Luxembourg PESTLE Insights – A Macroeconomic Outlook Report

Financial intermediation, real estate and business activities contributed 47.5% to the gross value added (GVA) in 2020, followed by transport, storage and communication (11.7%) and, wholesale, retail and hotels (11.2%), according to GlobalData. In nominal terms, the three sectors are expected to grow by 4.0%, 3.5% and 3.9%, respectively, in 2021 as part of the country’s recovery from the coronavirus pandemic.

Canton Luxembourg and Canton Esch comprised 59.8% of Luxembourg’s population as of 2019


– Foreign direct investment inflows into the country amounted to US$65.4bn during Q1-Q3 2020, an increase from the disinvestment of US$19.5bn during the same period last year.

– The overall LUxX (Luxembourg Stock Exchange) index exhibited a declining trend over the past year. As of February 5, 2021, the LUxX, index stood at 1,333.3, compared to 1,366.42 on February 05, 2020.

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




Table of Contents

Table of Contents

List of Exhibits

Did You Know?

Country Highlights

COVID-19 impact

Country snapshot

Political Landscape

Economic Landscape

Social Landscape

Technological Landscape

Legal Landscape

Environmental Landscape


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 Average

Exhibit 2: Performance Overview (Score: 1-100)

Exhibit 3: Broad Categories and Weights Behind the Index

Exhibit 4: Luxembourg Stock Market (LUxX Index)

Exhibit 5: Key Sectors’ Contribution to the Economy

Exhibit 6: FDI Flows (Q1 2019 – Q3 2020), International Investment Position

(Q3 2019 – Q3 2020), and Share of Investments (Assets) (Q3 2020)

Exhibit 7: Direct Investment by Country (2019)

Exhibit 8: Key Infrastructure Indicators

Exhibit 9: Real GDP and Household Consumption Growth Rate (2016-2023f)

Exhibit 10: Real GDP Growth Rate Comparison (2020e)

Exhibit 11: Exports and Imports, Percentage Change (2016-2023f)

Exhibit 12: Current Account Balance (2016-2023f)

Exhibit 13: Top Three Commodity Exports, % of Total Exports (2016-2019)

Exhibit 14: Iron and Steel, % Share of World’s Total, (2019)

Exhibit 15: Interest Rates (January 2016 – January 2021)

Exhibit 16: Exchange Rate and Inflation (2016-2023f)

Exhibit 17: Public Finance (2016-2023f)

Exhibit 18: General Government Debt (2016-2023f)

Exhibit 19: Unemployment (2016-2023f)

Exhibit 20: Average Annual Wages (2016-2019)

Exhibit 21: Labor Cost Index (2016-2019)

Exhibit 22: Rural/Urban Share of Total Population (1995, 2005, 2015, 2025)

Exhibit 23: Age-group Share of Total Population (1995, 2005, 2015, 2025)

Exhibit 24: Gender Split (1995, 2005, 2015, 2025)

Exhibit 25: Internet Users as a Percentage of the Total Population, Mobile Penetration Rate and Broadband Penetration Rate (2020e)

Exhibit 26: Number of Patents Granted Per Million Persons (2020e)

Exhibit 27: High-technology Exports, % of Manufactured Exports (2019)

Exhibit 28: Doing Business in Luxembourg 2020

Exhibit 29: Corruption Perceptions Index (Rankings) (2020)

Exhibit 30: CO2 Emissions (2016-2019)


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