Luxembourg ranks again as 2nd most resilient economy worldwide

For the third consecutive year, Luxembourg ranks just behind Denmark, maintaining its position among the world's most resilient economies — a result that confirms the country's appeal as a stable, well-governed environment in which to live and build a long-term career.

How Luxembourg scored in 2026

Luxembourg achieved an overall composite score of 98.4, second only to Denmark (100), and ahead of Singapore (97.5), Norway (97.3), Switzerland (97.2) and Germany (94.9). 

The country performed strongly across both macroeconomic and physical risk factors, scoring particularly well in the following areas:

• Productivity (97.1, rank 2)
• Water stress (99.9, rank 22)
• Internet usage (98.6, rank 9)
• GHG emissions (98.2, rank 6)
• Political risk (91.1, rank 5)
• Control of corruption (88.9, rank 8)

On physical risk factors, Luxembourg also posted strong scores across all six dimensions: climate risk exposure (94.4), climate change exposure (94.4), cybersecurity (95.9), seismic risk exposure (100), fire risk quality (63.7) and climate risk quality (64.7). 

Why resilience matters for international companies

For international companies assessing European locations, resilience provides useful context for long-term investment and operational planning. It reflects whether a business environment can support reliable operations, connected teams and continuity across different types of disruption.

Luxembourg’s results combine strong productivity, political stability, digital connectivity and cybersecurity. These factors are relevant to companies considering a European headquarters, a specialised operation or a base for developing activities across the single market.

The index does not replace company-specific due diligence. It offers, however, an independent benchmark of the conditions that underpin Luxembourg’s business environment and help international companies assess the country as a potential location for their European activities.

What the FM Resilience Index measures

The FM Resilience Index, now in its 13th year, ranks 130 countries and territories by the resilience of their business environments. It comprises 18 equally weighted factors — 12 macroeconomic indicators and 6 physical risk factors — covering areas such as political risk, inflation, productivity, cybersecurity, climate exposure and fire risk quality.