Cities like Osaka, Singapore, and Hong Kong has been in the list of The top-ranked expensive cities in the world to live in.
But the coronavirus pandemic has taken a full toll on it as it is not the same right now.
Tourism has been badly hit as these cities earn a major portion of their income from it. With tourism getting cheaper the economy has shrunk and the prices are at an all-time low.
The Economic Intelligence Unit (EIU) has come with one of these predictions as the living costs are tracked globally.
The worldwide survey for the cost of living for the year 2020 has been compiled in November 2019 when the coronavirus was still not a pandemic. But one could find a different look in the next survey.
The world economy has been shaken up by the coronavirus impact as the most badly hit industries are the travel and tourism. The revenue could see a big drop in Singapore and Hong Kong as the demand has dropped in accommodation plummets, restaurants, and leisure activities. The prices are driven down by a weaker demand as the inhabitants are finding these cities cheaper.
Paris has been knocked out by Osaka according to reports from the EIU out of the list of the top three cities which are expensive with the yen becoming stronger making this city in Japan very costly to live. Across 160 products as well as services 400 prices has been looked at by researchers. Electronic goods and cars are included in it as a major disruption in supply have been seen in China.
There has been a bad impact on the car industry by the shutdown of factories in China during the first two months at the start of this year, as there is a gradual recovery in production to levels of pre-coronavirus. It could make the cars cheaper as dealers and manufacturers have stocks in surplus.
According to Anna Nicholls who is EIU’s industry director said that the time when demand will start returning the vehicle prices is expected to be lower and not very higher as dealers and carmakers as some of the lost revenues are earned back by them. In some regions and countries, where automobile happens to be an important industry the prices will be further lowered by the subsidies.
Car brands may be switched by consumers and will move to those having supply chains that are stronger and disruptions are less.
It has also been predicted by EIU that in some cities the cost of living will rise as adequate measures are taken as the spread of the coronavirus has been slowed down as the overheads of the businesses are increased.
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