The annual report for 2021 indicates that reduced working hours subsidies, family leave, direct aid, deferred tax payments as well as state guarantee loans were the main avenues through which the government supported the economy. Around €2.7bn were disbursed by the government since the start of the pandemic, €2bn in 2020 and €681m in 2021. This marks a significant decrease in public spending.

"2021 is characterised by a strong recovery. This is due to the massive help provided by the government during the pandemic to support citizens and businesses, but also to the efforts in the field of digitalisation and sustainable development. I thank my predecessor Pierre Gramegna, who led the ministry prudently during this difficult crisis year," said finance minister Yuriko Backes (DP).

A total of 415 loans linked to covid aid were granted until 31 December 2021, amounting to €194m, of which €165m were guaranteed by the state.

Luxembourg’s economy remained resilient to the effects of the pandemic thanks to its strong financial sector which accounts for more than 50,000 direct jobs and represents a third of the country’s GDP. Employees working in finance were able to make use of teleworking which was an important part in the country’s professional activity.

The grand duchy received the first tranche of the €93m it was due from the EU’s covid economic recovery package in June 2021. It amounted to €12m. The funding will aim to help the country make a successful transition to a greener, digital, and more resilient post-covid-19 economy.