- US, Thailand and South Africa most affected expat locations

- Almost half of expats in UK considering returning home

- Emerging markets rank above established centres for expat finances

- UK worst for saving behind Spain and France

- Despite economic crisis, expats are wealthier and save more than in

country of origin

HSBC Bank International today revealed that the current economic crisis has had a significant impact on expats' financial situation, according to the world's largest survey of expats, Expat Explorer.

The first of three instalments of this year's survey, Expat Economics, showed that expats have reduced spending across the board, with the UK and the US identified as having some of the highest numbers of expats considering a move home.

Expat Explorer, now in its second year, surveyed over 3,100 expats from more than 50 countries and is the largest survey of its kind, with 46% more respondents than last year. Expat Economics is the first of three reports on the results and is a new addition to this year's survey which looks at an expats' economic quality of life. This is determined by four main economic factors:

- Annual income in excess of US$200,000

- A monthly disposable income in excess of US$3,000

- An increase in saving while living/working abroad (in their current

country of residence)

- Having at least two luxury items in the country they live in

Paul Say, Head of Marketing and Communications for HSBC Bank International, said that this year's survey revealed interesting insights into a dynamic segment of the world's population, and also stands as a key indicator into how expats had been affected by global economic events.

"Last year's survey gave us some really valuable insights into such a fascinating group of people and we are pleased to see even more expats participating in this year's survey" said Mr Say.

"As the world continues to undergo a significant economic shift, we are seeing some interesting patterns amongst the expat population, particularly in the changes to their spending habits. Despite expats in the UK and US considering a move home we also found that the majority of expats are staying put despite growing employment uncertainty across many regions."

The crunch and its effect on expats

Overall, the US, Thailand and South Africa have been most affected by the credit crunch, reducing their spending on essential and luxury items, general household maintenance and the money allocated to savings and investments. The largest reduction in essential day-to-day items was seen in Spain, where almost two- thirds (81%) of expats have cut back. Almost four-fifths of expats in the US (79%) and three quarters in the UK (75%) have also scaled down their spending on essential day-to-day items.

Not surprisingly, almost half (44% - the highest recorded figure in the survey) of expats in the UK and close to a quarter (23%) of expats in the US are considering returning home in light of the current financial crisis. This provides a stark contrast when compared to the average of only 15% of expats overall who are considering the same move.

Emerging markets best for expats' finances

26 countries now feature in the ranking table (compared with 12 last year), with Russia (1st place) scoring highly as a result of the number of expats saving more, high annual salaries and the amount of disposable income available. Qatar (2nd place) and Saudi Arabia (3rd place) also scored highly in the areas of increased savings and disposable income, however had their scores affected by lower annual salaries.