DBRS views the ongoing diversification of Luxembourg’s small economy as favourable. Luxembourg remains both highly resilient
and attractive as an investment destination, supported by its highly skilled workforce, competitive tax and legal frameworks
and political stability. Although the country has a relatively limited degree of economic diversification, with the financial sector
accounting for 24% of gross value added (GVA), policy efforts to diversify the economy away from the financial sector to other high
value-added industries continue to advance.
Five key priority business sectors
The government began its policy of economic diversification in 2004, identifying five key priority sectors:
- information andcommunication technologies (ICT),
- the space industry,
- biotechnology and
Investment in these areas helped Luxembourg develop a strong technological infrastructure. The country is the European leader in digital skills. In the satellite industry, Luxembourg is among the top ten countries in the world with an active space presence.