Iceland has surpassed Switzerland to become the most expensive country in the world.

The cost of living in Iceland is now higher than in Switzerland – a country that has for many years topped the list of most expensive nations, reflecting the sharp increase in prices for services, energy, and consumer spending in the Nordic island country.

Iceland has overtaken Switzerland to become the world's most expensive country to live in, marking a notable shift in global price rankings.

According to a Vietnam News Agency (VNA) correspondent reporting from Europe, the cost of living in Iceland is now higher than in Switzerland – a country that has consistently topped the list of most expensive countries for many years. This change reflects a sharp increase in the prices of services, energy, and consumer spending in the Nordic island nation.

Analysts believe the main reasons stem from the small size of the domestic market and the heavy reliance on imported goods. However, the relatively high income and purchasing power of Icelanders somewhat mitigate the pressure from rising prices.

Although no longer holding the top spot, Switzerland remains among the most expensive countries to live in Europe. Housing, food, and healthcare costs continue to be very high, putting significant pressure on foreign workers and international corporations.

According to observers, this ranking change reflects the significant volatility of price disparities between countries amidst ongoing global economic uncertainty. International cost-of-living comparison reports are becoming increasingly important for businesses' investment decisions and strategies.

The wave of rising prices is also directly affecting the lives of people in both Iceland and Switzerland. The prices of food, restaurant services, and many other essential goods are significantly higher than the world average.

Faced with rising living costs, many households are tending to tighten their spending and limit their entertainment expenses. Meanwhile, businesses are also facing significant pressure as they have to pass on increased operating costs to the prices of their products and services.

Experts predict that in the long term, high price levels could impact the tourism industry, labor market, and international competitiveness of both Iceland and Switzerland.

In particular, economies that are highly open but small in size will continue to be vulnerable to price and exchange rate fluctuations in global financial markets.

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(VNA/Vietnam+)

Source: https://www.vietnamplus.vn/vuot-thuy-si-iceland-tro-thanh-quoc-gia-co-chi-phi-dat-do-nhat-the-gioi-post1113623.vnp