The economy, retaining and attracting talent, sustainability, digital tranformation and local and national elections are among the topics most occupying the minds of business leaders as they gear up for 2023 Maison Moderne

The economy, retaining and attracting talent, sustainability, digital tranformation and local and national elections are among the topics most occupying the minds of business leaders as they gear up for 2023 Maison Moderne

The concerns addressed by the experts we approached for our 2023 Forecast edition indicate that dealing with multiple socioeconomic challenges in a tense geopolitical environment make accurate predictions extremely difficult. However, we managed to pick out five megatrends that will be critical for the grand duchy over the next 12 months.

1. Inflation and economic concerns

Statec's best and worst-case scenarios for 2023 range from an inflation rate of 2.6% to 4.1%, which could trigger one or two wage indexations, in addition to the one delayed from 2022. That means businesses will have to be flexible in their wage structure budgeting, while at the same time dealing with uncertainty in the energy markets and continued fluctuations in interest rates. 2023, then, is expected to be a real struggle for businesses of all sizes, as these factors eat into already delicate margins that have suffered during two years of the covid pandemic.

2. Attracting and retaining top talent

Dealing with talent shortages and the race to hire and retain top talents will be critical for businesses in the future, given the skills gap, especially in the financial and technology sectors. Companies will need to make compelling offers to keep their best players during times of ­uncertainty. Finding a balance in hybrid work models also remains a priority, given Luxembourg's dynamic composition of cross-border workers. But to attract talent from abroad, the country also needs to solve its housing problem and, despite the efforts already made, increase the offer of public schooling in English.

3. Sustainability in focus

Respondents emphasise sustainability in all sectors, from transportation to food. Organic food and regional products are expected to remain in high demand. The importance of efficiency and quality in logistics and processes is equally highlighted. , head of Luxinnovation, also in making businesses more sustainable and that data- driven business strategies can play a vital role in this. Delano will also reduce its number of publications and switch to a lighter type of paper, cutting its carbon footprint by more than 30%.

4. Digital transformation

Artificial intelligence is creating new opportunities. Laurent Marochini emphasises tokenisation plans, cryptocurrency growth and regulation, Web3 developments, cybersecurity and responsible financing. Some experts predict an increase in cyberattacks, while others emphasise the importance of implementing company-wide security measures while also boosting innovation and processes. Here again, a talent shortage in IT specialists could lead to developments that allow non-IT employees to perform automated tasks. And using super-computer Meluxina to create disruptive solutions could be interesting. 

Voter participation

The dual election year is set to dominate the domestic headlines in 2023. All major parties, as well as institutions like Asti, are pushing for more voter participation in the local elections among non-Luxembourgers, now that all residents are eligible to register. But they have to make politics relevant by reaching out directly to foreigners. At the national level, voters will be looking for parties that can deliver much-needed tax reform and have the policies in place that can tackle the housing crisis, make businesses sustainable and competitive, while ensuring that living standards do not fall as inflation bites.