Credit: IMD World Competitiveness Center
Luxembourg has dropped to 20th place in the IMD World Competitiveness Ranking 2023.
Since 1989, the IMD World Competitiveness Yearbook (WCY) has served as a comprehensive annual report on the competitiveness of countries around the globe. The report covers 64 economies, selected on the availability of comparable international statistics.
In 2023, Luxembourg fell seven places to 20th out of 64 countries (from 13th in 2022).
Denmark topped this year's ranking, ahead of Ireland, Switzerland, Singapore and the Netherlands.
The Luxembourg Chamber of Commerce lamented the Grand Duchy's performance in a recent press release, pointing out that it had lost ground compared to countries with traditionally similarly performing economies (namely Switzerland, Ireland, the Netherlands, Singapore and Sweden). It particularly highlighted the deterioration of the country's ranking in the "economic performance" pillar, in which Luxembourg had ranked 1st in 2022 but has since dropped to 38th.
Luxembourg ranked 10th (up from 13th) for government efficiency, 19th (up from 20th) for business efficiency and 25th (down from 24th) for infrastructure.
The report also highlighted challenges for Luxembourg such as increasing labour costs, talent shortages and high housing prices, among others.
