Dublin has been ranked the 51st most expensive city in the world for expatriates working on an international assignment.

The finding, contained in the 2023 Mercer Cost of Living report, is an improvement on last year when Ireland was found to be the 49th most expensive city

The Irish capital is also less expensive than many European counterparts, including Zurich in third place, Geneva in fourth, Basel in fifth, Bern in seventh, Copenhagen in ninth place, London in 17th, Amsterdam in 28th and Paris in 35th.

However, it is more expensive than other European cities including Luxembourg in 58th, Rome, Oslo in 60th and Hamburg in 62nd place.

"The weakened Euro against the dollar has again influenced Dublin's ranking in 2023," said Noel O’Connor, Senior Consultant, Mercer Ireland.

"High demand in the private rental market, often the biggest cost for companies placing employees on assignment, along with utility costs, present challenges for employers of international assignees."

"Overall, however, Dublin continues to remain an attractive location for expatriates when they elect to go on assignment."

Hong Kong remains the most expensive location for expats, retaining its top spot from last year’s Mercer index.

It is followed by Singapore which rose six places, knocking Zurich from the number two spot.

This year’s ranking includes 227 cities across five continents and looks at costs of more than 200 items in each one, including food, clothes, transport, housing and entertainment.

"In general, countries and cities are continuously striving to attract international businesses as well as digital nomads and expatriates on international assignments," said Mr O'Connor.

"The most successful locations are currently those combining flexible governance for mobile talent, a high quality of life and a reasonable cost of living."

Mercer said the accelerated adoption of remote working in recent years is causing multinationals to think again about how they manage workers, forcing them to be flexible in the face of fierce competition.

It is also leading many employees to reassess their priorities, work-life balance and where they want to be, making companies reimagine what employment arrangements they put in place.

As well as cost, quality of life in a location, as well as risks are all said to be factors that go into location decision-making for both employers and their staff.