According to Scope Ratings, Luxembourg's public finances are "robust" and the exposure to "global shocks" is limited, which is why the agency affirms the country's 'Triple A' status.
According to the agency, the measures put in place by the Luxembourg government helped carry the Grand Duchy through the recent crises better than its neighbouring countries. The statement further notes that the 'energy roundtable' and the 'solidarity packs 1.0 and 2.0' had a positive impact on people's purchasing power, on their consumer habits, as well as on the level of investments.
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Although Europe's conjuncture has slowed down due to the war in Ukraine, Scope estimates that Luxembourg's GDP will grow by 2.2% in 2023. The agency also forecasts that new jobs will be created.
Nevertheless, Scope sees a risk that energy prices in Europe might climb further, which in return influences the interest policies by the European Central Bank. Still, Luxembourg's public debt is not thought to exceed 30% of GDP, which means that the country will have "room to manoeuvre" in the face of further economic constraints.