Change Edition

Business leaders pessimistic on Luxembourg's competitiveness
Economics

Business leaders pessimistic on Luxembourg's competitiveness

22.05.2013 From our online archive
Luxembourg business leaders have a pessimistic outlook on the Grand Duchy's economic competitiveness, saying that it has suffered significantly over the past two years, a survey has found.

(CS) Luxembourg business leaders have a pessimistic outlook on the Grand Duchy's economic competitiveness, saying that it has suffered significantly over the past two years, a survey has found.

The Luxembourg Business Compass, commissioned by the "Luxemburger Wort" and KPMG, polls private enterprise leaders every six months on current economic issues and developments.

For the latest edition, 66 business owners, CEOs, CFOs, COOs or other leading figures in Luxembourg's most important companies were polled. The companies were picked according to the proportion of GDP generated, as well as the number of employees.

Since the survey was first conducted in 2009, this year's April 2013 report has revealed the most pessimistic evaluation of Luxembourg's competitiveness.

24 percent of respondents said that Luxembourg's competitiveness as a business location is rather poor, up from 19 percent in October last year, with another 2 percent saying it was very poor.

Negative assessment for labour costs & tax and regulatory environment

While two years ago, some 50 percent assessed competitiveness as good, this rate shrank to 35 percent in April 2013.

This negative trend was reflected by the business leaders. When asked how today's competitiveness as a business location compared to two years ago, 62 percent responded that it was somewhat worse, with a further 9 percent saying it was much worse.

One of the main negative factors in this development was the cost of labour, which was perceived as having “gotten worse” over the past two years by 74 percent of respondents. Other areas, which were perceived as having undergone a significantly negative development were the tax environment, the regulatory environment and the administrative burdens placed on companies.

The two areas seeing the most improvement over the past two years meanwhile were identified as the cost management of Luxembourg companies (33 percent), and the promotion of Luxembourg as a business location (24 percent), even though this saw a dip from 35 percent of respondents seeing an improvement in October last year.

The full results of the Luxembourg Business Compass will be presented on Wednesday evening. Check back on wort.lu/en on Thursday for more information and a full report.