Last year, Luxemburg’s Gross Domestic Product expanded by 3½ percent – compared to an average of 1.7 percent in the European Union. The global financial crisis, nonetheless, will leave a lasting imprint on the Luxembourg economy. Global trends increase competition Even before the outbreak of the crisis in the summer of 2007 the worldwide scenery of international financial centers was in motion.
The better we understand the channels that affect the health and function of the overall economy, the better we can calibrate our policy decisions to deliver on our dual mandate. Those channels consist of several areas that are, largely, not ours to make policy about but are important for our policies to be effective in promoting the conditions for prosperity.