The rating reflects the strength of Luxembourg’s financial situation due to its solid economic fundamentals, despite a moderate increase in budgetary pressures, writes the Ministry of Finance on Saturday morning.
Morningstar DBRS believes that ‘Luxembourg has enough manoeuvring room to cope with potential moderate budget deficits over the next few years’.
The rating company continues by pointing to the Grand Duchy’s highly developed economy and its position as a global financial centre, and therefore expects a rebound in real GDP growth, service exports, and in private consumption.
In its press release on Saturday, the government also cited the ‘solidity of the institutions, the stable political environment, the prosperity of the economy and Luxembourg’s strong external position’ as factors contributing to the ‘AAA’ rating.
