2021 IMD World Competitiveness ranking lists Luxembourg among the world's 12 most competitive economiesThe coronavirus pandemic, and the economic turmoil it created, made 2020 a difficult year for economies across the world. Luxembourg nevertheless improved its competitiveness, according to the IMD World Competitiveness Ranking. The country is in 12th place in the ranking, the podium of which is occupied by Switzerland, Sweden and Denmark. Its neighbouring countries Germany, Belgium and France are in 15th, 24th and 29th place, respectively.

Compared to 2019, Luxembourg improved its ranking by three places. “The crisis has been, for a little over a year, an indicator of the capacity of economies to respond quickly to an exceptional situation, both from a health point of view and the organisation of work. This progression therefore reflects the good capacity of Luxembourg’s economic and political players to adapt to changes and to maintain the country’s competitiveness in such a context,” comments the Luxembourg Chamber of Commerce in a press release.

Performing economy, efficient government

Luxembourg ranks 10th for its economic performance, in particular due to its international trade, employment and domestic economy. It is also in 10th place for its government efficiency, mainly thanks to its strong performance in the fields of public finance, business legislation, and societal and institutional framework.

It ranks 13th in the category business efficiency, particularly because of its productivity and efficiency and finance. It gets its lowest ranking, 24th, in the infrastructure category where it nevertheless comes out well in terms of basic infrastructure and education.

Executive opinion survey

As part of the production of the ranking, respondents of the Executive Opinion Survey were asked to select 5 out of 15 indicator that they perceived as the key attractiveness factors of their economies. Luxembourg received the highest percentage of responses per indicator for:

  • policy stability and predictability (73%)
  • dynamism of the economy (57%)
  • business-friendly environment (51%)
  • competitive tax regime (44%)
  • skilled workforce (40%)

Read more

Inflation in Luxembourg continues to rank among the EU’s lowest


Luxembourg recorded the second lowest annual inflation rate in the EU, according to the latest July figures shared by the statistical office of the European Union, Eurostat.
Read more

CO2 emissions drop by -12% in Luxembourg: second best record in the EU


Eurostat’s latest estimates indicate that in 2022, the EU collectively achieved a 2.8% decrease in CO2 emissions from fossil fuel combustion compared to the previous year. Luxembourg recorded the second biggest reduction in CO2 emissions among EU countries.
Read more

Luxembourg 8th most attractive European country for foreign direct investment


11% of investors rank Luxembourg as one of the top three countries in Europe that are most attractive for foreign direct investment according to the EY’s Luxembourg Attractiveness Survey 2023. While investment is primarily driven by the financial sector, the digital economy is expected to be a significant driver of growth.
Read more

Luxembourg has 2nd highest level of tertiary education in the EU


The European Union has set the target that at least 45% of the population aged 25-34 years should have attained tertiary education by 2030. Luxembourg already significantly exceeds this target and currently ranks 2nd among the EU countries.
Read more

Luxembourg among the world's 10 happiest countries


Luxembourg confirms once again its position as one of the world's happiest countries. It ranks 9th in the 2023 World Happiness Report.
Read more

All news