Moving abroad for a better life聽abroad聽isn't聽a聽new聽idea, but its popularity is surging as global economies struggle with persistent inflation.聽Economic recessions compel more people to contemplate relocation abroad, highlighting a more significant phenomenon than it may initially appear.
People from the US are moving abroad to escape rising聽costs
While this聽isn't聽labeled an聽鈥渆xodus,鈥澛爐he trend is notable enough to capture international media interest. In the U.S., inflation rates have decreased from 9% in July 2022 to 3.2% in February, yet the Federal聽Reserve's聽goal to lower it below 2% remains unmet. Many Americans, confronted with tighter budgets as costs escalate,聽are choosing聽to move to countries with lower living expenses to maintain their purchasing power. Popular destinations include Mexico, Belize, and Ecuador.
In the U.S., the average cost of living is above $61,000 annually, with substantial variations across states. For example, residing in Hawaii may cost up to $180,000聽per year, while New Hampshire averages around $115,000 annually. Not all American expatriates opt for financially favorable locations. Those seeking employment聽opportunities聽generally聽move to Canada, the U.K., France, and Germany, whereas digital nomads favor Portugal and Mexico. Although cost is a聽major聽driver, some also depart due to disillusionment with American capitalism.聽
Similar trends are noted in the U.K., Japan, and Italy, indicating a global pattern.
People in the United Kingdom seek a healthier聽environment
Is the rise of digital nomadism accelerating moving abroad plans? Numerous countries, eager to bolster tourism and their economies, now offer digital nomad visas. This increase has spurred a surge in this new group of expatriates, many聽of whom are聽keen to escape the high costs back home. For instance, some British digital nomads have relocated to Canada, Thailand, or other Southeast Asian nations. As these countries consider a unified visa to boost their economies, British expatriates聽there聽find their money goes much further. In 2024, the cost of living in Thailand is about $800 monthly, significantly less than the $2,200 needed in the U.K.
Like their American counterparts, British citizens moving abroad often cite reasons beyond finances, including a desire for a better environment that improves their mental well-being and that of their children. They seek a quieter life, closer to nature, where they can regain control of their time.
When salaries fail to keep up
In Japan, expatriates are leaving despite the聽country's聽attempts to welcome and retain foreign workers amid a demographic decline. Many are moving due to stagnant wages and聽rising聽living costs, especially in major cities like Tokyo. They find better earning opportunities in countries like Australia, Germany, or Canada, which also need skilled workers.
This聽same聽motive drives French nationals to relocate to Canada, Switzerland, or Australia. The situation is even more pronounced in Italy, where there has been a decade-long聽"exodus"聽of young Italians, exacerbated by the inflation crisis.聽According to the ,聽the number of聽Italian nationals living abroad聽has聽doubled from 3 million in 2006 to 6 million today.
Italians are looking for better career opportunities abroad
Most Italian expatriates are young graduates who settle mainly in Germany, Switzerland, France, and the U.K.鈥攃ountries also facing rising living costs. Popular destinations outside Europe include Brazil, Argentina, and the United States. Italy remains a country of emigration, primarily for economic reasons. These expatriates often find they can earn two to three times more abroad. While economic factors are a significant driver, career advancement opportunities and perceived stagnation in聽Italy's聽social mobility system also play roles. Many young Italians argue that the state and businesses back home do not place enough trust in the youth. Once settled, many start families, further contributing to聽Italy's聽demographic challenges.
