Competitiveness: Luxembourg returns to the global top 20

Switzerland, Singapore and Hong Kong top the 2025 IMD World Competitiveness Ranking, followed by Denmark, the United Arab Emirates and Taiwan. Luxembourg climbs three places compared to 2024, once again securing a spot in the global top 20.

Remaining competitive in a turbulent world

Today’s global economy is marked by uncertainty and fragmentation. According to the IMB report, “Policymakers and business leaders face an environment defined by volatile currency swings, shifting trade alliances, resurgent protectionism, inflationary spikes and heightened geopolitical tensions.”

To assess national competitiveness in such a volatile context, the study evaluates performance across four main pillars:

• Economic performance
• Government efficiency
• Business efficiency
• Infrastructure

In addition to hard data, the ranking incorporates results from an executive opinion survey and input from an international panel of experts.

Luxembourg’s key strengths: Government and business efficiency

Luxembourg received an overall score of 78.17, just behind neighbouring Germany (78.24) and ahead of Belgium (74.57) and France (69.93).

• Its strongest performance is in government efficiency, where it ranks 14^th globally
• It holds 23^rd position for business efficiency, and 24^th for infrastructure
• While economic performance ranks 35^th, it marks a notable improvement over 2024.

Luxembourg’s upward trajectory underlines its continued efforts to maintain competitiveness in an increasingly complex global environment.