1 Sep 2010 07:00 Africa/Lagos
UK & Europe Trail Emerging Economies on Expat Finances
LONDON, September 1, 2010/PRNewswire/ —
– Vast Majority of Expats in the UK Note a Further Deterioration in the
Economic Climate, one in ten Actively Looking to Move Home
– Wealth gap Continues to Widen Between the East and Mainland Europe
– Stresses of Eurozone Woes Reflected in Expat Sentiment
– BRIC Countries Emerging as Expat Hotspots
The UK & Europe have been revealed as some of the least favourable locations for expat finances, according to the latest findings from HSBC Bank International’s Expat Explorer survey, the largest global survey of expats.
Expat Economics, the first report from the 2010 study, found that the UK, Belgium, Spain, France, Germany and the Netherlands were the worst performing locations when it came to overall wealth, with lower annual salaries, reduced levels of disposable income and fewer expats owning luxurious items.
Now in its third year, Expat Explorer surveyed more than 4,100 expats from over 100 countries, an increase of close to 1,000 additional respondents on 2009 making it once again the largest global survey of its kind. Expat Economics rankings features 25 countries in 2010, determining each location’s economic score based on three main elements:
– Annual income in excess of US$200,000
– Monthly disposable income in excess of US$3,000
– A measure of defined luxuries (such as owning either a swimming pool,
more than one property, a boat/yacht, or going on more luxurious
holidays)
Lisa Wood, Head of Customer Propositions at HSBC Bank International, said that it was clear the wealth gap was widening between the east and west, with expats in emerging economies leaving their counterparts in the Eurozone behind.
“It is clear that the economic volatility that has plagued the UK and Eurozone has had a significant effect on expat finances since 2009,” said Lisa.
“The report has revealed that these countries were the worst performing when looking at purely financial criteria and it was here that we found a significant proportion of expats who had noticed a deterioration in their respective country’s economies. Not surprisingly, a number of expats in these economies are actively looking to return home.”
Expats and the economy
Almost half (47%) of all expats surveyed believed that the economy in their current country has deteriorated since the start of 2009. Reflecting the turmoil experienced in the Eurozone, a larger number of expats based in Spain (93%), Belgium (60%), France (60%) and the United Kingdom (67%) also agreed with this statement.
This was in contrast to the economies that have escaped the worst of the economic downturn, with a smaller number of expats living in the emerging nations of Russia (45%), India (16%) and China (9%) feeling negative about their respective host economies.
Nearly one third (29%) of UK based expats said there have been reduced career opportunities and 31% say they are having to monitor their expenditure more closely – something that has become increasingly important due to the increased cost of living that UK based expats are faced with. Over half of UK based expats agreed that the cost of living was considerably higher than in their home country, with bigger spending on most items except healthcare.
The wealth gap
Mainland Europe, dominates the bottom five positions on the league table. Almost two-thirds (62%) of surveyed expats living in Spain earn below $60,000, as do almost half of the expats living in France (47%) the Netherlands (47%) and Germany (45%). This is much higher than the global average of only one quarter (26%) of expats who earn less than $60,000 and can largely be explained by the high number of expats who choose mainland Europe as a retirement destination.
Conversely, expats in Russia remain the wealthiest in the world, with over one-third (36%) of those surveyed earning over $250,000. Both Singapore (32%) and Bermuda (27%) also have a much higher proportion of expats with an annual income of over $250,000, significantly higher than the world average of 13%.
Accumulation of debt in the UK
Overall, the report revealed that only one in twenty (5%) expats were accumulating more debt and that expats are still saving a greater amount whilst working abroad, with one in five (20%) able to pay off more debt than when they lived in their home country.
Despite this, the report revealed that the UK was home to the highest number of expats who were accumulating more debt (11%) followed by Australia (9%), despite the fact that many expats in these countries are also able to save more than in their home nation (53% and 51% respectively). Spain (29%) and France (36%) have a much smaller percentage of expats saving more than in their home nation, however this is likely to be due to the larger number of retirees amongst this population.
“Whilst we have seen a different and somewhat negative picture in the UK & Europe when compared to the rest of the world, it’s important to remember that expats in these countries are still managing to earn and save more that they did in their home country,” said Lisa.
“As expats tend to be more affected by economic events, it will be interesting to see how migration patterns continue to change as the global economy continues to undergo a period of recovery.”
Follow the updates and join the debate online:
Tweet at: http://twitter.com/expatexplorer
Share your experiences: http://expatexplorer.blogspot.com/
Notes to editors:
About the Expat Explorer survey
The Expat Explorer was commissioned by HSBC Bank International and conducted by third party research company GfK. 4,127 expats were questioned through an online survey from 26th April 2010 to the 7th June 2010, with expats from over 100 countries worldwide taking part – making it a unique and the largest survey of its kind. Please note that the sampling technique used for the 2010 survey does not claim to give a fully representative sample of all expatriates. In addition, it differs substantially from the sampling technique used in 2009. Therefore, comparisons of results year on year are not statistically valid and have been made for illustrative purposes only.
A sample size of 30 or more respondents from each country was required for inclusion in the league tables, in order to be considered robust and indicative of the views and trends of the specific population it relates to. The league tables are based on a series of interrelated factors (rather than a single factor or question) to ensure a fair assessment of how individual countries rate across the full criteria. The responses of those who responded “not applicable” or “refuse to say” have been excluded. Each criterion is equally weighted to arrive at a score. The overall ranking is based on the average score for a country across the criteria.
About Expat Economics
The Expat Economics league table ranks countries in terms of three main economic factors: a.) Income, b.) Disposable Income and c.) a measure of Luxury. All countries with a sample size of 30 and above are included in the economic league table. Scores from each factor is equally weighted to arrive at an Overall ‘Expat Economic’ Score and Overall Rank. For further information on the Expat Economics methodology, please refer to the Expat Economics report available at http://www.offshore.hsbc.com
HSBC Bank International
HSBC Bank International is an award winning provider of offshore financial services, with its head office based in Jersey, Channel Islands. It also has representation in the Isle of Man, Dubai, Hong Kong, South Africa, Singapore and an affiliate office in London. Being a part of HSBC Holdings plc, HSBC Bank International has the experience to offer customers living and or working abroad, tailored offshore financial solutions.
For more information visit: http://www.offshore.hsbc.com
Media enquiries to:
Karen Butcher / Nick Woods
Hill & Knowlton
+44(0)207-413-3181 / +44(0)207-413-3515
karen.butcher@hillandknowlton.com / nick.woods@hillandknowlton.com
Source: HSBC Bank International
Media enquiries to: Karen Butcher, Hill & Knowlton, +44(0)207-413-3181, karen.butcher@hillandknowlton.com; Nick Woods, +44(0)207-413-3515, nick.woods@hillandknowlton.com
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