Drawn up within the framework of EU-related obligations, the report was presented to economy minister Franz Fayot (LSAP) before being submitted to the economic and social council and to the European Commission. In its assessment of the period 2020-2021 the CNP noted that the substantial aid allocated to companies by the government enabled labour productivity to be maintained. It also highlighted that teleworking has allowed many sectors to meet customer demand while noting that its effects are not yet fully understood.

Productivity determines the standard of living while contributing to the reduction of greenhouse gas emissions, says the CNP.

The main branches of Luxembourg’s economy--finance and the information and communication sectors--stood out in terms of productivity. The manufacturing industry, non-financial services, and trade on the other hand, performed less impressively according to the CNP.

However, the report indicates a “high level but sluggish growth” for the Luxembourg economy. The heterogeneity of enterprises was put forward as one of the reasons, meaning that there is a growing gap between the most productive firms and the least productive ones in the non-financial services and manufacturing sectors.

R&D and innovation, human capital, governance, and regulations are the key fields in which action should be taken to improve productivity, concludes the report.