Produced by China Development Institute in Shenzhen and Z/Yen Partners in London, the Global Financial Centres Index provides evaluations of future competitiveness and rankings for 121 financial centres around the world. In its 35th edition, published on 21 March 2024, Luxembourg ranks 17th in the world and 6th in Western Europe.
Top-level financial centre competitiveness
The study assesses five key areas of competitiveness:
- Business environment (political stability, institutional and regulatory environment, macroeconomic environment, and tax and cost competitiveness)
- Human capital (availability of skilled personnel, flexible labour market, education and development, and quality of life)
- Infrastructure (built infrastructure, ICT infrastructure, transport infrastructure and sustainable development)
- Financial sector development (depth and breadth of industry clusters, availability of capital, market liquidity and economic output)
- Reputation (city brand and appeal, level of innovation, attractiveness and cultural diversity, and comparative positioning with other centres)
Luxembourg ranks 3rd in the world for its human capital, after New York and London. The country ranks 5th for its infrastructure and is in 8th place in terms of business environment.
Leading financial industry sectors
The index also examines relevant industry sectors such as banking, investment management, insurance, finance and fintech. Luxembourg gets high ranks in several sectors:
- 5th in banking
- 12th in fintech
- 13th in finance
- 15th in professional services