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Expats feeling the squeeze overseas

Expat Mood MonitorExpatriates are feeling the squeeze overseas according to Halifax International’s new Expat Mood Monitor.

Since January 2008, over half (52%) of expats have noticed a decrease in their disposable income (with 44% noticing a decrease of 10% or more), and almost two-thirds (62%) have seen a decrease in their overall investment portfolios.

63% of expats also believe that the economic situation in their current country of residence is better than in the UK. In addition, property abroad has suffered to a lesser extent than in the UK, with one third of expats (33%) stating that the value of their property overseas has remained the same since January 2008. With regards to rental markets, over half (54%) of expats have reported no change in their rent payments overseas.

Furthermore, almost nine out of ten (88%) expats have seen an increase in the amount that they are paying for food and over half (52%) have noticed an increase in price of 10% or more.

Commenting on the research, James Gairdner, Managing Director of Halifax International states,

“These figures demonstrate that it is now more important than ever that expatriates are not only provided with more competitive, available and secure saving options, but also have access to the right financial advice when they are overseas. This will enable them to make the most of their investments.”

The research also revealed that 41% of expats living around the world have no plans to ever return to the UK. The top reasons for leaving in the first place (in priority order) are:

  • For a better quality of life (56%)
  • Work (44%)
  • To escape the weather (27%)
  • To escape the youth culture and crime (20%)

Nevertheless, expats still miss elements of the UK, the most popular factor being family or people (44%), followed by the culture, with one third (30%) of expats confessing that they miss the traditional British way of life. Other interesting themes included the UK’s standard of recreational sport, Marks & Spencer’s and John Lewis, Marmite and the countryside. However one in four (27%) miss nothing at all.

With the recent fall in the value of the pound, one in four expats also noticed a 10% increase in their buying power when converting their currency to sterling when they were last in the UK.

Editor’s Notes

1,153 expats living all over the world were surveyed on how the credit crunch has impacted on their lifestyles, both financially and emotionally, for Halifax International’s Expat Mood Monitor. The survey was carried out online in January 2009. This is the first Expat Mood Monitor, which will be released quarterly.

Halifax International provides simple offshore savings to British expatriates through internet and telephone banking services. The savings accounts are available in sterling, euros or US dollars and are specifically designed to meet the needs of British expatriates who are resident abroad. For more information please visit www.halifax-international.com or call +44 (0)1534 846555.