Dublin is the highest ranked euro zone city in a list of the most expensive cities to live in for expatriate employees, according to a global study.

Mercer's 24th annual Cost of Living Survey shows that Dublin has moved up 34 places from 66th to 32nd position. 

Dublin's nearest rivals - Milan and Paris - are ranked 33rd and 34th respectively. 

The survey reveals that Hong Kong has passed Luanda in Angola to take the top spot as the world's most expensive city for expatriates. 

Tokyo and Zurich are in second and third positions, with Singapore in fourth, up one place from last year. 

This means that four out of five of the world's most expensive cities for expatriates are now in Asia.

In the UK, London ranks 19th, Birmingham 128th, Aberdeen 134th, Glasgow 148th and Belfast 152nd. 

Mercer said that factors like instability of housing markets, low inflation, and fluctuating prices for goods and services are impacting the cost of doing business in various cities around the world.

Mercer's Noel O’Connor said that while all cities in the euro zone have risen in the rankings due to the euro strength against the dollar, Dublin has now overtaken Paris to become the most expensive city in the euro zone, in terms of cost of living for expatriate workers.

"The survey identifies cost pressures on expatriate rental accommodation in Dublin as the key driver of this and this in turn reflects the growth of the economy with continuing high levels of foreign direct investment," he added.