AAA confirmed: "The Luxembourg economy has major assets"

AAA confirmed “The Luxembourg economy has major assets”

LUXEMBOURG – The rating agency DBRS Morningstar joins the agencies Fitch and S&P to confirm Luxembourg’s AAA.

For Yuricko Backes, “this note bears witness to the soundness of the government’s responsible budgetary policy”.

AFP

The Canadian rating agency indicates that “the short-term outlook for the Luxembourg economy has weakened with the invasion of Ukraine by Russia and the accompanying energy price inflation”. She underlines the downward revision of growth forecasts for 2022 to 2.6%, instead of 3.9% and from 2.9% to 2.1% for 2023. And she insists on the fact that the “Energiedësch” and “Solidaritéitspak” measures will weigh on public finances.

But despite this rather gloomy picture, she remains “convinced that the Luxembourg economy has major assets to withstand any new shocks”. Thanks in particular to the “robust nature of the economic fabric as well as the resilience of the financial center and its international influence with a renowned fund industry and recognized banking and insurance sectors”. And gives it the highest rating, namely AAA, like Standard & Poor’s on Friday and Fitch two weeks ago.

“I’m confident”

This “is reassuring news in the current highly uncertain macroeconomic environment,” said Finance Minister Yuricko Backes. “This note demonstrates the soundness of the government’s responsible fiscal policy, and the measures taken to strengthen the resilience of our economy,” she continued.

“As we face significant challenges in the coming months, I am confident that the draft State Budget for the year 2023 will reflect a fair balance between maintaining a sound budgetary trajectory and targeted measures. for those who need it most”.

(mc)

AAA confirmed: “The Luxembourg economy has major assets”