The Grand Duchy of Luxembourg is a largely open economy with the following strengths:

• strong growth potential,
• a balanced macro-economic foundation, diversified industry,
• an international financial centre,
• modern infrastructure,
• excellent market connectivity and an attractive institutional,
• legislative and taxation framework.

Luxembourg’s public finances are sound. The national debt should continue to decrease in 2019; it was about 21% of GDP in 2018 (well below the 60% limit). Public investment remains high and is focused on highly knowledge-intensive sectors, including a robust information and communications technology sector.

Luxembourg is heavily dependent on foreign trade, which contributes significantly to its economic activity and domestic employment. Luxembourg displays one of the highest levels of market integration among OECD members, with trade-related activities also capturing a high share of employment. The important role of foreign trade is the result of the size of the country which is naturally geared towards neighbouring countries and, in particular, Belgium.