The Luxembourg Business Compass aims to ascertain business leaders’ expectations regarding future economic trends.
Optimism about the economy and about individual company
Luxembourg’s business leaders are very optimistic about the economy, with an all-time high level of 2.3 (on our -5 to +5 scale) since the inception of the LBC back in 2009. In this respect, Luxembourg’s business leaders are aligned with a recent KPMG worldwide CEO Survey in terms of overall optimism. Interestingly however, while in Luxembourg optimism has increased since last year, the opposite tendency is observed at the international level.
The optimism about Luxembourg’s economy translates directly to the individual company level, where increases are foreseen for the next 6 months on all indicators: turnover (+5.2%), profitability (+4.3%), recruitments (+2.7%) and investments (+6.3%). In relation to investments, areas of particular focus are IT and digitalization as well as new products and services.
Competitiveness at a record high too
75% of our business leaders now rate the competitiveness of Luxembourg as high or very high – an all-time high too. This optimism should not however hide the fact that business leaders do perceive a need for long-term reforms. According to our respondents, the measures proposed by the recent “Rifkin study”, at least partially, point into the right direction when it comes to addressing those needs for reform.
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