On Friday 16 March 2018, the rating agency Standard and Poor's (S&P) announced the continuation of the highest rating for Luxembourg, with a stable outlook.

In its analysis, the agency noted that the rating reflects the prosperous economy of Luxembourg and estimates that the GDP per capita will be of the order of €111,000 in 2018. According to S&P, the level of economic growth will be established on average at 3.3% for the period 2018 to 2021 and the increase in household consumption will continue at the same pace as in 2017, thanks to the beneficial effects of tax reform and wage indexation. S&P also noted that the financial sector remains a key sector, generating economic growth and accounting for nearly 27% of GDP.

In terms of public finances, the agency points out that Luxembourg is pursuing a prudent fiscal policy, and indicates that the Public Administration is running budget surpluses on a recurring basis. S&P estimates that this surplus will remain at 0.7% of GDP for 2018 and will remain, on average, around 0.5% for the period 2019 to 2021. The effectiveness of fiscal policy is also reflected in the fiscal measures have been taken in order to contain public expenditure and thanks to which Luxembourg has managed to absorb the fall in budget revenue following the loss of VAT on e-commerce.

In terms of risks, the analysis cites in particular the possible impact of possible changes in the financial regulation and taxation of companies at the international level. The agency notes, however, that these risks remain low and contained due to Luxembourg's good governance, the diversification of its economy and the responsiveness of its government.

Pierre Gramegna, Luxembourg's Minister of Finance, commented: "I am pleased to see that after DBRS, Standard and Poor's also confirms the favourable outlook for the Grand Duchy in the years to come. The analysis also shows that the financial centre contributes to the new 'AAA' confirmation and confirms the soundness of the government's policy on public finances and the easing of the tax burden during the 2017 reform."