© Laurent Weber / RTL
Luxembourg is losing competitiveness, at least according to the IMD World Competitiveness Center's renowned global ranking, which currently places the Grand Duchy 20th out of 64 analysed countries.
Since the 1980s, the Institute for Management Development has been analysing the competitiveness of around 60 countries with no fewer than 260 indicators.
In its latest edition, the IMD now ranks the Grand Duchy as 20th out of 64 countries, a drop of seven spots from last year's list.
© Chambre de Commerce
Denmark tops the international ranking ahead of Ireland, Switzerland, Singapore, and the Netherlands.
The Chamber of Commerce, which coordinated the Luxembourg part of the study, is alarmed by this loss of competitiveness, particularly because the Grand Duchy now ranks lower than countries it has always been ahead of over the last ten years. Those include Belgium, Iceland, Australia, and the Czech Republic.
© Chambre de Commerce
It is particularly in the "economic performance" area that Luxembourg has recorded some major losses, which explains the lower ranking. The report also finds that the automatic indexation system weighs on the competitiveness of certain companies, leading to relocation attempts to access cheaper labour.
Other weaknesses highlighted in the IMD study are the shortage of labour, the high cost of housing, and the lack of available IT skills.
