Going for Growth builds on OECD expertise on structural policy reforms and economic performance to provide policy makers with a set of concrete recommendations on reform areas identified as priorities for strong and inclusive growth. The priorities broadly cover product and labour market regulation, education and training, tax and transfer systems, trade and investment rules, as well as innovation policies. The Going for Growth framework has been instrumental in helping G20 countries make progress on their structural reform agenda, including through monitoring their growth strategies to achieve sustained and balanced growth.
Luxembourg’s economic performance is very strong thanks to the dynamic services sector, business-friendly regulations, predictable tax system, sound fiscal policies and openness to global talent. The pace of job creation is strong and benefits not only residents but also cross-border workers and immigrants. The large financial sector is well supervised, but is not exempt from risks. The linkages between domestic banks and international investment funds should continue to be closely monitored. Domestic banks have exposure to high household indebtedness in a context of rising housing prices; this may justify the introduction of additional macro prudential measures.