Economic Comparison of Los Angeles and Moscow
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Los Angeles and Moscow, two major global cities, stand out as economic powerhouses in their respective regions. Despite their differences in geography, culture, and governance, both cities play crucial roles in their national economies. This article compares key economic metrics of Los Angeles and Moscow, considering factors such as population, GDP, cost of living, real estate, and salaries.
RUSSIAN CALIFORNIA — Los Angeles has a population of approximately 4.04 million within the city limits and around 13 million in its metropolitan area. Moscow, by contrast, is home to 12.6 million people, with its urban agglomeration nearing 20 million residents. Los Angeles has a younger average population age of 34.2 years compared to Moscow’s 40.7 years, reflecting demographic differences in growth and lifestyle.
Economic Output
In 2024, Los Angeles reported a Gross Domestic Product (GDP) of $789.7 billion, significantly higher than Moscow’s $529.1 billion. While Los Angeles benefits from a diversified economy driven by entertainment, technology, international trade, and tourism, Moscow remains the financial and political heart of Russia, with strengths in energy, manufacturing, and logistics.
Cost of Living and Local Purchasing Power
Los Angeles is notably more expensive than Moscow in terms of overall living costs. The cost of living, excluding rent, is 111.7% higher in Los Angeles. Including rent, this figure rises to 128.3%.
Housing prices in Los Angeles are 159.1% higher, with the average rent for a one-bedroom apartment at $2,302.41 compared to $912.16 in Moscow. Restaurant prices are 131.6% higher, and grocery prices are 155.7% higher in Los Angeles. However, local purchasing power in Los Angeles is 52.7% higher than in Moscow, reflecting higher average salaries and spending capacity.
Income and Salaries
The average monthly salary in Los Angeles is $5,830.02, far surpassing Moscow’s $1,061.94. However, the higher salaries in Los Angeles are offset by significantly higher living costs, which reduces disposable income for many residents.
Real estate in Los Angeles is among the most expensive in the United States. High demand and limited supply drive prices upward, particularly in desirable areas like Santa Monica or Beverly Hills. In Moscow, while housing costs are lower, they remain high relative to local salaries, making homeownership challenging for many residents.
Moscow has a more extensive public transportation network, including a world-renowned metro system. Public transport costs are significantly cheaper in Moscow, with a monthly ticket averaging $30.34 compared to $100.00 in Los Angeles.
Moscow also has 50 more universities (60 vs. 10) and 85 more museums (185 vs. 100), emphasizing its role as a cultural and educational hub.
Los Angeles, however, offers geographic advantages with its proximity to beaches, mountains, and mild climate. It also boasts a well-established bike-sharing system and vibrant outdoor recreational options.
Employment and Unemployment
Moscow enjoys a significantly lower unemployment rate of 0.4% compared to Los Angeles’ 8.7%, reflecting differing economic structures and labor market dynamics.
Value-added tax (VAT) is notably lower in Los Angeles at 9% compared to Moscow’s 20%, reducing the cost of certain goods and services in the U.S. city.
Both Los Angeles and Moscow excel in specific areas but cater to vastly different economic realities. Los Angeles represents a high-income but high-cost lifestyle driven by a dynamic economy and global appeal. Moscow, with its lower costs and robust cultural offerings, provides a more affordable but equally vibrant environment. For individuals and businesses, the choice between these two cities often depends on lifestyle preferences, economic priorities, and professional opportunities.
