Luxembourg: Selected Issues

June 21, 1996

Summary

This Selected Issues paper analyzes the effect of aging on pension expenditure in Luxembourg. The paper highlights that Luxembourg is in a relatively favorable position because its GDP growth has been well above the average for industrialized countries in the post-war period. Moreover, growth has been unconstrained in that much of it has been based on the influx of foreign capital and labor. The paper provides some illustrative simulations of pension expenditure in Luxembourg, and describes the demographic developments. After reviewing methodological issues, simulations of pension expenditure until 2050 are also presented.

Subject: Aging, Corporate income tax, Employment, Expenditure, Income, Labor, Pension spending, Pensions, Population and demographics, Taxes

Keywords: advantage Luxembourg, Aging, Corporate income tax, CR, Employment, Europe, GDP growth, investment funds, ISCR, labor force, labor market, Luxembourg economy, Luxembourg financial center, Pension spending, pension system, Pensions, real GDP, tax rate, withholding tax

Pages:
48
Volume:
1996
DOI:
https://doi.org/10.5089/9781451824285.002
Issue:
048
Series:
Country Report No. 1996/048
Stock No:
1LUXEA0021996
ISBN:
9781451824285
ISSN:
1934-7685

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Notes

This report was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. In releasing this document for public use, confidential material may have been removed at the request of the member.

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