% 7.5% 20.4% 19.3% 13.1% 4.0% 10.7% 19.5% 5.0% 12.5% 0.0% 5.0% 10.0% 0.0% 0.0% 0.0% 44.7% 8.5% 7.6% 14.7% Cairo Frankfurt Dublin Dubai Doha Copenhagen 20.4% 19.3% 13.1% 17.0% 27.0% 0.0% 18.5% 28.5% 13.0% 16.5% 23.4% 13.3% 13.0% 35.0% 27.7% 13.4% 35.2% 16.4% 10.0% 20.5% 0.0% Buenos Aires Budapest Bucharest Brussels Bratislava Berlin 10.5% 35.0% 6.8% 6.3% 29.9% 21.9% 4.0% 5.0% 2.8% 1.4% 0.0% 15.5% 15.5% 24.5% 18.5% 28.1% 18.0% 26.7% Beijing Barcelona Bangkok Auckland Athens Warsaw 13.7% 20.7% 16.8% 9.0% 30.9% 15.0% Zurich 7.0% 5.9% 6.9% Prices and earnings 2015 35 Wage comparison Working hours and vacation days Annual working hours have a great impact on purchasing power and quality of life – a high hourly income and a low number of working hours indicates a higher quality of life than the reverse. All workaholics should move to Hong Kong, where working hours average over 50 per week, with only 17 days of holiday annually. Those who like time off should consider finding a job in Paris, where people work only around 35 hours per week (in line with new ­government regulations) and have 29 days of paid vacation. They are on the job annually 1,000-plus fewer hours than their counterparts in Hong Kong. Do I spend too much time at work? On average, workers worldwide spend over 40 hours per week at their workplace, and receive over 4.5 weeks of paid vacation. That said, employees in Shanghai must live with only seven days off, almost a fifth of the vacation days of those in Manama. But legal holidays help make workers’ lives manageable. Bangkok averages only nine days of paid vacation but 16 days of legal holidays, giving a total holiday time of 25 days, or around five weeks. São Paulo has the highest combined amount of time off, with an average of 50 days, or around 10 weeks. Lisbon has the lowest number of legal holidays, with only five days, which is one work week in the city. Methodology Annual vacations are those considered as paid vacation days (legal holidays not included). They were calculated through survey responses, and averaged over all professions. Annual working hours were calculated through the number of hours worked per day, the number of days worked per week, with the vacation and legal ­holiday time deducted. Working hour information was not weighted to the profession’s representation in the European workforce. 36 Prices and earnings 2015 Working hours and vacation days Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Working hours per year Paid vacation days  per year 1,726 1,800 1,992 2,191 1,731 1,963 1,769 2,096 1,845 1,717 1,807 1,910 1,899 2,082 2,030 1,697 2,082 2,186 1,770 1,757 1,859 1,659 2,606 2,043 2,102 1,847 1,817 1,935 1,957 1,748 1,853 1,740 1,928 1,703 1,631 1,731 2,076 1,951 2,261 1,854 1,691 1,783 1,647 2,277 1,721 2,184 2,214 1,847 1,855 1,744 1,604 1,753 1,823 1,745 1,736 2,082 1,818 1,934 2,051 1,821 1,770 1,829 2,141 1,738 2,038 2,055 1,985 1,678 1,716 1,757 1,912 27 23 16 9 28 10 29 15 26 18 23 26 16 25 14 25 24 30 31 28 27 29 17 18 12 19 26 15 31 23 25 25 14 32 29 26 34 21 17 19 26 18 31 21 29 22 26 27 22 25 29 28 20 30 32 17 31 15 7 22 25 24 13 30 17 17 19 27 30 26 24 Аррепбйх Appendix Job descriptions Industrial sector Construction worker Unskilled or semi-skilled laborer without technical training, approximate age and status: 25, single Department manager Head of production department with more than 100 employees in a sizable company in the metal processing, machinery, or tool-making industry; full vocational training and considerable professional experience, approximate age and status: 40, married, two children Electrical engineer Employed by an industrial firm in the electrical equipment, electric power, or similar industry; completed studies at a university or institute of higher technical education; at least five years of practical experience, approximate age and status: 35, married, two children Female industrial worker Unskilled or semi-skilled operator in a medium-sized plant in the textile industry, approximate age and status: 25, single Industrial technician Skilled mechanic with vocational training and considerable experience with a large company in the metal-working and tool industry, approximate age and status: 35, married, two children Services sector Automobile mechanic Completed training or apprenticeship, at least five years of experience, approximate age and status: 25, single Bank credit clerk Completed apprenticeship, at least 10 years of experience, approximate age and status: 35, single Bus driver Employed by a municipal transport system, at least 10 years of driving experience, approximate age and status: 35, married, two children 38 Prices and earnings 2015 Call center agent Trained agent at an inbound call/service center in the telecommunications or technology sector, approximate age and status: 25, single Cook (chef de partie) Cook in a kitchen with a fairly large staff in a respected restaurant or hotel, deputy of the head chef or chef de partie, supervises two to three cooks, completed vocational training as cook, about 10 years of experience, approximate age and status: 30, single Female sales assistant Sales in the ladies’ apparel department of a large department store, specialized training in sales, ­several years of experience, approximate age and status: 25, single Hospital nurse Completed apprenticeship or studies, at least 10 years of experience, approximate age and status: 35, married, two children Primary public school teacher Teaching for about 10 years in government-operated schools, approximate age and status: 35, married, two children Product manager Manager in pharmaceutical, chemical or food industry, about five years of experience, tertiary educational degree, middle management, approximate age and status: 35, married Secretary/personal assistant Secretary of a department manager in an industrial firm, at least five years of experience; knowledge of PCs and one foreign language, approximate age and status: 25, single Appendix Gross annual incomes (in USD) in the industrial sector Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Department manager Female industrial worker Construction worker Industrial technician Electrical engineer 51,379 54,176 78,286 29,611 44,698 19,107 76,888 20,494 58,396 70,864 14,466 22,437 18,728 26,570 107,820 72,099 56,039 73,494 59,837 56,305 130,704 47,383 64,505 41,052 10,190 40,648 8,005 44,868 20,438 21,231 33,532 57,910 85,500 115,857 52,306 44,525 58,353 12,870 14,581 116,393 55,332 105,607 13,835 16,200 87,211 14,846 14,705 142,500 64,660 76,080 52,696 17,073 16,770 36,872 63,803 20,375 58,271 32,026 31,759 18,002 80,042 92,460 79,811 45,851 43,208 74,239 63,164 65,262 24,844 33,829 159,705 25,796 10,324 34,809 5,080 16,365 5,358 23,894 3,235 16,978 32,068 4,372 5,459 10,277 1,993 38,965 42,012 8,241 6,533 23,013 26,993 57,094 27,736 29,414 7,086 2,023 9,453 2,384 6,173 6,576 14,938 20,224 33,583 30,667 32,442 23,485 17,335 13,527 2,190 3,019 33,160 21,988 45,452 6,653 2,791 29,281 2,324 2,952 19,055 47,582 42,267 21,304 8,939 7,437 4,479 30,482 7,935 5,450 17,486 5,229 5,131 33,665 48,957 11,048 8,742 21,451 31,578 40,445 26,360 4,947 7,444 47,934 26,135 10,073 37,950 5,055 20,655 4,712 25,466 4,364 22,358 32,137 4,783 5,159 9,921 1,888 42,000 36,684 5,824 5,299 29,955 27,182 58,302 30,643 29,930 9,583 3,011 5,420 3,225 7,066 7,220 11,539 12,815 31,966 38,000 30,279 23,320 21,992 9,549 2,208 2,063 28,887 22,243 39,804 7,144 2,087 23,634 1,958 1,688 29,415 22,872 41,210 24,383 8,205 11,627 7,658 27,179 10,062 6,228 28,161 7,730 5,142 40,208 62,355 20,435 12,755 15,899 41,825 36,992 31,532 10,414 8,695 62,276 42,374 22,581 58,739 11,719 24,440 6,197 38,689 9,245 19,465 42,974 7,074 8,672 12,489 8,609 43,500 45,202 22,251 25,315 46,456 42,705 84,079 43,079 37,671 18,652 3,844 34,799 2,822 8,562 12,586 19,545 24,993 54,121 55,000 61,787 28,865 31,314 35,542 3,303 8,856 72,777 34,771 50,252 10,962 5,045 36,234 2,719 4,396 47,000 30,893 52,411 28,501 12,910 11,442 22,986 36,549 15,656 44,746 26,965 9,741 5,905 42,291 59,493 24,205 17,302 31,482 63,407 55,165 39,182 18,319 19,021 75,691 42,587 17,222 63,351 12,730 41,382 14,621 61,813 15,556 25,125 52,944 12,020 19,781 16,929 11,318 94,299 79,845 54,940 65,328 48,143 63,594 109,649 50,419 55,474 34,609 10,885 58,426 4,208 18,616 18,663 20,684 27,647 61,296 82,333 67,194 52,698 31,631 56,231 10,842 7,521 96,657 52,736 54,224 18,749 11,847 66,500 4,911 8,069 100,055 48,426 54,947 51,937 15,067 14,342 36,006 46,320 33,944 31,750 35,892 18,368 7,464 54,172 70,195 27,852 22,277 45,805 53,536 70,083 57,146 14,655 16,275 123,676 Prices and earnings 2015 39 Appendix Gross annual incomes (in USD) in the services sector Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich 40 Prices and earnings 2015 Bus driver Automobile mechanic Call center agent Cook (chef de partie) Hospital nurse 35,340 17,708 35,659 8,234 29,153 8,090 28,227 6,254 12,779 38,251 11,601 9,023 17,246 2,202 31,714 45,819 9,312 18,237 39,016 32,993 64,590 34,743 27,608 11,611 3,103 10,339 2,944 6,184 6,383 28,100 14,748 37,402 39,783 85,578 27,791 33,170 17,665 3,083 1,813 38,317 29,270 46,218 13,381 3,185 34,427 2,741 4,204 63,800 31,290 48,184 26,959 11,285 10,570 7,680 32,035 11,348 9,001 40,475 7,983 7,110 37,915 45,040 22,668 12,068 29,448 39,106 44,613 36,031 12,761 10,372 77,028 28,328 9,786 39,760 11,033 22,926 6,649 31,189 6,678 11,420 34,800 7,868 7,349 12,991 4,283 55,679 43,295 11,171 14,880 27,920 31,594 66,145 33,623 25,289 11,347 3,103 12,111 5,789 9,132 8,409 16,149 19,511 32,718 40,733 40,228 20,579 23,492 36,232 2,897 3,083 38,025 22,068 37,114 11,945 2,017 32,330 3,094 4,619 47,678 27,049 48,184 22,890 9,400 11,876 7,479 29,843 13,365 7,857 27,839 8,521 7,369 36,681 47,668 16,634 14,058 25,176 38,437 31,987 35,637 12,626 10,818 68,886 27,960 10,527 29,969 5,025 22,759 3,679 19,320 5,078 22,922 32,739 6,965 9,117 10,212 2,884 36,804 42,413 14,284 13,283 25,610 22,846 51,014 24,630 24,512 6,649 2,548 6,791 2,983 8,617 6,998 10,562 20,646 25,986 33,733 32,442 28,474 15,922 12,732 4,330 3,342 28,076 18,438 27,790 8,694 3,239 24,470 3,884 3,249 29,560 26,657 44,380 24,001 9,674 8,736 3,597 19,934 8,058 4,942 18,406 5,519 8,714 37,086 32,646 15,330 10,572 24,230 33,460 23,652 31,429 6,505 7,798 54,967 32,251 19,832 35,909 14,143 34,064 7,294 44,208 8,831 22,385 36,879 11,010 14,567 14,526 10,095 43,879 49,296 16,482 64,784 32,273 39,424 75,875 29,527 51,573 75,239 8,801 51,307 9,576 18,810 9,768 25,773 20,159 41,107 53,567 41,093 29,780 31,339 68,962 3,367 17,109 60,122 42,319 40,532 11,491 12,741 35,540 4,494 6,689 63,725 37,159 49,452 34,625 12,869 8,632 20,260 54,888 14,222 22,257 23,008 13,556 10,914 37,714 39,062 48,840 19,033 38,423 46,008 38,870 29,493 22,038 17,513 81,224 41,006 14,638 50,794 19,854 29,463 9,789 34,269 9,006 8,795 41,870 6,385 7,672 11,655 4,195 67,950 52,402 17,306 27,583 45,084 31,805 79,665 33,415 58,313 13,437 2,200 14,664 1,946 12,806 9,206 15,752 17,142 41,359 75,000 88,822 25,676 26,783 33,770 4,783 12,286 69,484 38,534 45,286 7,787 5,216 33,454 3,865 6,583 91,600 29,881 50,297 34,759 10,378 8,127 19,970 32,983 23,529 18,411 31,290 14,524 4,169 42,963 48,404 20,144 14,274 31,421 47,179 52,919 32,789 8,140 9,781 76,581 Gross annual incomes (in USD) in the services sector Cities Amsterdam Athens Auckland Bangkok Barcelona Beijing Berlin Bogotá Bratislava Brussels Bucharest Budapest Buenos Aires Cairo Chicago Copenhagen Doha Dubai Dublin Frankfurt Geneva Helsinki Hong Kong Istanbul Jakarta Johannesburg Kiev Kuala Lumpur Lima Lisbon Ljubljana London Los Angeles Luxembourg Lyon Madrid Manama Manila Mexico City Miami Milan Montreal Moscow Mumbai Munich Nairobi New Delhi New York City Nicosia Oslo Paris Prague Riga Rio de Janeiro Rome Santiago de Chile Sao Paulo Seoul Shanghai Sofia Stockholm Sydney Taipei Tallinn Tel Aviv Tokyo Toronto Vienna Vilnius Warsaw Zurich Bank credit clerk Product manager Secretary/personal assistant Female sales assistant Primary public school teacher 37,748 20,219 34,468 22,815 32,427 4,583 48,938 10,331 23,935 44,632 8,711 11,472 16,431 10,838 47,040 66,462 40,656 24,171 37,840 48,490 121,684 32,888 61,151 15,823 2,432 12,773 3,923 7,569 13,432 26,494 24,967 29,587 68,633 75,698 49,744 38,541 36,285 5,783 6,240 51,157 44,085 49,752 13,986 4,966 45,253 6,741 5,394 53,695 40,553 50,720 55,260 13,881 11,696 13,962 36,317 17,594 12,613 58,408 16,945 6,889 46,278 41,227 20,074 14,491 30,753 52,281 33,198 42,770 18,771 11,393 107,124 49,641 33,848 62,593 17,951 64,163 28,403 56,631 67,629 34,305 50,943 20,236 21,736 22,410 10,270 109,207 82,992 49,080 89,826 82,186 58,020 119,595 53,785 52,378 24,156 11,580 47,117 6,567 19,182 23,273 16,149 28,990 106,077 94,000 50,826 59,469 44,878 49,759 35,295 30,327 111,037 47,582 75,663 19,505 22,859 62,627 15,756 6,848 119,000 56,181 67,627 54,421 18,472 27,109 33,690 57,008 32,731 51,575 33,131 30,017 12,748 80,878 86,318 56,768 18,816 70,942 55,418 65,723 54,483 19,516 28,966 127,031 31,019 12,135 46,660 11,286 22,163 4,648 28,433 10,970 12,869 36,060 5,778 9,364 14,253 4,326 44,929 50,736 23,624 18,691 28,837 32,586 75,417 32,706 30,446 12,265 5,906 15,581 3,452 9,591 10,154 15,291 19,180 28,606 42,267 38,930 27,724 21,448 19,734 3,474 12,815 38,002 26,253 36,729 11,189 5,447 34,947 6,741 7,167 39,080 27,997 43,957 26,661 10,581 9,735 13,080 16,978 10,015 14,007 17,118 10,457 6,630 35,707 37,001 14,480 12,025 24,736 36,806 33,607 40,791 7,408 10,470 69,684 27,624 14,004 27,426 7,053 18,636 6,197 23,577 4,508 10,652 35,114 7,146 6,337 14,508 3,671 42,088 32,819 17,471 15,243 27,035 25,769 46,683 30,777 26,318 9,515 2,200 6,570 3,009 7,166 6,217 12,479 12,620 26,984 38,067 29,847 23,358 20,855 19,150 2,389 3,707 29,065 21,260 17,533 9,148 4,149 27,406 3,480 3,631 26,500 31,063 38,885 26,538 9,442 5,509 4,218 25,380 8,692 11,299 14,633 7,356 4,666 34,969 39,938 12,350 11,376 21,361 27,312 28,748 26,570 5,688 8,749 54,462 43,487 18,546 47,182 7,425 31,301 8,650 53,938 8,682 12,247 41,293 5,431 9,149 10,191 1,398 69,074 52,860 29,668 30,759 44,835 52,100 88,922 39,787 56,764 12,725 2,501 13,173 1,714 12,218 8,837 26,848 22,755 38,197 54,667 94,229 30,096 33,019 31,829 5,192 6,782 63,870 30,441 48,534 11,378 3,446 45,598 2,300 8,011 80,500 41,748 46,493 32,024 10,427 6,666 9,690 27,756 13,307 14,010 37,180 10,651 4,476 39,205 60,294 24,911 12,371 25,220 62,917 62,363 34,125 9,660 12,887 110,815 Prices and earnings 2015 41 Appendix UBS Chief Investment Office WM’s investment views are prepared 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Box, CH-8098 Zurich, Switzerland Cover photo iStock Chief Economist Dr. Andreas Höfert Feedback/Contact sh-prices-earnings@ubs.com Chief Economist Switzerland Dr. Daniel Kalt Printers galledia ag, Flawil, Switzerland Project managers, Authors/Analysis Caroline Steiblin Frank-Stephan Graef Prices and Earnings also has a microsite www.ubs.com/pricesandearnings Project Team Caroline Steiblin Frank-Stephan Graef Dennis Bartlome Frank Neugebauer Editors Andrew DeBoo Patricia Fletcher Desktop CIO Digital & Print Publishing Prices and Earnings appears in English (USD), German (EUR), and French (EUR). The application Prices & Earnings (for iOS) can be downloaded from iTunes. The Newsstand version can be down­ loaded on any iOS device. This edition was released on 17 September 2015. Translation CLS Communication AG, Zurich Illustration Michael Galliker Rodrigo Jimenez © UBS Switzerland AG 2015 City comparisons at your fingertips Prices and earnings on UBS Newsstand Prices and earnings can also be read on the UBS Newsstand (available on the iTunes App Store in selected countries). UBS Wealth Management ab