Good news for the Grand Duchy: two rating agencies - Scope Ratings and Fitch Ratings - have confirmed Luxembourg's triple-A credit rating, the Finance Ministry announced on Saturday.

As a reflection of Luxembourg's solid financial situation, 'stable economic fundamentals, and careful budgetary management', the country was awarded the best possible rating by two rating agencies.

Scope Ratings spoke of 'the country's resilience in the face of recent health and inflationary crises', whereas Fitch Ratings congratulates its 'robust institutional framework.'

Nonetheless, the growth outlook for Luxembourg remains uncertain for 2023, with forecasts diverging between the two agencies. Regardless, both agencies agree that Luxembourg can expect economic recovery from 2024 onward.

Both agencies also warn of the financial risks associated with developments in the property sector, particularly for highly indebted households, following the tightening of monetary policies. Furthermore, Scope Ratings highlights the potential risks that Luxembourg may face in the long term due to evolving trends in international taxation and budgetary pressures arising from an aging population.