While some countries such as Greece, Italy and Portugal have a public debt of more than 120 percent, Luxembourg is on the other side of the spectrum.
According to figures released by the economic interest group (EIG) known as Toute l’Europe, the Grand Duchy had a debt equivalent to 25.4 percent of its GDP in the second quarter of 2022.
This places the country in third place among the least indebted countries in the European Union. However, while the overall trend is downwards in the EU, Luxembourg is one of the three Member States where debt increased between the first and second quarters of 2022.
According to Toute l’Europe, the Grand Duchy, the Czech Republic and the Netherlands are the only countries to have seen their public debt increase slightly during this period, with the most significant increase being attributed to Luxembourg (+2.8 percent).
This is not a surprise as the Grand Duchy has been investing heavily since the beginning of the energy crisis in an effort to keep businesses afloat and preserve the purchasing power of its residents.
The Prime Minister, Xavier Bettel, also confirmed during his state of the nation speech that the public debt should increase further by 2023, while declaring that he did not want to exceed the 30 percent threshold.
