Abstract
This 2012 Article IV Consultation highlights that economic growth in Luxembourg slowed in 2011 amid the euro area sovereign debt crisis. Reflecting sluggish external demand, economic activity is expected to further weaken, with growth projected to decline to ½ percent in 2012. Executive Directors have welcomed the continued stability of Luxembourg’s economy despite the turbulence in the euro area. They have commended the authorities on measures taken to strengthen the financial sector and to implement recommendations from the Financial Stability Assessment Program update.
Fund Relations
(As of May 31, 2012)
Mission: May 3-14, 2012. The concluding statement of the mission is available at: http://www.imf.org/external/np/ms/2012/051412.htm
Fund relations: The previous Article IV consultation took place on March 24–April 4, 2011 (IMF Country Report No. 11/108). The staff report and associated Executive Board’s assessment are available at: http://www.imf.org/external/pubs/cat/longres.aspx?sk=24858.0
Membership Status:
Joined: December 27, 1945; Article VIII
General Resources Account
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 418.70 | 100.00 |
| Fund Holdings of Currency | 264.48 | 63.17 |
| Reserve Position in Fund | 154.23 | 36.84 |
| Lending to the Fund | 99.00 |
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 418.70 | 100.00 |
| Fund Holdings of Currency | 264.48 | 63.17 |
| Reserve Position in Fund | 154.23 | 36.84 |
| Lending to the Fund | 99.00 |
SDR Department:
| SDR Million | Percent Allocation | |
|---|---|---|
| Net Cumulative | ||
| Allocation | 246.62 | 100.00 |
| Holdings | 243.91 | 98.90 |
| SDR Million | Percent Allocation | |
|---|---|---|
| Net Cumulative | ||
| Allocation | 246.62 | 100.00 |
| Holdings | 243.91 | 98.90 |
Outstanding Purchases and Loans
None
Financial Arrangements
None.
Projected Payments to the Fund
(SDR million based on existing use of resources and present holdings of SDRs):
| Forthcoming | ||||
|---|---|---|---|---|
| Type | 2012 | 2013 | 2014 | 2015 |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 |
| Changes/ | ||||
| Interest | 0.00 | 0.01 | 0.01 | 0.01 |
| Forthcoming | ||||
|---|---|---|---|---|
| Type | 2012 | 2013 | 2014 | 2015 |
| Principal | 0.00 | 0.00 | 0.00 | 0.00 |
| Changes/ | ||||
| Interest | 0.00 | 0.01 | 0.01 | 0.01 |
Exchange Rate Arrangement
Luxembourg’s currency is the euro, which floats freely and independently against other currencies. Luxembourg has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of restrictions on payments and transfers for current international transactions, other than restrictions notified to the Fund under Decision No. 144 (52/51).
Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)
In early 2011, the Financial Action Task Force (FATF) concluded that Luxembourg had made progress to remedy several deficiencies in its AML/CFT, and ended the enhanced review process of the FATF’s International Cooperation Review Group. Luxembourg is now subject to a yearly follow-up by the FATF. However, some shortcomings remain, in particular in relation to legal entities transparency (i.e. beneficial ownerships and control), and the FATF has been encouraging Luxembourg to continue its efforts to remedy all deficiencies identified in its mutual evaluation report.
Statistical Issues
(As of May 31, 2012)
| I. Assessment of Data Adequacy for Surveillance | |
|---|---|
| General: Data provision is adequate for surveillance. The Central Service for Statistics and Economic Studies (Statec) regularly publishes a full range of economic and financial data and provides an advance release calendar for main statistical releases at: http://www.statistiques.public.lu/fr/agenda/calendrier-diffusion/index.html. On-line access to Statec’s databases and those of other jurisdictions is available to all users simultaneously at the time of release through the Statistics Portal of Luxembourg. Key publicly accessible websites for macroeconomic data and analysis are: Statistics Portal of Luxembourg http://www.statistiques.public.lu/fr/ Statec http://www.statec.public.lu/fr/index.html Central Bank of Luxembourg http://www.bcl.lu/en/index.php Ministry of Finance http://www.mf.public.lu/ National Accounts: Luxembourg avails itself of the SDDS special flexibility for the timeliness of the national accounts, and generally disseminates national accounts data not later than four months after the reference period (the SDDS timeliness requirement for the national accounts is three months). Reduction of the reporting lag would aid surveillance. | |
| II. Data Standards and Quality | |
| Subscriber to the Fund’s Special Data Dissemination Standard (SDDS) since May 12, 2006. Uses SDDS flexibility options on the timeliness of national accounts and analytical accounts of the central bank. | No data ROSC is available. |
| I. Assessment of Data Adequacy for Surveillance | |
|---|---|
| General: Data provision is adequate for surveillance. The Central Service for Statistics and Economic Studies (Statec) regularly publishes a full range of economic and financial data and provides an advance release calendar for main statistical releases at: http://www.statistiques.public.lu/fr/agenda/calendrier-diffusion/index.html. On-line access to Statec’s databases and those of other jurisdictions is available to all users simultaneously at the time of release through the Statistics Portal of Luxembourg. Key publicly accessible websites for macroeconomic data and analysis are: Statistics Portal of Luxembourg http://www.statistiques.public.lu/fr/ Statec http://www.statec.public.lu/fr/index.html Central Bank of Luxembourg http://www.bcl.lu/en/index.php Ministry of Finance http://www.mf.public.lu/ National Accounts: Luxembourg avails itself of the SDDS special flexibility for the timeliness of the national accounts, and generally disseminates national accounts data not later than four months after the reference period (the SDDS timeliness requirement for the national accounts is three months). Reduction of the reporting lag would aid surveillance. | |
| II. Data Standards and Quality | |
| Subscriber to the Fund’s Special Data Dissemination Standard (SDDS) since May 12, 2006. Uses SDDS flexibility options on the timeliness of national accounts and analytical accounts of the central bank. | No data ROSC is available. |
Luxembourg: Table of Common Indicators Required for Surveillance
(As of May 31, 2012)
Including reserve assets that are pledged or otherwise encumbered.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Luxembourg: Table of Common Indicators Required for Surveillance
(As of May 31, 2012)
| Date of Latest Observation | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 05/31/12 | 5/31/12 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 04/30/12 | 05/23/12 | M | M | M |
| Reserve/Base Money | 04/30/12 | 05/23/12 | M | M | M |
| Broad Money | 04/30/12 | 05/23/12 | M | M | M |
| Central Bank Balance Sheet | 04/30/12 | 05/23/12 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 04/30/12 | 05/23/12 | M | M | M |
| Interest Rates2 | 05/31/12 | 05/31/12 | D | D | D |
| Consumer Price Index | 04/30/12 | 05/09/12 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 2011 Q4 | 04/04/12 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | 2012 Q1 | 04/27/12 | Q | Q | Q |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 2011 Q4 | 04/04/12 | Q | Q | Q |
| External Current Account Balance | 2011 Q4 | 04/08/12 | Q | Q | Q |
| Exports and Imports of Goods | 03/31/12 | 05/25/12 | M | M | M |
| GDP/GNP | 2011 Q4 | 04/04/12 | Q | Q | Q |
| Gross External Debt | 03/12/12 | 04/08/12 | Q | Q | Q |
| International Investment Position6 | 2011 Q4 | 03/30/12 | Q | Q | Q |
Including reserve assets that are pledged or otherwise encumbered.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Luxembourg: Table of Common Indicators Required for Surveillance
(As of May 31, 2012)
| Date of Latest Observation | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 05/31/12 | 5/31/12 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 04/30/12 | 05/23/12 | M | M | M |
| Reserve/Base Money | 04/30/12 | 05/23/12 | M | M | M |
| Broad Money | 04/30/12 | 05/23/12 | M | M | M |
| Central Bank Balance Sheet | 04/30/12 | 05/23/12 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 04/30/12 | 05/23/12 | M | M | M |
| Interest Rates2 | 05/31/12 | 05/31/12 | D | D | D |
| Consumer Price Index | 04/30/12 | 05/09/12 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 2011 Q4 | 04/04/12 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | 2012 Q1 | 04/27/12 | Q | Q | Q |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 2011 Q4 | 04/04/12 | Q | Q | Q |
| External Current Account Balance | 2011 Q4 | 04/08/12 | Q | Q | Q |
| Exports and Imports of Goods | 03/31/12 | 05/25/12 | M | M | M |
| GDP/GNP | 2011 Q4 | 04/04/12 | Q | Q | Q |
| Gross External Debt | 03/12/12 | 04/08/12 | Q | Q | Q |
| International Investment Position6 | 2011 Q4 | 03/30/12 | Q | Q | Q |
Including reserve assets that are pledged or otherwise encumbered.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).