Country Analysis Report - Luxembourg - In-depth PESTLE Insights

The country analysis report on Luxembourg provides a wide array of analytical inputs to analyze the country’s performance, and the objective is to help the reader to make business decisions and prepare for the future. The report on Luxembourg analyzes the political, economic, social, technological, legal and environmental (PESTLE) structure of Luxembourg. The report provides a holistic view of Luxembourg from historical, current and future perspective. Insightful analysis on critical current and future issues is presented through detailed SCPT (strengths, challenges, prospects and threats /risks) analysis for each of the PESTLE segments. In addition, the PESTLE segments are supplemented with relevant quantitative data to support trend analysis. The PESTLE country analysis report series provides an in-depth analysis of 50 major countries.

• Understanding gained from the country analysis report on Luxembourg can be used to plan business investments or market entry apart from a holistic view of the country. • Political section on Luxembourg provides inputs about the political system, key figures in the country, and governance indicators. • Economic section on Luxembourg outlines the economic story of the country to provide a balanced assessment on core macro-economic issues. • Social section on Luxembourg enables understanding of customer demographics through the income distribution, rural-urban segmentation and centres of affluence, healthcare and educational scenario in the country. • Technological section on Luxembourg provides strategic inputs on information communications and technology, technological laws and policies, technological gaps, patents data and relevant laws. • Legal section on Luxembourg provides information about the legal structure, corporate laws, business set-up procedures and the tax regime. • Environmental section provides information on environmental policies in Luxembourg and the performance in terms of important environmental indicators.

PESTLE analysis of Luxembourg identifies issues that affect the country’s performance through the prism of current strengths (strengths), current challenges (weaknesses), future prospects (opportunities) and future risks (threats). The political landscape discusses the evolution of the political scenario in Luxembourg in different periods. The economic, social, foreign and defence policies are considered in the political landscape section. It also discusses the performance of the country as per World Bank Governance Indicators. The economic landscape describes the evolution of the economy of Luxembourg in different periods. It also examines the country’s performance in terms of GDP growth, composition by sector (agriculture, industry and services), fiscal situation, international investment position, monetary situation, credit disbursement, banking sector and employment. The economic landscape also explains the financial system in the country, especially with regard to financial authorities/regulators. The social landscape covers the demographics, education and healthcare scenario in Luxembourg. The social welfare policies of the government along with the country’s performance in terms of healthcare, income distribution and education are also provided. The technological landscape discusses the structure and policies in terms of Intellectual property, research & development, technology agreements/pacts; and policies related to the promotion of technology in Luxembourg. The legal landscape examines the structure of the judicial system, legislation affecting businesses, tax regulations, labor laws, trade regulations and corporate governance in Luxembourg. The environmental landscape in Luxembourg discusses the environmental regulations and policies of the country. The performance of the country in terms of in terms of environmental indicators and impact of environmental policies is also examined.

"Due to the international financial crisis, Luxembourg experienced a severe recession in 2009, with the economy contracting by 3.6%. In the same year, output also contracted sharply, and unemployment rose to 5.7%. The downturn in world trade affected Luxembourg’s economy badly, and the financial sector was also hit by the global financial crisis. The government had to step in with a fiscal stimulus package, and supportive policies from the EU helped the country to alleviate the fallout of the global economic slowdown. The country’s economy recovered in 2010 by posting a growth rate of 3.2%. Growth in the coming years is likely to be lower than before the crisis, although living standards will remain high. The fiscal position has deteriorated rapidly due to a sharp fall in tax receipts from the financial sector, substantial fiscal stimulus measures, and rising spending."

• What is the outlook in terms of political stability, policies towards businesses, external front and popularity of government in Luxembourg? • What is the economic performance of Luxembourg in terms of GDP growth, fiscal situation, international investment position, monetary situation, credit disbursement, and employment among other economic indicators? • What is the performance of Luxembourg in terms of healthcare, income distribution and education? • What is the performance of Luxembourg in technology intensive sectors like telecommunications and information technology, patents and R&D expenditure trends? • What is the legal structure in Luxembourg and are the laws conducive for investment? • What is the performance of Luxembourg in terms of environmental indicators and impact of environmental policies?

Table of contents

TABLE OF CONTENTS
Overview
Catalyst
Summary
PESTLE highlights
Key Facts and Geographic Location
Key facts
Geographical location
PESTLE Analysis
Summary
Political analysis
Economic analysis
Social analysis
Technological analysis
Legal analysis
Environmental analysis
Political Landscape
Summary
Evolution
Structure and policies
Performance
Outlook
Economic Landscape
Summary
Evolution
Structure and policies
Performance
Outlook
Social Landscape
Summary
Evolution
Structure and policies
Performance
Outlook
Technological Landscape
Summary
Evolution
Structure and policies
Performance
Outlook
Legal Landscape
Summary
Evolution
Structure and policies
Performance
Outlook
Environmental Landscape
Summary
Evolution
Structure and policies
Performance
Outlook
Appendix
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Datamonitor consulting
Disclaimer

TABLE OF FIGURES
Figure 1: Map of Luxembourg
Figure 2: Luxembourg – political events timeline
Figure 3: Luxembourg – key political figures
Figure 4: Distribution of seats by political parties after the 2009 elections
Figure 5: Evolution of GDP growth in Luxembourg, 1991–2010
Figure 6: GDP and GDP growth rate of Luxembourg, 2004–14
Figure 7: Sector-specific GDP in Luxembourg, 2010
Figure 8: Agricultural output in Luxembourg, 2005–10
Figure 9: Industrial output in Luxembourg, 2005–10
Figure 10: Services output in Luxembourg, 2005–10
Figure 11: Luxembourg’s trade position, 2006–10
Figure 12: CPI and CPI-based inflation in Luxembourg, 2004–14
Figure 13: Unemployment in Luxembourg, 2004–14
Figure 14: Healthcare expenditure in Luxembourg, 2003–12
Figure 15: Internet users in Luxembourg, 2004–10
Figure 16: R&D expenditure in Luxembourg, 2000–07
Figure 17: Carbon dioxide emissions in Luxembourg, 2003–10

TABLES
Table 1: Luxembourg – key fundamentals
Table 2: Luxembourg – key facts
Table 3: Analysis of Luxembourg’s political landscape
Table 4: Analysis of Luxembourg’s economic landscape
Table 5: Analysis of Luxembourg’s social landscape
Table 6: Analysis of Luxembourg’s technology landscape
Table 7: Analysis of Luxembourg’s legal landscape
Table 8: Analysis of Luxembourg’s environmental landscape
Table 9: Mid-year population by age (millions) in 2010
Table 10: Patents received by Luxembourg from the USPTO – 2003–10
Table 11: International environmental treaties signed and ratified by Luxembourg

Related research categories

By market: Luxembourg (in Europe)