Are you looking to move abroad? The 2023 ranking of the world's most livable cities might give you some ideas. Last month, The Economist Intelligence Unit (EIU), the sister organization of The Economist newspaper, published its annual "Global Liveability Index," which ranks the friendliest cities to live in. The top 10 cities include destinations expatriates already appreciate for their living environments. However, this year's results are full of surprises, particularly in Europe and Asia. What has led to these changes?
Vienna: The world's most livable city
The EIU ranking, which has been conducted since 2004, compares over 100 cities worldwide. In this new edition, 173 cities were compared. The criteria for comparison include healthcare, education, environment, infrastructure, and stability. Vienna emerged as the top-ranked city. Known as "the city of dreams," Vienna stands out not only for its rich culture and architecture but also for its cutting-edge education system, quality healthcare services, and accessible infrastructure. Vienna received top marks in almost every category, scoring 100 points for stability, healthcare, education and infrastructure and 93.5 points for culture and environment, resulting in a total score of 98.4 points.
Vienna has long been engaged in debates about accessibility, the use of public space, and environmental issues. For over 30 years, the Austrian capital has been investing in reinventing itself to adapt to changes, especially regarding the environment. Initiatives such as reducing car usage, improving pedestrian access, greening streets, rethinking housing accessibility in collaboration with residents, and promoting inclusiveness have yielded positive outcomes. Today, the use of cars is relatively minor, and Vienna aims to become a "20-20-20-40" city by 2030, with 20% of transportation attributed to walking, cycling, driving, and public transport, respectively.
This isn't the first time Vienna has ranked as the world's most livable city. It previously topped the rankings in 2018, 2019, and 2022. Vienna also ranks first in other indexes, such as the Monocle 2023 Quality of Life survey and the Mercer 2019 Quality of Life ranking.
What has changed in 2023?
Following Vienna closely, Copenhagen secures the second spot, scoring nearly as high as the Austrian capital. It received 100 points for stability, education system, and environment, 95.8 points for its healthcare system, and 95.4 points for culture and environment, resulting in a total score of 98 points. Like Vienna, Copenhagen has managed to maintain its second position.
Melbourne and Sydney claimed the third and fourth places, respectively, with 97.7 and 97.4 points. These two Australian cities replaced Zurich and Calgary, tied for the third position in 2022. Zurich has slipped to the sixth position this year, while Calgary is seventh, sharing the spot with Geneva. Vancouver, which already ranked fifth in the previous year, has maintained its position. Toronto dropped one place to ninth, having occupied the eighth spot in 2022. Osaka and Auckland complete the top 10. Therefore, the most livable cities in the world are predominantly located in Europe and North America. Canada is the most represented country, with three cities, followed closely by Switzerland and Australia, each with two cities.
However, Europe is losing ground. In 2022, Frankfurt and Amsterdam were included in the top 10 (7th and 9th, respectively). A similar decline can be observed in Asia, with only one city from Japan making it into the top 10 for the second consecutive year.
The impact of the health crisis
To understand these changes, we must consider the years 2020 and 2021. In 2020, due to the pandemic, no index was published. In 2021, the EIU released its world ranking, which showed notable changes compared to previous years. No European city made it into the top 10 of the most livable cities in 2021. Auckland came first, followed by Osaka and the Australian city of Adelaide. There was also Wellington from New Zealand (4th), and Tokyo (tied with Wellington) came next, followed by Perth in Australia (6th), Zurich (7th), Geneva (tied with Melbourne), and Brisbane (10th).
The management of the health crisis played a crucial role in determining the rankings. The top-ranked cities were those that implemented strict policies, such as New Zealand and Japan, which adopted a "zero-Covid" strategy. This approach was initially praised for its effectiveness in the early stages of the pandemic but later faced criticism and was abandoned by these countries. Cities with resilient healthcare systems during the crisis also scored higher. Europe and North America, faced with multiple waves of Covid-19, experienced a decline in their rankings. Efforts by governments in the healthcare sector were also recognized, as seen with Honolulu climbing six places to the 25th position. The city is reaping the benefits of its healthcare initiatives.
Where do European cities stand?
To find European cities in the rankings, we have to look before the pandemic. Vienna was the most livable city in 2018 and 2019, taking over from Melbourne, which had held the top spot since 2015 (Vienna was second). The year 2021 might be considered an "anomaly" for Vienna, as it regained its leading position in 2022. The years 2018 and 2019 also witnessed the emergence of Japanese cities. In 2018, Osaka secured the third position, just behind Melbourne. Tokyo tied with Toronto for the seventh spot. In 2019, Osaka dropped to the fourth position, while Tokyo maintained its position. The decline continued in 2022, with Tokyo dropping out of the rankings. Osaka retained its 10th place, which it also maintains this year.
Cities remained resilient in times of crisis
Other factors contribute to the changes in the rankings. This year, Sydney made a strong comeback, securing the fourth position. It had not been seen in the rankings since 2019 when it held the third position. In September 2020, Australia entered a recession, with its GDP falling by 7%—the first recession since 1991. The country was already grappling with the aftermath of the devastating bushfires in 2019-2020, resulting in environmental and economic catastrophes that continue to impact the nation.
Inflation also influenced the rankings. The cost of living, accessibility, and government efforts to improve the quality of life all play a role in determining a city's ranking. These criteria are closely scrutinized by prospective expatriates. For instance, London dropped to the 46th spot, losing 12 places from the previous year. The British capital has been grappling with a housing crisis for over a decade, with limited available properties as the demand's financial capacity is eroded by the energy crisis. Stockholm, also affected by a real estate crash, dropped to 43rd this year, 22 places lower than in 2022.
Similarly, a city's stability is crucial, especially for expatriates relocating with their families. The tense international context, including the global economic crisis and the war in Ukraine, has amplified the search for security and stability. San Diego and Los Angeles witnessed a decline in their rankings, dropping 17 places each (Los Angeles is now 57th, and San Diego is 61st). On the other end of the scale, cities facing political crises are at the bottom of the rankings.
Which cities to consider for a move?
The EIU's index of the world's most livable cities confirms the positive perception of preferred destinations for expatriates. It comes as no surprise that Canada, with three cities in the top 10, is well represented. European countries, particularly Austria, Denmark, and Switzerland, also hold favorable positions. One might have expected Sweden, Finland, and Germany to be in the top 10. However, the impact of recent crises, such as Finland entering a recession at the beginning of 2023 and the growing threat of recession in Germany, has not been taken into account.
It is important to note that these rankings alone should not be the sole basis for choosing your next destination. Numerous other factors need to be considered, including personal life and career plans, interest in a specific country, and the intended duration of stay.
