Relocating to the UK - Expats Appear to Remain Financially Sheltered
If you're planning on relocating to the UK it may be interesting to know that expats appear to remain financially sheltered regardless of the current economic outlook in their host country. Relocate Extra recently examined the findings of the 2011 Expat Explorer survey from HSBC Expat (formerly HSBC Bank International) which revealed that expat wealth remains widely immune to global economic troubles, even in countries that have experienced significant turbulence over the past year. Now in its fourth year, Expat Explorer surveyed 3,385 expats from over 100 countries, an increase in reach from 2010. It covers every aspect of life overseas, from managing finances, and the economic benefits of relocating, to lifestyle issues and raising children abroad, and provides HSBC Expat with valuable insights into the expat population and the challenges and opportunities expats face in moving and living abroad. Survey highlights The survey found that 97% of expats in Egypt believe that their economy has deteriorated since 2010, as do 92% in Bahrain and 80% in Japan. Expats in these countries are also more likely than average to report that their economy is weak: Egypt 77%, Bahrain 40%, and Japan 40%. Despite this negative economic outlook, expat finances in these countries remain resilient to the wider troubles. Egypt scores second out of 31 in the Expat Economics league table, which ranks countries based on a number of factors, such as earnings levels, disposable incomes, and ability to accumulate luxuries. Bahrain and Japan also perform strongly on this measure, placed 10th and 12th respectively. Expats in these areas are better off financially. 52% of expats in Bahrain, as well as 58% in Egypt, and 38% in Japan, compared with the global average of 35%, have much higher disposable incomes than they did in their home country. Lisa Wood, head of marketing at HSBC Expat, says, “Many expats are facing an uncertain economic outlook in their current country. Yet, it seems, despite this wider unrest, expats remain financially sheltered from the turmoil. Even in countries where the economy is reported to be weak, expats are still reporting higher earnings than in their home country. Quite simply, expats seem to be financially robust, despite their economic surroundings.” Despite wider economic uncertainty, expats, on the whole, are choosing to remain in their current expat posting, rather than returning to their home country. Only 14% of expats who reported that the situation in their country had deteriorated said they were actively looking to return home, with over half of this group intending to stay in their current location (63%). However, this trend is not witnessed across the globe. Despite similar levels of economic instability, expats in the Middle East are much more likely to want to return home as a result of economic uncertainty than their Eurozone counterparts. Expats in Egypt (100%), Spain (97%), Bahrain (94%) and Italy (88%) are among the most likely to report their economy is currently weak or has deteriorated over the past year. However, of the expats in these countries who think this, those in Egypt and Bahrain were much more likely to want to relocate as a result of the economic situation (57%, 53%) compared with expats from Italy and Spain (22%, 21%). UK performing well Although the UK is in the bottom half of the Expat Economics league table (23rd), it performs well against its EU counterparts, ranking behind only Switzerland (fifth) and Belgium (21st). Almost half of expats in the UK feel that the economy has deteriorated since the beginning of 2010. If you are relocating to the UK don't panic with the Eurozone debt crisis in the background, as the UK comes out strongly against other European destinations. Only 25% of expats here in the UK believe that the economy will continue to deteriorate, compared with 44% in Italy and 38% in Spain. This apparent immunity to the economic situation in their respective countries means that most expats still appear to be better off economically than they would be if they remained in their home countries.