Tuesday, 29 September 2009

The effects of the global credit crisis on expats

The global financial crisis has affected most people on a day to day level. One could say that there are differences for expatriates, who may be more used to making adjustments to their life and spending than people who have lived in one place for their entire life. It could be argued that expats are either more or less likely to make big changes to their lifestyle, than native residents of a country, as the financial pressures increase.

Many expats live their life to the max and may have had to tone down on the luxuries in light of a less certain financial future.

On the other hand, having previously moved country, and then had to adjust to a new currency, income, pricing structure, and lifestyle, a small financial squeeze may not be much of an issue for many!

Another consideration is that different countries have been hit harder and expatriates often have the sort of international outlook that may further affect these decisions.

Our Expat Economics survey looked at the views and of those surveyed, expats living in Qatar and Saudi Arabia were the least likely to cut down on luxuries in light of the crisis, while expats in Canada were the most likely to exercise restraint.

Interestingly, over half of expats in Qatar and Saudi Arabia (as well as India and Russia) are actually saving and investing more now than they did before the onset of the financial crisis. This suggests that the luxuries in these countries are simply more affordable, and expats can continue to splash out while still having money left over to help secure their long-term financial health! So if you fancy a taste of the high life, at a lower cost, might it be time to look further afield?

1 comment:

  1. Every country's economic system reacted differently to this crisis and in each country people act different also. Where some still enjoy luxuries others have to work hard to afford decent living. But that's the life you have to live. It is interesting to watch the behavior of expatriates in different countries though, thanks for your post.

    Take care, Ella


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