02 december, 2011
The German Bank BERENBERG BANK and the Brussels think tank THE LISBON COUNCIL have released a new survey measuring the overall economic health and the development perspectives of the 17 eurozone countries, The 2011 Euro Plus Monitor. This survey analyses and ranks the eurozone countries according to two criteria: on one hand the overall health of the domestic economy (overall health indicator), and, on the other hand, the ability to adapt to the challenges that will be posed in the course of the next years (adjustment progress indicator). The analysis is based on four categories of indicators: long-term growth potential, competitiveness, fiscal sustainability and fundamental resilience to financial shocks. Countries have then been ranked by categories and sub-indicator, on a scale from 0 (very bad) to 10 (very good).
Generally, Luxembourg ranks much higher for the overall health of its economy (2nd, score: 7.3) than for its adjustment capacity to the forthcoming challenges (9th, score 4.0).
In the overall health indicator, Luxembourg ranks as follows:
• In relation to the long-term growth potential, Luxembourg ranks 2nd among eurozone countries;
• In terms of competitiveness, Luxembourg ranks 8th, (score: 6.4);
• In terms of fiscal sustainability Luxembourg ranks 2nd, (score 9.2);
• Luxembourg’s fundamental resilience to financial shocks ranks 6th, (score: 6.6).
In the adjustment progress indicator, Luxembourg ranks as follows:
• Luxembourg ranks 10th in terms of external adjustment (score: 3.3)
• Luxembourg ranks 15th in terms of fiscal squeeze (score 1.9)
• Luxembourg ranks 5th in real unit employment costs (score: 6.8)
Luxembourg owes its success to its external orientation and its important financial centre, which enable the country to have a high level of regulation in many markets (also in the labour market). The solidity of public finance, the strong growth potential in comparison to other eurozone countries and the low level of public and private consumption are considered to be Luxembourg´s strengths.