Luxembourg's Ministry of the Economy has announced that, as of Friday 15 September 2017, Standard & Poor's (S&P) credit rating agency has once again confirmed the "AAA" rating of the Grand Duchy of Luxembourg with a "stable" outlook.

This rating reflects the favorable development of the Luxembourg economy, with an average growth estimated at 3.4% for the period from 2017 to 2020. This positive trend is explained by the recovery in consumption resulting from the implementation of tax reform from 2017 onwards, as well as sustained growth in financial services.

S&P believes that Luxembourg will continue, in the medium term, to implement a sound and balanced fiscal policy. According to the rating agency, public debt stabilizes at 18-19% of GDP over the period 2017-2020 and the budget balance remains in surplus around 0.3% of GDP for the same period.

Potential risks include the evolution of the real estate market, as well as challenges related to changes in financial regulation and international taxation. S&P welcomes, however, the government's policy for sustainable growth and underscores the government's ability to respond effectively to potential new challenges.

Pierre Gramegna, Luxembourg's Minister of Finance, commented "A few weeks after the 2018 budget was finalised, this new AAA confirmation highlights the reliability and soundness of the government's decisions on public finance management. The 'AAA' rating is a sign of confidence in the Luxembourg economy, underlining the attractiveness of the country for investors and consequently encouraging the creation of new jobs."