Economy

Luxembourg's entrepreneurs are optimistic

The expectations of the country's business leaders have risen for the fourth year in a row.

07-kpmgAccording to the latest edition of the "Luxembourg Business Compass", an annual report published by KPMG since 2009, Luxembourg's business leaders are expecting high economic growth over the next 12 months. On a scale from -5 (the economy will shrink considerably) to +5 (the economy will grow considerably), CEOs gave an average value of 2.3, indicating that their expectations are at an all-time high. This result is particularly impressive considering that, at international level, KPMG has observed the opposite trend.

Luxembourg more competitive than ever

In Luxembourg, CEOs have never been as positive since this indicator was introduced. Three quarters of the company directors who were surveyed assessed the competitiveness of the national economy as good or very good. The indicator for the innovative power of the Luxembourg economy also reached a new all-time record.

When asked about the changes and modernization recommended by the Rifkin report, approximately one third of respondents said that they believe these measures are all heading in the right direction. 39% believe that the measures will at least partly improve the situation, and no leaders think that the conclusions of the report will have a negative effect on Luxembourg's competitiveness. Similarly, 46% of those surveyed expect the measures proposed by Rifkin to boost the competitiveness of the economy, 22% expect there to be no changes, and only 3% believe that they will cause the economy to shrink.

Brexit will have a positive impact

This confidence of company directors in the Luxembourg economy in general is also reflected in their expectations of how their own companies will develop. On average, business leaders expect their turnover to increase by 5.2% and their profitability by 4.3% over the next six months. The investment forecast for the next six months has even reached a new record with an average projected increase of 6.3%.

On the subject of Brexit, only a minority of 14% of respondents expressed concern at the impact it will have on the Luxembourg economy and on their business. By contrast, 63% expect there to be a positive effect and 2% a very positive effect on the economy in general.

(Article written by the editorial team of the luxembourg.lu portal)

  • Updated 10-07-2017