The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper studies Luxembourg's economic growth performance of the past two decades with a view to shedding light on the growth prospects and fiscal implications. The paper investigates whether the recent weakness in activity is largely transitory or whether it heralds a new era of lower potential output growth. The paper also explains one option for reforming the pay-as-you-go pension pillar, which is to link pension benefits to the contributions base through a 'solidarity factor.'