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Luxembourg economy is dominated by service sector which contributed approximately 93% of the total GDP in 2013. The country had gone through the global recession in 2009 as well as Euro debt crisis in 2012, but strong fundamentals have led the country to survive and prosper. Technology-based industries are expected to play a vital

role in economic development, considering increased role of IT infrastructure in different service industries such as financial intermediaries, business services, etc. Automotive industry is one of the key emerging industries in Luxembourg which is attracting many leading players in the country. Luxembourg economy is likely to grow to $81.6 billion at the current price by 2018, with a CAGR of 1.9% during 2013 to 2018.
 
Lucintel, a leading global management consulting and market research firm, has conducted a detailed analysis on this economy and presents its findings in “PESTLE Analysis of Luxembourg 2013.” The study indicates that Luxembourg is facing social challenges in terms of increasing rate of unemployment. The report also highlights the major drivers of the economy. 
 
Luxembourg is a politically stable country which makes it an attractive destination for investments. It is also one of the least corrupt countries in the world ranking 12th in global Corruption Perception Index (CPI) with higher standard of living and even distribution of income in the society. The country is well-positioned in terms of economic stability with low government debt, fiscal surplus, and favourable credit rating from leading agencies. Continuous digital innovation in Luxembourg led technology-based industries to grow with higher rate. It is evident that digitalization is beginning to displace the traditional media forms. Another emerging industry in Luxembourg is automotive component industry in which 9,000 people are employed by more than 30 companies, which generated over $2.1 billion revenue in 2012. Luxembourg has become a key location in Europe for first and second tier suppliers to the automotive component industry. Another key contributing industry to Luxembourg’s GDP is financial intermediaries which is the largest in the Eurozone and is ranked sixth in the world. 
 
Lucintel highlights key challenges faced by Luxembourg. The country faces the only social challenge of increasing rate of unemployment which will affect the income levels and purchasing power of people. The country is also witnessing economic challenge of low foreign exchange reserve considering high import figures.  
 
This report includes in depth analysis of the macro economy of Luxembourg, political scenario, economic and business risks, social and technological analysis. The report highlights various drivers and challenges which have the influence on investment decisions. This report also provides the knowledge on leading industries and the emerging industries in the country. 
 
This unique report from Lucintel will provide you with valuable information, insights, and tools needed to identify new growth opportunities and operate your business successfully in this market. This report will save hundreds of hours of your own personal research time and will significantly benefit you in expanding your business in this market. In today’s stringent economy, you need every advantage that you can find.
 
To make business, investment, and strategic decisions, you need timely, useful information. This market report fulfills this core need and is an indispensable reference guide for multinational materials suppliers, product manufacturers, investors, executives, distributors, and many more that operate in this market. 
 
Some of the features of this report:
  • Trend and forecast for key macroeconomic variables that are useful to make major investment decision
  • Analysis on economic activity, investment environment, and trade structure of the country
  • Major industries in Luxembourg and its contribution to GPD
  • Trends in savings, investments, and consumptions 
  • Analysis of Political, Economic, Social, Technological, Legal, and Environmental scenarios as well as their impact on different industries
  • Analyses on geographical importance and social structure such as labor quality
  • Strength, Weakness, Opportunity, and Threat (SWOT) analysis of  Luxembourg
  • More than 24 figures/charts and 14 tables are provided in this roughly 65-page report
     
Benefits of a Lucintel Report:
Lucintel’s core competency is in market research and management consulting. In the last 14 years, Lucintel has worked on hundreds of market and economic research studies. Lucintel’s market reports offer the following benefits:
  • Enhance your global growth strategy with key economic and potential industry analysis
  • Fine-tune your business expansion planning and market development with analysis of domestic demand analysis and demographics structure analysis
  • Explore business opportunities with the analysis of leading industry, potential sector analysis and by understanding strength,  weakness, opportunity, and threat  of the country
  • Know the business environment of the country using report’s PESTLE analysis and their impact on industry. Also included is Foreign Direct Investment and Trade structure analysis.
Table of Contents
 
1. Executive Summary
 
2. Luxembourg Political Analysis
2.1; Structure and stability of government
2.2: Government changes and policy stability
2.2.1: Policy agenda- reforms and future plans
 
3. Luxembourg Economic Analysis
3.1: Sectoral contribution to GDP and GDP growth rate
3.2: Scenario analysis- future economic growth scenario of Luxembourg
3.3: Pricing trends - recent developments
3.4: Major economic growth drivers-consumption, saving, and investment
3.5: International trade and its contribution to GDP
3.6: Foreign direct investment (FDI)-pattern of investment
 
4. Luxembourg Economic and Business Risk Analysis
4.1: Risk in financial sector
4.1.1: Risk in current account balance
4.1.2: Risk in balance of payment (BOP)
4.1.3: Government revenue and expenditure
4.1.4: External debt and default risk
4.1.5: Risk in foreign exchange reserves and exchange rate
4.2: Credibility in debt market
 
5. Luxembourg Social Analysis
5.1: Social and demographic analysis
5.2: Labor market-quality and availability
5.3: Social development index
 
6. Luxembourg R&D and Technological Factors
6.1: R&D expenditure-technological changes
6.2: Impact of technology in industry
6.3: Technology policy
 
7. Luxembourg Legal Analysis
7.1: Company law
7.2: Labor law
7.3: Tax law
7.4: Economic policies-recent developments
7.5: Doing business in Luxembourg 2013-process to establish business
 
8. Luxembourg Environmental Analysis
8.1: Environment policy
 
9. SWOT analysis-search of potential opportunity in Luxembourg
 
 
 
 
List of Figures
Chapter 3. Luxembourg Economic Analysis
Figure 3.1: Global economic scenario
Figure 3.2: Trend of real GDP growth rate
Figure 3.3: Quarterly trend of index of industrial production and GDP growth rate
Figure 3.4: Trend of per capita income
Figure 3.5: GDP sectoral contribution, 2012
Figure 3.6: Share of different sectors to GDP
Figure 3.7: Trend of leading industries in Luxembourg
Figure 3.8: Trend of financial and insurance industry in Luxembourg
Figure 3.9: Future economic growth scenario of Luxembourg
Figure 3.10: Quarterly trend of inflation and interest rates
Figure 3.11: Annual trend of inflation and interest rate
Figure 3.12: Trend of savings and investments as percentage of GDP
Figure 3.13: Trend of consumption expenditure as percentage of GDP
Figure 3.14: Luxembourg’s international trade structure
Figure 3.15: Exports and imports as percentage of GDP
Figure 3.16: FDI inflows by industry
 
Chapter 4. Luxembourg Economic and Business Risk Analysis 
Figure 4.1: Trend of current account balance and percentage of GDP
Figure 4.2: Terms of trade of Luxembourg
Figure 4.3: Trend of balance of payment
Figure 4.4: Trend of government revenue and expenditure as percentage of GDP
Figure 4.5: Trend of gross government debt as percentage of GDP
Figure 4.6: Trend of gross government debt 
Figure 4.7: Trend of foreign exchange reserves and exchange rate
 
Chapter 5. Luxembourg Social Analysis 
Figure 5.1: Political map of Luxembourg
Figure 5.2: Trend of population in Luxembourg
Figure 5.3: Population age structure
Figure 5.4: Trend of unemployment rate in Luxembourg
Figure 6.1: Trend of R&D expenditure in Luxembourg
 
 
List of Tables
 
Chapter 1. Executive Summary
Table 1.1: Factors affecting business in Luxembourg
 
Chapter 2. Luxembourg Political Analysis 
Table 2.1: Political factors and their impact on business
 
Chapter 3. Luxembourg Economic Analysis 
Table 3.1: Factors affecting economic growth
Table 3.2: Economic factors and their impact on business 
Table 3.3: Economic nsights of Luxembourg
 
Chapter 4. Luxembourg Economic and Business Risk Analysis 
Table 4.1: Credit rating of countries by Moody’s, Fitch, and S&P
 
Chapter 5. Luxembourg Social Analysis 
Table 5.1: Corruption, GINI, Homicide, and Human Development Index
Table 5.2: Social factors and their impact on business
 
Chapter 6. Luxembourg R&D and Technological Factors 
Table 6.1: Technological factors and their impact on Business
 
Chapter 7. Luxembourg Legal Analysis 
Table 7.1: Tax rates in Luxembourg, 2013
Table 7.2: Indicators for starting business
Table 7.3: Ranking in 2013 for ease of doing business
Table 7.4: Legal factors and their impact on business
 
Chapter 8. Luxembourg Environmental Analysis 
Table 8.1: Environmental factors and their impact on business
.

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More than 24 figures/charts and 14 tables are provided in this roughly 65-page report
Lucintel has been in the business of market research and management consulting since 2000 and has published over 1000 market intelligence reports in various markets / applications and served over 1,000 clients worldwide. This study is a culmination of four months of full-time effort performed by Lucintel's analyst team. The analysts used the following sources for the creation and completion of this valuable report:
  • In-depth interviews of the major players in this market
  • Detailed secondary research from competitors’ financial statements and published data 
  • Extensive searches of published works, market, and database information pertaining to industry news, company press releases, and customer intentions
  • A compilation of the experiences, judgments, and insights of Lucintel’s professionals, who have analyzed and tracked this market over the years.
Extensive research and interviews are conducted across the supply chain of this market to estimate market share, market size, trends, drivers, challenges, and forecasts. Below is a brief summary of the primary interviews that were conducted by job function for this report.
 
Thus, Lucintel compiles vast amounts of data from numerous sources, validates the integrity of that data, and performs a comprehensive analysis. Lucintel then organizes the data, its findings, and insights into a concise report designed to support the strategic decision-making process. The figure below is a graphical representation of Lucintel’s research process. 
 

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