Luxembourg is globally renowned for its successful long-term economic performance. The country has the highest GDP per capita in world – thanks in part to the number of cross-border workers who contribute to its GDP without being counted as part of its population.
However, this is far from the only strong indicator. Luxembourg consistently experiences growth above the EU average (2.6% in 2019) and low inflation (1.7% in February 2020). It has the 3rd lowest public debt ratio in the EU (21% of GDP in November 2019) and ranks as the 15th most competitive economy in the world (IMD, May 2020).
Due to its sound macroeconomic fundamentals, Luxembourg is AAA-rated by all credit rating agencies. It also ranks as the 7th most resilient economy in the world (2020 FM Global Resilience Index).
Luxembourg has the 2nd highest labour productivity in the world (The Conference Board Productivity Brief, 2019). Employment creation is impressive: the number of people employed in the country has increased by 70% between 2000 and 2018. The country also ranks 1st in the world for economy and job security (Expat Insider, 2019).
Luxembourg is an open society and a parliamentary democracy. The county is well known for its political stability. A constitutional monarchy, the country has only had 8 different prime ministers since 1945. This has been instrumental in supporting its ongoing long-term policy approach.