Iceland has surpassed Switzerland to become the most expensive country in the world to live in.
This was reported by the Swedish TT agency.
It was noted that experts based their calculations on data from "Eurostat" and Iceland's central bank "Sedlabanki". It was stated that prices in the country are approximately 3% higher compared to Switzerland. A significant part of the price increase is related to the fact that the island's economy is primarily based on tourism, which leads to inflation in the service sector and an increase in wages in the country.
Another reason is the high housing prices, including in the tourism sector. According to experts, Iceland is excessively dependent on labor-intensive sectors, and this will continue to create inflationary pressure.
According to data from "Eurostat", prices in Iceland were last higher than those in Switzerland in 2018./Oxu.Az