The ministry of finance is pleased to have received the AAA rating from Scope Ratings, following that of Fitch. Photo: SG9LU

The ministry of finance is pleased to have received the AAA rating from Scope Ratings, following that of Fitch. Photo: SG9LU

Scope Ratings has just confirmed Luxembourg’s triple A rating, the highest possible, thanks to the country’s resilient economy and stable outlook. It forecasts GDP growth of 2.2% in 2023.

A few weeks after , Scope Ratings has also awarded Luxembourg a triple A rating “with stable outlook.”

This is once again the best possible rating to assess the country’s financial situation. It reflects its “resilient economy, as well as the good performance of public finances,” summarises the ministry of finance. Scope underlines the positive impact of government measures to resist successive crises, notably on purchasing power, private consumption and the level of investment. It even notes a downward trend in inflation.

More optimistic than Fitch--which spoke of growth of 1.5%--Scope is counting on GDP growth of 2.2% in 2023, compared with 2% in 2022. Job creation should remain at a high level despite a slowdown in the European Union. The finance ministry comments: “With regard to the financial centre, the agency notes that the regulatory framework and effective supervision are features that explain its resilience and competitiveness.”

Limited public debt

As an open economy, however, Luxembourg remains exposed to the risks of a rise in energy prices, the evolution of the European Central Bank’s (ECB) monetary policy or weaker than expected growth.

The two rating agencies also expect public debt not to exceed the 30% of GDP threshold set by the government. “According to Scope’s analysis, the evolution of the fiscal situation provides some room for manoeuvre to address potential economic challenges,” says the finance ministry.

“I will continue to work to maintain sound public finances, which are the key to a resilient and prosperous economy,” commented finance minister (DP).

Luxembourg was also awarded AAA ratings by and Moody’s in 2022.

This story was first published in French on . It has been translated and edited for Delano.