Luxembourg’s Competitive Economy

Luxemboug placed fifth in the 2008 IMD World Competitiveness Yearbook Survey. The country’s Board of Economic Development is a major source of its continued success.

Results announced last week from the 2008 World Competitiveness Yearbook Survey placed Luxembourg as the fifth most competitive economic environment in the world. Only the United States, Singapore, Hong Kong and Switzerland placed ahead of the tiny Benelux country.

The IMD World Competitiveness Yearbook is a highly regarded annual report that ranks countries economic competitiveness using 331 different criteria. Each country's score is calculated by combining the following factors: economic performance, government efficiency, business efficiency and infrastructure. Most of the data is collected from sources such as the World Bank and United Nations, though some also comes form approximately 4,000 survey responses.

While fifth place sounds great for such a tiny country, Luxembourg slipped from last year’s number four ranking. Truly amazing is Luxembourg’s uncanny ability to remain in the world's top 10 for the past decade.

What is the secret to their success? The country's government has allowed its Board of Economic Development to be completely in charge of new development projects. Besides new project, Luxembourg employs a policy of industrial diversification. Another major driver of economic development is the country’s posturing as an attractive destination for intellectual property.

Luxembourg may be a small country, but the government is a forward-thinking body that is moving the country toward a bright and prosperous future.

References

"IMD World Competitiveness Yearbook: Luxembourg ranks 5th out of 55." Luxembourg Board of Economic Development. May 19, 2008.

"Luxembourg Ranked Fifth Most "Competitive" Economy in Annual IMD Survey." CA-Luxembourg-Consulate Press Release. May 19, 2008.