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Luxembourg slumps again in financial centres ranking

Luxembourg slumps again in financial centres ranking

by Yannick HANSEN 29.09.2021 From our online archive
Fintech singled out as a weakness
BCEE Spuerkees building in Luxemburg
BCEE Spuerkees building in Luxemburg
Photo credit: Gerry Huberty

Luxembourg sagged further down in a ranking of the world's leading financial centres, with its fintech sector a particular weakness, a study found this month.

The city came in behind Paris, Frankfurt and Amsterdam in the EU - the second time running that it dropped places in the bi-annual ranking, known as the Global Financial Centres Index by the Global Financial Centres Index (GCFI). In March, Luxembourg still ranked second in the EU.

The GFCI uses data from organisations including the World Bank and the OECD to compare financial centres across the world. The study examines five key areas, including business environment, financial sector development, infrastructure factors, human capital and reputation.   

Luxembourg is now the fourth financial centre in the European Union and 23rd worldwide, according to the study. Last year, it still had the top spot in the 27-country bloc. Whereas Luxembourg performed strongly in human capital and the development of the financial sector, the report rated the city's fintech industry just 55th in the world, down from 42nd as opposed to most other financial centres in Western Europe, which gained ground in that area.

Financial hubs New York and London took the top spots in the global ranking, as they had done in the previous edition. The big winner in the EU was Paris,  which gained a full 15 places to finish 10th worldwide, and first in the bloc.

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