Residents of Zurich and Geneva earn most globally

Looking for a cheap meal? Steer clear of Geneva. The Swiss city is the most expensive in the world for food, according to UBS Group AG’s Prices and Earnings report for 2018, a survey ranking global city prices, earning levels, purchasing power and working time to buy goods.

While food costs in Geneva may sting, its residents boast the highest earning levels among the 77 cities surveyed by UBS. It’s a hub for private bankers, commodities traders and international organisations including the United Nations, World Bank and Red Cross.

Zurich, home to UBS Group AG and Credit Suisse, ranked second in earning levels and was the most expensive city. That’s due mainly to the price of services, such as haircuts and household help, which are on average 20% higher than in Geneva. Electronics cost 16% more in Zurich than in Geneva on average.

The findings underscore the wealth and quality of life enjoyed by Switzerland’s residents due to high wages, strong currency, stable government, solid infrastructure and public transport as well as abundant access to nature.

Zurich’s gross earnings are up to second from third best in 2006. Geneva’s top-ranked earnings were fourth-highest in 2006 and second highest in 2015, UBS said. Geneva’s earning levels were higher than Zurich’s because certain professions, such as chefs and teachers, earn more in the city of Calvin, UBS said.

Los Angeles, home to the global entertainment industry, came fourth in earning levels and was the only US city in the top five.

The report showed the average worker in Zurich had to work 38.2 hours to earn enough to buy an Apple iPhone. An average worker in Johannesburg had to work 291.9 hours to earn enough to buy the smartphone. – Bloomberg