The ranking, which is established by IMD World Competitiveness Center, is based on 260 different indicators grouped together in four main categories:
- economic performance
- government efficiency
- business efficiency
- infrastructure
International investment and trade
Luxembourg’s high ranking in the economic performance category is mainly due to its high level of international investment (2nd place) and international trade (4th place). The country also ranks 8th in the business efficiency category, thanks to its excellent performance in terms of finance (3rd place) and productivity & efficiency (8th place).
Policy stability
Respondents of the Executive Opinion Survey, which is part of the study, were asked to select 5 indicators from a list of 15 that they perceived as key attractiveness factors of their economy. The three top factors for Luxembourg are the following:
- Policy stability and predictability: 79%
- Dynamism of the economy: 57%
- Business-friendly environment: 56%