Minister of Finance Yuriko Backes said: “This further confirmation of our ‘AAA’ rating is reassuring news in the current highly uncertain macroeconomic environment. This rating testifies to the soundness of the government’s responsible fiscal policy and the measures taken to strengthen the resilience of our economy. As we face significant challenges in the months to come, I am confident that the draft State Budget for the year 2023 will reflect a fair balance between maintaining a sound budgetary trajectory and targeted measures in for those who need it most.”
According to DBRS Morningstar, Luxembourg’s rating is testament to its solid public finances, competitive economy and stable political institutions, despite the difficulties of the last two years.
However, the Grand Duchy’s short-term outlook for the economy has suffered due to Russia’s invasion of Ukraine, as well as the accompanying energy price hikes, which saw growth forecasts revised downwards for 2022 and 2023.
Despite these circumstances, the agency said Luxembourg could withstand further shocks, due to its robust economy and resilient financial centre.
Credit rating agency S&P published a similar report on 29 July 2022, drawing similar conclusions to DBRS Morningstar.
