IMD World Competitiveness Booklet 2020

COMPETITIVENESS TRENDS - OVERALL LUXEMBOURG

OVERALL PERFORMANCE (63 countries)

BASIC FACTS Capital Land area (square km '000)

Rank

Luxembourg

2016 2017 2018 2019 2020

3 2019

8

0.893 2019 0.61 2019 71.1 2019 2.3 2019 1.65 2019 5.60 2019 0.49 2019 4.48 2019 164.8 2018 -7.92 2018 112,109 2019

11

11

Exchange Rate (per $)

12

15

62

Population - market size (millions)

CHALLENGES IN 2020 Implement recovery plan for Covid-19: support for economic activity, consumption, public investment, incentives for private • Implement recovery plan for Covid-19: support for economic activity, consumption, public investment, incentives for private investment and a massive Health Plan. • Transition towards a growth model based on productivity gains and a sustainable management of environmental resources. • Address companies rising labour costs and tax burden (compared to European and international systems). • Improve SME support: access to funding, over-regulation, develop economic activity zones, and business succession. • Update legislation on bankruptcy focused on granting companies a second chance. Provid d by: Chamber of Commerce of the Grand Duchy of Luxembourg Chamber of Commerce of the Grand Duchy of Luxembourg

52

Gross Domestic Product (GDP) (US$ billions)

2

GDP (PPP) per capita (US$)

27

Real GDP growth (%)

29

Consumer price inflation (%)

38

Unemployment rate (%)

61

Labor force (millions)

16

Current account balance (% of GDP)

31

Direct investment stocks inward ($bn)

62

Direct investment flows inward (% of GDP)

COMPETITIVENESS LANDSCAPE

Economic Performance

Government Efficiency

Business Efficiency

Infrastructure

Domestic Economy

International Trade

International Investment Employment Prices

Public Finance

Tax Policy

Institutional Framework Business Legislation

Societal Framework

Productivity & Efficiency Labor Market Finance

Management Practices

Attitudes and Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health and Environment Education

6

7

9 9 11

10 9

13

13

15

15

16

17

21

22

28

28

41

43

45

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries)

POPULATIONS < 20 MILLION (34 countries)

2016 2017 2018 2019 2020

2016 2017 2018 2019 2020

5

7

7

7

9

9

9

10

11

12

87

IMD WORLD COMPETITIVENESS BOOKLET 2020