Credit: Robin Jensen, Chronicle.lu
On Friday 30 January 2026, Luxembourg’s Ministry of Finance reported that S&P Global Ratings had confirmed Luxembourg’s “AAA” credit rating with a stable outlook.
The rating reflects the country’s financial strength, despite a deterioration in the budget balance, notably due to increased pressure on expenditure related to defence, social policy, energy subsidies and measures aimed at reducing the cost of living.
According to the agency, Luxembourg’s economy is expected to benefit from the continued improvement in the global economic environment and from declining interest rates, allowing real GDP growth to average 2.1% over the period 2026-2029. The economic outlook is also supported by robust domestic consumption.
Finally, agency highlighted Luxembourg’s attractiveness for investors, underpinned by the efficiency of its institutions, political stability, a competitive financial sector and the predictability of its policies.
