On Saturday 20 April 2024, Luxembourg's Ministry of Finance reported that the Creditreform Rating agency has confirmed the Grand Duchy's "AAA" rating with "stable" outlook.
The agency affirmed both the long-term sovereign rating and unsolicited ratings for foreign and local currency senior unsecured long-term debt of "AAA".
The agency said in its rating report that it expected a resumption of real GDP growth in 2024, supported by public investments, and a "faster economic pace" in 2025.
Creditreform Rating added that recovered consumer confidence in recent months and the expected drop in interest rates this year suggested a more favourable development in economic activity and better performance of the financial sector. In addition, the moderate inflation expected in 2024 is expected to support private consumption.
Against the backdrop of "prudent" fiscal policy and a "firm commitment" to fiscal sustainability, the debt-to-GDP ratio is expected to remain relatively low in the medium term.
