Financial intermediation, real estate, and business activities contributed 47.1% to the gross value added (GVA) in 2023, followed by transport, storage and communication (11.6%) and wholesale, retail, and hotel activities (10.1%). In nominal terms, the three sectors are expected to grow by 5.1%, 5.6%, and 5.5%, respectively, in 2024.
According to the Central Bank of Luxembourg, Luxembourg’s direct investment position was at $994.9 billion in Q4 2023, compared to the investment of $969.2 billion in Q4 2022. The country had portfolio disinvestment of $1.3 trillion in Q4 2023, compared to the portfolio disinvestment of $1.2 trillion in Q4 2022.
According to the Central Bank of Luxembourg, Luxembourg’s direct investment position was at $994.9 billion in Q4 2023, compared to the investment of $969.2 billion in Q4 2022. The country had portfolio disinvestment of $1.3 trillion in Q4 2023, compared to the portfolio disinvestment of $1.2 trillion in Q4 2022.
Key Highlights
- The LUXXX index exhibited a volatile trend over past year. As of May 1, 2024, the index stood at 1,378.8, compared to 1,550.5 on May 01, 2023.
Scope
- Luxembourg to spend about $352 million on rail expansion. The extension of Luxembourg City's central railway station includes the construction of four tracks and two additional rail platforms. The project is expected to complete by 2030.
Reasons to Buy
- Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
- PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
- Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
- This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.
Table of Contents
- Did You Know?
- Country Highlights
- Key Economic Updates
- Country Snapshot
- Political Landscape
- Economic Landscape
- Social Landscape
- Technological Landscape
- Legal Landscape
- Environmental Landscape
- Outlook
- Exhibit 1: Luxembourg’s performance in terms of its country risk analysis in comparison to the West Europe and the world averages
- Exhibit 2: Performance overview (score: 0-100)
- Exhibit 3: Broad categories and weights behind the index
- Exhibit 4: LUXXX index, (May 2023 - May 2024)
- Exhibit 5: Key sectors contribution to the economy (2019-26f)
- Exhibit 6: Net International investment position by type (Q1 2022 to Q4 2023)
- Exhibit 7: Inward direct investment position - geographical breakdown by country (2018-22)
- Exhibit 8: Key infrastructure indicators
- Exhibit 9: Real GDP and household consumption growth rate (2019-26f)
- Exhibit 10: Real GDP growth rate comparison (2023)
- Exhibit 11: Volume of exports and imports growth (2019-26f)
- Exhibit 12: Current account balance (2019-26f)
- Exhibit 13: Top three commodity exports, % of total exports (2019-23)
- Exhibit 14: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof exports, % of world total (2022)
- Exhibit 15: Interest rates (April 2019 - April 2024)
- Exhibit 16: Exchange rate and inflation (2019-26f)
- Exhibit 17: Public finance (2019-26f)
- Exhibit 18: General government debt (2019-26f)
- Exhibit 19: Unemployment rate (2019-26f)
- Exhibit 20: Average annual wages (2019-26f)
- Exhibit 21: Labor cost index (2019-26f)
- Exhibit 22: Rural/urban share of total population (1995, 2005, 2015, 2025f)
- Exhibit 23: Age-group share of total population (1995, 2005, 2015, 2025f)
- Exhibit 24: Gender split (1995, 2005, 2015, 2025f)
- Exhibit 25: Internet users as a percentage of total population, mobile penetration rate and broadband penetration rate (2023)
- Exhibit 26: Number of patents granted per million population (2022)
- Exhibit 27: High technology exports, % of manufactured exports (2022)
- Exhibit 28: Rule of law index (rankings) 2023
- Exhibit 29: Corruption perceptions index (rankings) (2023)
- Exhibit 30: Renewable energy, installed capacity (2019-23)
- Exhibit 31: CO2 emissions (2018-22)
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- ArcelorMittal
- FlintGroup
- Skype
