Hong Kong, Singapore, and Osaka have just been ranked as the world’s most expensive cities to live in.
However, this may not be the situation after the full effect of the coronavirus pandemic incurs significant damage.
Cities that get an enormous piece of their pay from the travel industry could get less expensive as their economies psychologist and costs are driven down.
This is one of the expectations made by the Economist Intelligence Unit (EIU), which tracks living expenses comprehensively.
Its Worldwide Cost of Living Survey for 2020 was incorporated in November 2019, preceding the coronavirus turned into a pandemic. The following review could look altogether different.
“Cities that rely on tourism should see some downward pressure on prices. So Singapore and Hong Kong might not hold the top spot going forward. We could see a different city on top,” said Simon Baptist, the EIU’s chief economist.
The effect of the coronavirus has shaken the world economy, with the movement and the travel industry businesses among the hardest hit. Hong Kong and Singapore are two of the urban communities that could consider a to be drop-in income as interest for relaxation exercises, cafés, and convenience falls. This more vulnerable interest could drive down costs, making these urban communities less expensive for their occupants.
The EIU report saw Osaka take Paris out of its main three most costly cities as a more grounded yen made Japan’s third-greatest city all the more expensive to live in. The specialists took a gander at in excess of 400 costs across 160 items and administrations. These included vehicles and electronic merchandise, which have seen significant stockpile disturbances in China.
While the vehicle business was gravely affected by China’s industrial facility shutdowns during January and February, creation is recouping to pre-coronavirus levels. This could bring about less expensive autos as producers and sellers have surplus stock.
“Once demand starts to return, we would generally expect vehicle prices to be lower, rather than higher, as carmakers and dealers try to earn back some lost revenues. In some countries or regions where the auto is an important industry, subsidies will further help to lower prices,” Ana Nicholls, industry director at the EIU said.
Shoppers may switch vehicle brands moving to those that have more grounded supply chains and less interruption, she added.
The EIU also expect that the typical cost for basic items in certain cities may ascend as measures to slow the spread of the infection builds organizations overheads.