On Friday 7 September, the DBRS rating agency confirmed the continuation of the AAA rating of the Grand Duchy of Luxembourg with a stable outlook.

In its analysis, the agency stresses that the Luxembourg economy continues to develop favourably, at a growth rate higher than that of the rest of the euro zone. DBRS believes that public finances are robust and healthy, with a public debt level of 23% of GDP, well below the euro area average and the government's target of 30% of GDP. The agency also notes that public finances have performed better than expected in 2017. This result is all the more remarkable as tax reform has resulted in tangible tax cuts for both individuals and businesses.

DBRS believes that Luxembourg's financial centre is in a good position to benefit from the relocation of financial institutions to the Grand Duchy within the Brexit framework. In general, the financial centre will remain one of the engines of growth. In addition, the agency highlights efforts to diversify the Luxembourg economy into other high value-added industries.

With regard to the housing market, DBRS sees an increase in prices, but believes that the risks to financial stability are contained.

Finance Minister Pierre Gramegna commented "I welcome this new confirmation of the country's economic and financial health. The positive outlook, as analysed by this independent agency, underscores the soundness of fiscal and fiscal policy in recent years."