Despite its reputation for prosperity, Luxembourg recorded a poverty rate of 18.8% in 2023, placing it among the highest in Europe, according to a recent Eurostat study.

Luxembourg is frequently cited as one of Europe's wealthiest nations, yet it grapples with a strikingly high poverty rate. According to recent data, one in five residents is at risk of poverty.

While Luxembourg boasts the highest purchasing power in Europe, it also has one of the continent's highest poverty rates. A recent Eurostat study revealed that in 2023, 18.8% of the population lived below the poverty threshold, equating to an income of less than €2,518 per month. The Luxembourg Chamber of Employees recently highlighted that the country's minimum pension also falls below this threshold. Additionally, a study by the Chamber showed that one in seven employees in Luxembourg is considered poor.

Despite its economic strength, Luxembourg ranks 11th among European countries in terms of poverty, performing worse than Portugal (17%), France (15.4%), Germany (14.4%), and Belgium (12.3%). However, it remains ahead of countries with more fragile economies, such as Romania, Bulgaria, and Turkey.

Luxembourg's per capita GDP is among the highest globally, and its residents tend to save more money compared to their European neighbours. Tax cuts planned for 2025 aim to alleviate financial pressure on workers and pensioners. Yet, these measures do little to address some of the country's most pressing issues, most notably an ongoing housing crisis that has rendered the market unaffordable for a significant portion of the population.

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