Luxembourg recorded one of the lowest government-debt ratios in the European Union (EU), according to Eurostat, the EU’s statistics bureau.
With a government debt of 24.9%, Luxembourg comes in second in the EU after Estonia, with 18.2%, and ahead of Bulgaria, Czechia, Sweden and Denmark.
Healthy pre-COVID public finances and extensive economic support measures
Thanks to an extensive range of economic support measures to help companies face and overcome the COVID crisis, and healthy condition before the pandemic, Luxembourg boasts second-lowest debt ratio in EU.
In total, the public revenues collected until 31 March 2021 amount to €5.4 billion. It represents a growth of +9.5% compared to the first quarter of 2020. Despite the health restrictions in place, public finances are thus showing undeniable resilience and the Luxembourg economy continues to benefit from the government’s balanced choices in the fight against the pandemic, Minister of Finance Pierre Gramegna explains.
The government pursues its policy of relying on quality public investments to support recovery and innovation. Excluding an exceptional accounting impact recorded in 2020, direct and indirect investments increased by €42.7 million, i.e. +13.4% compared to the end of March 2020.
Quality public investments to support innovation
Putting together government-led research and private sector initiative, Luxembourg has the ambition to diversify its economy.
Thanks to a modern infrastructure, a vibrant tech ecosystem and the right access to research funds, Luxembourg combines all the strengths that owe a great deal to its growth.
Find out more about innovation, visit Luxinnovation, Luxembourg’s national innovation agency