Luxembourg: 2016 Article IV Consultation-Press Release; Staff Report; Informational Annex; and Statement by the Executive Director for Luxembourg

May 16, 2016

Preview Citation

Format: Chicago

Luxembourg: 2016 Article IV Consultation-Press Release; Staff Report; Informational Annex; and Statement by the Executive Director for Luxembourg, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Summary

This paper discusses growth prospects and downside risks of Luxembourg’s economy. Luxembourg’s small open economy plays a pivotal role in intermediating global capital flows. Deep-rooted traditions of fiscal prudence, business-friendly regulation, a skilled labor force, and low and predictable taxes have made Luxembourg a global financial center, home of multinational companies, and one of the richest countries in the European Union (EU). However, financial market stress could affect Luxembourg’s performance. In case of severe external shocks, unraveling financial exposures could prompt dislocations in markets or institutions beyond the scope of the national authorities. The European Banking Union and EU financial regulations frameworks are particularly positive for Luxembourg.

Subject: Banking, Commercial banks, Economic sectors, Expenditure, Financial institutions, Financial sector, Mutual funds, Pension spending, Public debt

Keywords: April update, Commercial banks, CR, Europe, Financial sector, GDP, General government balance, Global, Government, ISCR, Liability positions vis-à-vis nonresident, Luxembourg's medium-term objective, Luxemburg, Middle East, Mutual funds, Pension spending, Potential GDP, Public debt projection

Publication Details

Pages:

53
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/118
Stock No:

1LUXEA2016001
ISBN:

9781484349113
ISSN:

1934-7685

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