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HSBC Bank International Expat Explorer Survey 2009
Country Report: United Kingdom
Overall ranking: 19th out of 26
Increased savings: 24th out of 26
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Luxuries: 16th out of 26
Income: 10th out of 26
Disposable Income: 19th out of 26
Hit hard by the crunch, many are heading home
20 | HSBC Survey
Expats in the UK generally have lower incomes, with 20% of expats in the UK earning $60,000 or less.
Expats in the UK also have less disposable income than their counterparts elsewhere, experiencing a
much higher increase in the cost of accommodation than expats moving to other regions (79% compared
with 48%). In fact 86% rank this as their greatest expenditure. In response to the economic crisis, three
quarters of expats in the UK (75%) have scaled down their spending on essential day-to-day items. Almost
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Emerging Markets / BRIC
HSBC Bank International Expat Explorer Survey 2009
HSBC Bank International Expat Explorer Survey 2009
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global economic downturn and how spending to
only 15% of expats overall who are considering the same move.
other regions (79% compared with 48%). In
These markets are developing economies, that and saving habits have changed as a result of the fact 86% rank this as their greatest expenditure.
Emerging Markets / BRICar
Emerging Markets / BRIC
e experiencing fast growth. BRIC (Brazil, economic crisis. In r
Expats in the UK were the worst savers/investors globally
esponse to the economic crisis, three quarters
, with more than a quarter (27% - the highest
Russia, India and China) make up a large portion The ranking table is determined by four main o
recorded in the survey) saying that they had reduced their savings and investments when compared
These markets are developing economies, that are experiencing fast growth. BRIC (Brazil, Russia, India with life in their home country
f expats in the UK (75%) ha
.
ve scaled down
and China) make up a large portion of these markets.
These markets are developing economies, that are experiencing fast growth. BRIC (Brazil, Russia, India
oand China) make up a large portion of these markets.f these markets. economic factors: annual income in excess of their spending on essential day-to-day items.
US$200,000, a monthly Almost half (44% - the highest recorded figure in
disposable income in the survey) of expats in the UK are considering
excess of US$3,000, an returning home in light of the current financial
“Tax and transportation are
increase in saving while crisis. This provides a stark contrast when com-
costing me most living in
living/working abroad pared with the average of only 15% of expats the UK. The depreciation of
(in their current coun- overall who are considering the same move.
Sterling effectively means
try of residence) and Expats in the UK were the worst savers/
I have had a 30% pay cut.”
- Expat in the UK
having at least two luxu- investors globally, with more than a quarter (27%
ry items in the country - the highest recorded in the survey) saying that
they live in. Each criteri- the
Established Markets
Thinking of moving home?
y had reduced their savings and investments
E
on is equally weighted to arrive at a score. The when comparedwith life in their home country.
T
Established Markets
stablished Markets
hese markets are developed economies, with overall ranking is based on the average score for a
These markets are developed economies, with varying levels of growth.
v
These markets are developed economies, with varying levels of growth.
arying levels of growth. country across the criteria.
Wealth is defined as
an annual income in
excess of US$200,000
and a monthly dispos-
able income in excess of
US$3,000. The overall
wealth level of each
country is determined
by taking an average of
the income and the dis-
Methodology posable income scores outlined in the economics
About Expat Explorer league table.
The Expat Explorer survey, now in its second Respondents answered income-related ques- 11
year, is the largest global survey of expats. tions in one of five currencies that they use most Country Report: United States
Commissioned by HSBC Bank International and often: Australian dollars, Euro, British pound, Overall ranking: 17th out of 26
conducted by third party research company Japanese Yen or US dollars. However, for ease of Increased savings: 22nd out of 26
FreshMinds, more than 3,100 expats were ques- analysis and comparison, all foreign currencies Luxuries: 20th out of 26
tioned between February and April 2009. were converted into US dollars. As per the fol- Income: 6th out of 26
Individuals from four continents described the lowing table, currency conversions were calculat- Disposable Income: 18th out of 26
opportunities and challenges they experience liv- ed based on conversion rates available on 1 April Higher living costs
ing away from home. The survey provides an 2009. These conversion rates were then rounded
insight into how expat life differs from country to one decimal place to provide more rounded Respondents living in the US experienced an
to country, continent to continent and from an income brackets. increase in the cost of their healthcare provision,
expats’ country of origin. Currency
9
9
Conversion rate perhaps due to the way in which its healthcare
A sample size of 30 or more respondents from as of 01 April 2009 system is funded, with 35% spending more
each country was required for inclusion in the USD 1 USD = 1.00 USD money than before moving to the country.
league tables, in order to be considered robust AUD 1 USD = 1.45 AUD The economic crisis has resulted in expats in
and indicative of the views and trends of the spe- EUR 1 USD = 0.75 EUR the US reporting some degree of belt-tightening.
cific population it relates to. The league tables are GBP 1 USD = 0.69 GBP They claim to have cut back on day-to-day
based on a series of interrelated factors (rather JPY 1 USD = 98.63 JPY expenses more than the average expat (63% in the
than a single factor or question) to ensure a fair US vs. 54% on average) and utility bills (41% vs.
assessment of how individual countries rate 31%). Yet, due to other expenses, expats in the US
across the full criteria. The responses of those Country Report: United Kingdom are not managing to save more than the global
who responded “not applicable” have been Overall ranking: 19th out of 26 average during the crisis. Just 39%, compared with
excluded. Each criterion is equally weighted to Increased savings: 24th out of 26 a global figure of 36%, report being able to save
arrive at a score. The overall ranking is based on Luxuries: 16th out of 26 more money since becoming an expat in the US.
the average score for a country across the criteria. Income: 10th out of 26 Just over half, 58% of expats living in the US
Disposable Income: 19th out of 26 say that they are able to invest or save more now
About Expat Economics than they did before moving away from their
Expat Economics is the first report to be pro- Hit hard by the crunch, many are heading home home country. However, 68% of expats overall
duced from the Expat Explorer research. It Expats in the UK generally have lower are saving more money since moving away from
explores the financial implications of life as an incomes, with 20% of expats in the UK earning home. Slightly more US-based expats are consid-
expat, examining individual financial circum- $60,000 or less. Expats in the UK also have less ering returning home than the global average
stances and comparing the experiences of people disposable income than their counterparts else- (22% compared with 15%) and the most fre-
living in different countries. The report also where, experiencing a much higher increase in quently cited reason is increasingly limited career
explores how expat life has been affected by the the cost of accommodation than expats moving prospects.
July/August 2009 Investment International www.investmentinternational.com
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