Brits weather the storm

Wednesday, 20 May 2009 14:46

British expats feel better prepared to beat the global recession

87% of British expats believe they are more equipped to weather the storm abroad than if they had stayed in the UK, according to the latest NatWest International Personal Banking (NatWest IPB) Quality of Life Report. Undertaken in conjunction with the think tank, Centre for Future Studies, the study surveyed British expatriates from across the world.

British expats in the United Arab Emirates are the most financially confident. While all economies worldwide are experiencing recessionary pressures in 2009, more than eight in ten (87%) British expats believe they are better prepared to weather the storm abroad. The study focused on how British expats are faring abroad in the current global economic climate, looking specifically at:

The global financial crisis
Their perceived reduction in quality of life
Declining property prices
Declining value of savings
Declining value of their pension funds
Likelihood of unemployment
Future prospects in the country in which they are living

The report revealed that despite most countries experiencing the knock on negative effects of the current crisis, they feel better off than if they were back in the UK, and believe they made the right decision to leave the UK behind. It would appear that the economic pressures are easier to manage in an environment where the quality of life is deemed high and the work-life balance more enjoyable.

Global crisis

Consequently, the study revealed that whilst the level of concern about the world economic climate among expats in all countries is high, with 68% admitting that at the very least they are nervous, they are not concerned that economic circumstances may force them to return to the UK. Nearly three quarters (74%) said they were not concerned at all by this factor.

However, British expats revealed they have not been left totally unaffected by the current global economic crisis. Over three quarters (78%) stated that the current situation in the country they are living has affected their overall quality of life to some extent. There are also concerns over the rising cost of food and every day goods as well as the declining rate of savings which is likely to be impacted by the currency exchange rate decline for those expats who are paid in Sterling. More than nine in ten (96%) said they were concerned about the value of their savings reducing, whilst 87% stated they were concerned about the value of everyday goods increasing, and 86% are concerned about the cost of food going up. However, British expats were less concerned about the possibility of job losses, with only just 14% concerned that this could be a real possibility.

Spend and save

Yet despite these overall concerns it seems that the majority of expats do not feel the need to spend less and save more, suggesting that they still feel financially secure abroad. More than four in ten British expats (44%) have not reduced their level of spending in any way to help watch the pennies. At the same time nearly half of the expats (48%) stated that they had not made any attempt to start saving more.

When it comes to major purchases, such as new cars, 42% said they have not seen any reason to hold off, and 44% said they have not delayed any holiday plans in an attempt to save money. Overall 64% stated they feel comfortable about their current financial position, with the same number stating that they are happy to be living abroad despite the current economic conditions.

Dave Isley, Head of NatWest International Personal Banking comments: “The dream shared by many Brits of living a prosperous life abroad still appears to be alive and kicking, despite the global economic factors which have to some extent affected British expats. However, it seems that despite the obvious financial concerns shared by many at the moment, which vary from country to country, many expats feel much better prepared to weather the financial storm abroad. The latest NatWest IPB Quality of Life Index reveals that British expatriates are perhaps concerned about rising everyday costs, food prices and the effects on savings due to fluctuating exchange rates that the global downturn has had, but not to the extent that they largely need to save more and spend less. It really would appear that they are finding the current economic pressures easier to manage in an environment where the quality of life is higher than the UK and the work-life balance more enjoyable.”

Financial confidence

Based on the level of concern shown by expatriates across financial factors including rising food and everyday costs and the depleting rate of savings, UAE topped the Financial Confidence Index. British expats living there indicated that they are the least concerned by their financial situation, closely followed by Singapore and China. Expats in the USA showed the least financial confidence of all the expats surveyed.

NatWest Expat Financial Confidence Index 2009
Ranking	Country	Mean Score
1	UAE	26.4
2	Singapore	26.2
3	China	25.6
4	Hong Kong	24.9
5	South Africa	24.5
6	New Zealand	23.3
7	Australia	22.7
8	Canada	21.3
9 =	France	20.8
9 =	Spain	20.8
11	Portugal	19.9