Sunday, March 20, 2011

Expatriate Spotlight on Kabul in Afghanistan

The economy of Afghanistan has improved significantly since 2002 due to the infusion of multi-billion US dollars in international assistance and investments, remittances from expats, dramatic improvements in agricultural production and the end of a four-year drought in most of the country. However, Afghanistan still
remains one of the poorest and least developed countries in the world and is highly dependent on foreign aid.

Kabul is the capital and largest city of Afghanistan, and is located in the province of Greater Kabul. It is an economic and cultural centre. Kabul's products include: natural gas, cotton, wool, carpets, agriculture, and some small production companies.

Cost of Living compared to Seattle, WA:
*As at 1 January 2011
  • Alcohol & Tobacco is cheaper;
  • Clothing is cheaper;
  • Communication is cheaper;
  • Education is cheaper;
  • Furniture & Appliances is cheaper;
  • Groceries is more expensive;
  • Healthcare is cheaper;
  • Household is more expensive;
  • Miscellaneous is cheaper;
  • Personal Care is more expensive;
  • Recreation & Culture is cheaper;
  • Restaurants Meals Out and Hotels is cheaper;
  • Transport is cheaper.
The overall weighted cost of living difference between Seattle, WA and Afghanistan, Kabul is -6.73%.

Hardship compared to Seattle, WA:
Seattle is ranked as a minimal hardship location with a hardship premium of 10%. Afghanistan, Kabul is ranked as an extreme hardship location with a hardship premium of 40%. The relative difference in hardship premium (i.e. Host Location Premium minus Home Location Premium) is 30%.

Salary Purchasing Power Parity (SPPP)
The SPPP report calculates how much you need to earn in another location to compensate for a higher cost of living, hardship, and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location.

A person would require a salary of 123,274.40 US Dollar (USD) in Afghanistan, Kabul to have the same standard of living as currently enjoyed in USA, Seattle Wash on a salary of 100,000.00 US Dollar (USD). This salary compensates for the overall cost of living difference of -6.7256%, the hardship difference of 30%, and the exchange rate.

SPPP Formula: Salary in Seattle ($100,000) + Cost of Living Difference (-$6,725.60) + Hardship ($30,000) = $123,274.40 Salary in Kabul

Read more about Kabul

Demo SPPP Report®

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