search

Fitch attributes Luxembourg’s AAA rating to the country’s resilience to the shock of the COVID-19 pandemic. Luxembourg’s economic structure and its relatively low proportion of “in contact services”, as well as the broad support provided by the government to businesses and households impacted by restrictions, made it possible for the country to overcome the crisis with a strong economic performance. Its real GDP had already returned to pre-pandemic levels in the fourth quarter of 2020, and Fitch foresees a GDP growth of 4.6% in 2021, 3% in 2022 and 2.3% in 2023. The agency also predicts that the government deficit will fall to -2.3% of GDP in 2021 and be no more than -0.8% two years later.

The comfortable budgetary situation established in the years preceding the crisis, as well as the exceptionally high income per capita, made it possible for the country to implement a robust economic response to the pandemic while maintaining stable fundamentals.

Stable public debt

Public finances are central for the AAA rating, and although Fitch predicts an increase of Luxembourg’s public debt from 24.9% of GDP in 2020 to 28.3% in 2023, the debt ratio would remain the lowest among its AAA-rated peers and well below the AAA median of 44%. The soundness of Luxembourg’s finances is also an additional safety cushion against a possible increase in expenditure linked to aging over the coming decades.

“Fitch’s rating underlines the importance of sound public finances for a small country like ours,” comments Minister of Finance Pierre Gramegna. “It forms the basis for meeting the challenges of the years to come and enables us to fight back against the economic and social consequences of the pandemic. Our debt ratio is among the lowest among the AAA rated countries and I am convinced that by pursuing a prudent and balanced approach on the budgetary plan, Luxembourg will be able to face the future serenely.”

Read more

Digitalising for sustainability

19-01-2022

Hard material solutions specialist Ceratizit is in the process of implementing an ambitious industry 4.0 approach with sustainability and improved efficiency at its very centre.
Read more

Digitalisation: A global approach

17-01-2022

Technical insulation and engineered foam manufacturer Armacell has over 3,000 employees and manufacturing sites across the world. The company uses its Luxembourg HQ as the base for a digitalisation project, the outcomes of which will be implemented globally.
Read more

A global approach for boosting operational efficiency

13-01-2022

The strong infrastructure, skills and research partners makes Luxembourg an interesting location for industrial digital transformation projects. Cebi drives its global industry 4.0 processes from its headquarters located here.
Read more

Luxembourg remains 3rd in World Talent Ranking

12-01-2022

For the second consecutive year, the 2021 IMD World Talent Ranking places Luxembourg 3rd in the world for its ability to develop, attract and retain the talent needed for its economy to stay competitive.
Read more

Circular by Design Challenge : 12 projects selected

11-01-2022

Following an online pitching session on 6 January, the jury of the Circular by Design Challenge has given its verdict. 12 projects will participate in the second edition of this support programme initiated by the Luxembourg Creative Industries Cluster of Luxinnovation with the support of the Ministry of the Economy, which targets creatives with sustainable and circular ideas.
Read more

All news

Close