Luxembourg – Country Performance, Brand Strength and Reputation

Luxembourg stands as one of the world’s leading financial hubs, renowned for its banking, investment funds, and insurance sectors. Boasting one of the highest GDP per capita globally, it attracts a wealth of skilled labour, offering a favourable business climate and a strategic European location. But what do leading rankings and indices say about how Luxembourg performs economically, its country brand strength, and reputation?

Let’s take a closer look at:

• Luxembourg’s soft power and country brand strength
• Its appeal to skilled labour, investors, and visitors
• The country’s global contribution to peace and well-being
• How well it fares in terms of happiness and sustainability

Soft Power and Country Brand Strength

In the Global Soft Power Index 2024 by Brand Finance, Luxembourg secures the 30^th spot, behind India (29^th) and Ireland (28^th). Its score has grown by +3.70, improving its position from 32^nd place in last year’s index.

In the U.S. News Best Countries 2023 ranking, Luxembourg secured 24^th position, behind Ireland (23^rd) and Austria (22^nd), and ahead of Portugal (25^th) and Qatar (26^th). Notably, it excels in the area of openness for business (2^nd), quality of life (16^th), and social purpose (15^th).

Is Luxembourg a “Good” Country?

In the Caf World Giving Index 2023, Luxembourg ranked 64^th, trailing behind Nepal (63^rd) and Cameroon (62^nd). It performs admirably in the subfactor of helping a stranger, with 69% of the adult population partaking in such activity. The country was not previously ranked in the 2022 and 2021 indexes.

In the Good Country Index, Luxembourg currently holds the 12^th overall position, dropping by one position since 2022. It is admirably ranked 3^rd in World Order in 2023, climbing from 15^th place in 2022.

According to the Economist Intelligence Unit (EIU) Democracy Index 2023, Luxembourg ranked in the light blue zone (8-9 range) with a score of 8.81 out of 10. This is similar to all neighbouring countries: Germany (8.80), France (8.07), and Belgium (7.64).

The 2022 Corruption Perception Index ranks Luxembourg 10^th, tying with Ireland (10^th). Its score has dropped by four points since 2021.

How Attractive for Talent?

Luxembourg, classified as a high-income country within the Europe regional group, currently holds the 11^th overall position and 8^th regional position in the Global Talent Competitiveness Index 2023. Notably, it ranks high in all pillars; however, the best one is the Attract pillar (1^st), while the Grow pillar presents the country’s biggest challenge, where it ranked 22^nd.

The Expat Insider 2023 notes that Luxembourg ranks 19^th, just behind Kenya and ahead of Australia (20^th). The country performs well in Safety and Security, Salary and Job Security, Career Prospects, Healthcare, and Travel and Transit—making the country a great place to pursue a career, with extraordinary safety, healthcare, and easy transportation. However, the country is also experiencing ‘weaker’ aspects such as Leisure options (51^st), Local friendliness (41^st), Finding friends (37^th), Personal finances (35^th), and Housing (50^th). These factors present a challenge for Luxembourg to further attract potential residents.

In terms of education excellence, Luxembourg does not have any university within the top 100 worldwide, according to the World University Rankings 2024. However, the University of Luxembourg ranked 25^th in the Young University Rankings 2023.

Appeal to Investors, Trade, and Travel

The Bloom Consulting biannual Country Brand Ranking Trade Edition 2022-2023 assesses investment-related variables, emphasising perceptions of a country’s trade-specific brand and evaluating branding performance. Regionally, Luxembourg ranks 14^th, surpassing Finland (15^th) and behind Switzerland (13^th). Worldwide, Luxembourg ranks 27^th.

In addition, the Bloom Consulting Country Brand Ranking Tourism Edition 2022-2023 places Luxembourg in the 23^rd position in the Europe Region, climbing one position since last year’s ranking. It ranks behind Malta (22^nd) and Belgium (21^st).

In the IMD 2023 World Competitiveness Ranking, Luxembourg secured the 20^th position, dropping seven positions since 2022. Currently, it sits just behind Australia (19^th) and the Czech Republic (18^th), while surpassing China (21^st) and Germany (22^nd). Regarding specific characteristics, Luxembourg experienced a major shift in economic performance in 2023, ranking 38^th, dropping from 1^st place in 2022.

Peace and Happiness

The World Happiness Report 2023, which displays the Ranking of Happiness based on a three-year average (2021–2023), ranks Luxembourg 8^th, a slight improvement from the 9^th position in 2022. Luxembourg ranked 6^th for happiness amongst youth (age below 30). Moreover, Luxembourg ranked 12^th for happiness of residents who are 60 and over.

Sustainability

The 2022 edition of the Environmental Performance Index (EPI) ranks Luxembourg 6^th. The EPI analyses the performance of 180 countries, scoring and ranking these countries on their environmental performance using the most recent year of data available, as well as providing calculable changes in scores over the previous decade. Luxembourg has experienced a positive change in score in the past 10 years.

The Sustainable Development Report 2023 ranks Luxembourg 33^rd. The report highlights that it still faces several major challenges in the areas of responsible consumption and production, climate action, life on land, and partnerships for the goals.

Last updated in April 2024. More country profiles here.

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Disclaimer: The information in this article is intended to provide a general overview of Luxembourg’s economic and cultural landscape and facilitate comparison over time. While we strive for accuracy and completeness, we are not responsible for any typographical errors or inaccuracies. The data is provided “as is” without warranty of any kind. Users should verify any information before relying on it for decision-making purposes.