Turkmenistan‘s capital Ashgabat has topped the list of the most expensive city for expats in 2021, according to a survey done by consultancy firm Mercer. The city of about one million people was at the second position last year. 

The top 10 cities in the 209-member list contain business hubs like Hong Kong, Tokyo, Shanghai, Singapore and Beijing. In these cities, economic growth has led to a hike in the cost of living.

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But, is this the case in Ashgabat?

First thing first, an expatriate, or expat, is defined as a person who works or lives outside his/her native country.

Coming back to the city, according to Jean-Philippe Sarra of Mercer, high inflation rate is the reason behind the high living cost in Ashgabat, reported news agency AFP.

Rich in gas reserves and ruled by an autocratic government, Turkmenistan is marred with economic woes. A former member of the Soviet Union, Turkmenistan’s economy is still largely dependent on gas exports to Russia. Thus, low gas price heavily impacted the country’s economic situation.

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Many in Ashgabat live in poverty and the high food inflation rate force people to queue up to get hold of more affordable foods, as per a report in the BBC.

But, there is another side of the city, the one with tall, glitzy buildings, which is seen as the government’s propaganda that it sells to the world.

However, the country’s massive gas reserves attract energy giants. So their staff has to work in Turkmenistan by paying a high price for everything from housing, food to transportation.

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Which cities were ranked among the top 10?

On Mercer’s list, Ashgabat was followed by Hong Kong (2), Beirut (3), Tokyo (4), Zurich (5), Shanghai (6), Singapore (7), Geneva (8), Beijing (9) and Bern (10).

Other than Ashgabat, Lebanon’s capital Beirut, which is in economic turmoil, is the only outlier. 

Are any Indian cities among the 209 most expensive cities for expats?

Four Indian cities are on Mercer’s list. These are — Mumbai (78), New Delhi (117), Chennai (158) and Bengaluru (170).