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Luxembourg’s economy: low public debt, improving finances

Published Tuesday May 25 2021

The Luxembourg economy remains healthy inspite of the turbulent year caused by COVID-19. Its public debt is the 2nd lowest in the EU, and the state finances are now back in the black. The economic crisis following the outbreak of the pandemic is putting public finances to the test across the world as countries deal with the health crisis and strive to alleviate the economic effects of lockdowns and restrictions. 

Luxembourg launched an extensive range of economic support measures in order to help its companies face and overcome the COVID crisis. As public finances were in a very healthy condition prior to the pandemic, Luxembourg fares well in terms of its public debt. With a government debt of 24.9%, it ranks second lowest among the EU member states. 

As stated by the Luxembourg Minister of Finance, Mr. Pierre Gramegna “In total, the public revenues collected until 31 March 2021 amount to EUR 5.4 billion, which represents a growth of more than 9.5% compared to the first quarter of 2020. Despite the health restrictions in place, public finances are thus showing undeniable resilience and the Luxembourg economy continues to benefit from the government’s balanced choices in the fight against the pandemic.” 

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