Luxembourg Climbs to 27th in World Digital Competitiveness Ranking

On Tuesday 4 November 2025, Luxembourg’s Chamber of Commerce published Luxembourg’s results from the World Digital Competitiveness Ranking, which saw the Grand Duchy rise to 27th place.

The ranking, which is produced by the International Institute for Management Development (IMD), evaluates the ability of economies across five continents to adopt and develop digital technologies, which are transforming governance and business models. It comprises 61 indicators, of which 40 are based on statistical data and 21 stem from a survey conducted among business leaders between March and May 2025 (6,162 respondents).

Country performance is assessed according to three factors:

• Knowledge, which includes indicators focused on the ability of human capital to understand and implement new technologies;

• Technology, concentrating on the regulatory context, financing and infrastructure that enable the development of digital technologies;

• Future Readiness, or the capacity of governments, businesses and society at large to benefit from digital transformation.

Each of these factors includes three sub-factors and the overall ranking is derived from the aggregation of these nine sub-factors.

In the overall rankings, Luxembourg comes 27th out of 69 economies, behind Estonia (26th) and ahead of New Zealand (28th). Despite gaining two places compared with 2024, its performance remains well below its 21st position in 2019. The Grand Duchy lags behind neighbouring countries. Germany, 23rd in 2024, gains five places to reach 18th. France (21st) and Belgium (25th) fall by one and four places respectively yet remain ahead of Luxembourg. For the first time since the launch of the ranking in 2017, Switzerland tops the list, ahead of the United States – returning to the leadership positions in second place – and Singapore, which drops from first to third place.

In relation to the Knowledge factor, Luxembourg ranks 24th, behind Japan (23rd) and ahead of Spain (25th). While the country gained nine places compared with 2023, this improvement did not consolidate in 2025, leaving it behind neighbours: Germany (13th), Belgium (20th) and France (21st).

In regard to the Technology factor, Luxembourg ranks 25th, a drop of three places from 2024 and move further from its position of 14th in 2021. The country trails France (14th) and Germany (20th) but ranks ahead of Belgium (28th). On this factor, the United States takes first place from Singapore, with Hong Kong in third, as in the previous year.

For the Future Readiness factor, although Luxembourg achieved a rise of eight places in 2025 (32nd), the overall factor remains a weak link in the national economy. The country lags behind its German (21st), French (26th) and Belgian (29th) neighbours.

The full report can be found at https://www.cc.lu/en/all-information/news/detail/imd-world-digital-competitiveness-ranking-2025.