Expats feeling squeeze overseas

Expats are feeling the effects of the credit crunch abroad yet 60% believe their economic situation is better than in the UK, according to Halifax International.

The firm's Expat Mood Monitor research found over half of expats have noticed a drop in their disposable income since January 2008, with almost 45% observing a 10% decrease or more.

Nearly two thirds of the 1,153 expats surveyed globally have also seen their overall investment portfolios plunge.

However, just over 60% believe the economic situation in their current country of residence is better than in the UK.

Following the recent fall in the value of the pound a quarter of expats noticed a 10% increase in their buying power when converting their currency to sterling.

Meanwhile, property abroad has suffered smaller price drops than in the UK. A third of expats believe the value of their property has remained the same since January 2008, while over half of expats have reported no change in their rent payments overseas.

The research also found around 40% of expats have no plans to return to the UK with a quarter claiming to miss nothing at all. However, 44% of people miss family and friends while a third yearn for the traditional British way of life.

"These figures demonstrate that it is now more important than ever that expatriates are not only provided with more competitive, available and secure saving options, but also have access to the right financial advice when they are overseas," says James Gairdner, managing director of Halifax International.