Luxembourg PESTLE Insights – A Macroeconomic Outlook Report

According to MarketLine, financial intermediation contributed 47% towards GVA, followed by wholesale, retail trade and hotels with a share of 11.5% towards GVA and transport, storage and communication (10.7%) in 2022. These three sectors are forecast to grow by 4.3%, 4.5%, and 3.9%, respectively, in 2023.

According to the World Intellectual Property Organization, Global Innovation Index (2022), Luxembourg’s ranked 24th out of 125 nations in the parameter of logistics performance in 2022.

The overall Luxembourg stock index exhibited a decreasing trend over last year. As of February 14, 2023, the LUXX index stood at 1,599.3, compared to 1,743.1 on February 14, 2022.

Scope

– As of November 2022, Luxembourg government is funding 29 infrastructure projects with more than EUR4.5 million ($4.7 million). The Government of Luxembourg is also helping to build 672 new electric vehicle charging stations, 44 of which are fast chargers.

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.

Companies mentioned

ArcelorMittal

FlintGroup

Skype

Table of Contents

Table of Contents

List of Exhibits

Did You Know?

Country Highlights

Key Economic Updates

Country Snapshot

Political Landscape

Economic Landscape

Social Landscape

Technological Landscape

Legal Landscape

Environmental Landscape

Outlook

List of Tables

List of Tables

Exhibit 1: Luxembourg performance in terms of its country risk analysis in comparison to West Europe and the World

Exhibit 2: Performance overview (score: 1-100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: Luxembourg stock market index

Exhibit 5: Key sectors’ contribution to the economy (2018-25f)

Exhibit 6: Net International Investment Position by type (Q1 2021 to Q4 2022)

Exhibit 7: Inward direct investment position – geographical breakdown by country (2017-21)

Exhibit 8: Key infrastructure indicators (2020)

Exhibit 9: Real GDP and household consumption growth rate (2018-25f)

Exhibit 10: Real GDP growth rate comparison (2022)

Exhibit 11: Volume of export and import of goods and services growth (2018-25f)

Exhibit 12: Current account balance (2018-25f)

Exhibit 13: Top three commodity exports, % of total exports (2017-21)

Exhibit 14: Nuclear reactors, boilers, % share of the world’s total (2021)

Exhibit 15: Interest rates (March 2018 – March 2023)

Exhibit 16: Exchange rate (2018-25f)

Exhibit 17: General government deficit (2018-25f)

Exhibit 18: General government debt (2018-25f)

Exhibit 19: Unemployment rate (2018-25f)

Exhibit 20: Average annual wages (2018-25f)

Exhibit 21: Labor cost index (2018-25f)

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 (2022)

Exhibit 26: Number of patents granted per million population (2021)

Exhibit 27: High-technology exports, % of manufactured exports (2021)

Exhibit 28: Rule of law (rankings), 2022

Exhibit 29: Corruption perceptions index (rankings) (2022)

Exhibit 30: Renewable energy capacity (2017-21)

Exhibit 31: CO2 emissions (2017-21)

List of Figures

List of Figures

Exhibit 1: Luxembourg’s performance in terms of its country risk analysis in comparison to West Europe and the World

Exhibit 2: Performance overview (score: 1-100)

Exhibit 3: Broad categories and weights behind the index

Exhibit 4: Luxembourg stock index (February 2020 – February 2022)

Exhibit 5: Key sectors; contribution to the economy (2017-2024f)

Exhibit 6: Net international investment position (Q1 2020 – Q3 2021) and by type (Q1 2020 – Q3 2021)

Exhibit 7: Cross border mergers & acquisitions (2017-2020) and announced greenfield investments (2017-2020)

Exhibit 8: Key infrastructure indicators

Exhibit 9: Real GDP and household consumption growth rate (2017-2024f)

Exhibit 10: Real GDP growth rate comparison (2021e)

Exhibit 11: Exports, imports and trade balance (2017-2024f)

Exhibit 12: Current account balance (2017-2024f)

Exhibit 13: Top three commodity exports, % of total exports, (2016-2020)

Exhibit 14: Iron and steel, % share of world’s total (2020)

Exhibit 15: Interest rates (February 2017 – February 2022)

Exhibit 16: Exchange rate (2017-2024f)

Exhibit 17: General government net lending/borrowing (2017-2024f)

Exhibit 18: General government gross debt (2017-2024f)

Exhibit 19: Unemployment rate (2017-2024f)

Exhibit 20: Average annual wages (2017-2021e)

Exhibit 21: Labor cost index (2017-2024f)

Exhibit 22: Rural/urban share of total population (2005, 2015, 2025)

Exhibit 23: Age-group share of total population (2005, 2015, 2025)

Exhibit 24: Gender split (2005, 2015, 2025)

Exhibit 25: Internet users as a % of the total population, mobile and broadband penetration rates (2021e)

Exhibit 26: Number of patents granted per million people (2020)

Exhibit 27: High technology exports (% of manufactured exports) (2020)

Exhibit 28: Doing business in Luxembourg, 2020

Exhibit 29: Corruption perceptions index rankings, 2021

Exhibit 30: Renewable energy, installed capacity (2016-2020)

Exhibit 31: CO2 emissions (2016-2020)

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