Reykjavík among “Cheapest” Capitals in Europe Skip to content

Reykjavík among “Cheapest” Capitals in Europe

By Iceland Review

The economic collapse in Iceland has had various consequences, among them that Reykjavík is now considered one of the least expensive cities in western Europe, that is, for everyone except Icelanders.

Reykjavík City Center in summer. Photo by Páll Kjartansson.

According to an annual study undertaken by the Economist on how expensive 132 cities around the world are for tourists, Reykjavík dropped from the fifth place to 67. Only one city in western Europe, Manchester, is less expensive, mbl.is reports.

Because of the global economic crisis and the depreciation of the GBP, British cities have become considerably less expensive for tourists; London, for example, ranked number eight last year, but has now dropped to 27.

The exchange rate of the Japanese yen has remained high, on the other hand, so Tokyo and Osaka now top the list of the world’s most expensive cities. Oslo, which used to be the most expensive city on the list has dropped to number five, below Copenhagen and Paris.

The world’s least expensive cities are also located in Asia. Karachi in Pakistan ranks lowest.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!