Thursday, July 19, 2018

Top 20 Cities in the world by purchasing power (by UBS)

Vía el estudio de UBS sobre las ciudades del mundo (ver estudio Cost of living in cities around the world by UBS), os muestro a continuación el ranking de las 20 principales ciudades en base a su poder de compra:

TOP 20 Cities in the world by purchasing power

  1. Los Angeles
  2. Zurich
  3. Miami
  4. Geneva
  5. Luxemburg
  6. Chicago
  7. Toronto
  8. Manama
  9. Hong Kong
  10. New York
  11. Munich
  12. Franffurt
  13. Sydney
  14. Dubai
  15. Berlin
  16. Vienna
  17. Dublin
  18. Montreal
  19. Doha
  20. Tokyo

How to Read the Table
Bringing it all together. 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. (Price + Earnings level)
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. For this ranking, we did not include rent prices, as they fluctuate too much and can have a very large impact on the city ranking.
We display three columns: Gross hourly pay (how much money does a city earn gross, before taxes), Net hourly pay (same as gross minus deductions and taxes), Net annual income (Net hourly pay multiplied by number of working hours).
Bear in mind that all of these are relative to New York City. For example, Hong Kong is ranked 15 in net income, but 9th in net annual income. This is because there are much more annual working hours in Hong Kong than in New York City. Similar effects can be seen in Mexico City and Tel Aviv.

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