Lucintel PESTLE Analysis of Luxembourg 2013: Low Government Debt and Favourable Credit Rating are Likely to Boost Luxembourg Economy

Luxembourg economy is dominated by service sector which contributed approximately 93% of the total GDP in 2013. The country had gone through the global recession in 2009 as well as Euro debt crisis in 2012, but strong fundamentals have led the country to survive and prosper. Technology-based industries are expected to play a vital role in economic development, considering increased role of IT infrastructure in different service industries such as financial intermediaries, business services, etc. Automotive industry is one of the key emerging industries in Luxembourg which is attracting many leading players in the country. Luxembourg economy is likely to grow to $81.6 billion at the current price by 2018, with a CAGR of 1.9% during 2013 to 2018.

Lucintel, a leading global management consulting and market research firm, has conducted a detailed analysis on this economy and presents its findings in “PESTLE Analysis of Luxembourg 2013.” The study indicates that Luxembourg is facing social challenges in terms of increasing rate of unemployment. The report also highlights the major drivers of the economy.

Luxembourg is a politically stable country which makes it an attractive destination for investments. It is also one of the least corrupt countries in the world ranking 12th in global Corruption Perception Index (CPI) with higher standard of living and even distribution of income in the society. The country is well-positioned in terms of economic stability with low government debt, fiscal surplus, and favourable credit rating from leading agencies. Continuous digital innovation in Luxembourg led technology-based industries to grow with higher rate. It is evident that digitalization is beginning to displace the traditional media forms. Another emerging industry in Luxembourg is automotive component industry in which 9,000 people are employed by more than 30 companies, which generated over $2.1 billion revenue in 2012. Luxembourg has become a key location in Europe for first and second tier suppliers to the automotive component industry. Another key contributing industry to Luxembourg’s GDP is financial intermediaries which is the largest in the Eurozone and is ranked sixth in the world.

Lucintel highlights key challenges faced by Luxembourg. The country faces the only social challenge of increasing rate of unemployment which will affect the income levels and purchasing power of people. The country is also witnessing economic challenge of low foreign exchange reserve considering high import figures.

This report includes in depth analysis of the macro economy of Luxembourg, political scenario, economic and business risks, social and technological analysis. The report highlights various drivers and challenges which have the influence on investment decisions. This report also provides the knowledge on leading industries and the emerging industries in the country.

For a detailed table of contents and pricing information on these timely insightful reports, contact Lucintel at +1-972-636-5056 or via email at helpdesk@lucintel.com. Lucintel provides cutting-edge decision support services that facilitate critical decisions with greater speed, insight, and cost efficiency. To learn more, visit www.lucintel.com.

This entry was posted in Country Report. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>