The economy of Luxembourg won through the global crisis

According to the OECD estimations the economy of Luxembourg has passed the global economic crisis quite well, although the Government can still make a number of steps towards economic diversification and strengthening of the financial sector.

This sector remains the main source of income for Luxembourg and it also provides the most part of jobs in the country. Although that is what makes the country’s economy so vulnerable, since its whole wealth fully depends on one sector.

As a main reason of success of Luxembourg’s economy OECD names a good regulation of its financial sphere. The report though marks the necessity to pay special attention to the position of financial intermediaries and their readiness to external shocks in the financial markets, as well as to the risks of domestic real estate market.

In conclusion the OECD researchers remind that Luxembourg still should improve its legislation on the transparency of financial and bank systems as well as take part in the BEPS project.

Source: http://www.oecd.org/economy/economic-survey-luxembourg.htm