{
  "title": "Luxembourg: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg",
  "publication": "IMF Staff Country Reports, May 10, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2019/05/13/luxembourg-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-46886",
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  "summary": "This 2019 Article IV Consultation discusses that Luxembourg’s growth prospects remain favorable, but downside risks arise from a weaker-than-expected global growth, a disorderly Brexit, changes in international tax rules, and a sharp tightening of global financial conditions.",
  "sections": [
    {
      "heading": "Growth outlook and risks",
      "content": "- Growth prospects remain favorable.\n- Downside external risks identified:\n  - weaker-than-expected global growth\n  - a disorderly Brexit\n  - changes in international tax rules\n  - a sharp tightening of global financial conditions\n- Domestic risks identified:\n  - rising real estate prices could exacerbate already elevated household indebtedness\n  - rising real estate prices could increase affordability challenges"
    },
    {
      "heading": "Fiscal policy and buffers",
      "content": "- Policy recommendation: aim to maintain a strong fiscal position and preserve buffers.\n- Assessment of government plans:\n  - The government’s plans are described as appropriate.\n  - The plans will result in a slightly expansionary budget in 2019.\n  - The cost and timeline of the planned measures over the medium term remain to be determined.\n- Given the risks ahead, including from potential changes in international taxation, Luxembourg should build on its strong fiscal record and preserve sizeable buffers."
    },
    {
      "heading": "Structural policies and pension reform",
      "content": "- Structural policy focus: address key gaps in the economy.\n- Pension system:\n  - Further reforms of the pension system are needed to ensure its sustainability.\n  - Reforms should consider intergenerational equity and trade-offs of various reform options."
    },
    {
      "heading": "Subject areas and keywords (as listed)",
      "content": "- Subject: Banking, Corporate income tax, Expenditure, Financial institutions, Mutual funds, Pension spending, Public debt, Revenue administration, Taxes\n- Keywords: Corporate income tax, CR, Europe, Global, government, IMF staff estimate, IMF's article, increase affordability challenge, IP box regime, ISCR, liability positions vis-à-vis nonresident, Luxembourg economy, Luxemburg, Mutual funds, Pension spending, Q4\n\n---\n\n Content in this bundle\n\n- 1luxea2019001\n  - 1luxea2019001 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1luxea2019001 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: May 10, 2019",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781498314510.002",
    "Growth prospects remain favorable.",
    "Downside external risks identified:",
    "Domestic risks identified:",
    "Policy recommendation: aim to maintain a strong fiscal position and preserve buffers.",
    "Assessment of government plans:",
    "Given the risks ahead, including from potential changes in international taxation, Luxembourg should build on its strong fiscal record and preserve sizeable buffers.",
    "Structural policy focus: address key gaps in the economy.",
    "Pension system:",
    "Subject: Banking, Corporate income tax, Expenditure, Financial institutions, Mutual funds, Pension spending, Public debt, Revenue administration, Taxes",
    "Keywords: Corporate income tax, CR, Europe, Global, government, IMF staff estimate, IMF's article, increase affordability challenge, IP box regime, ISCR, liability positions vis-à-vis nonresident, Luxembourg economy, Luxemburg, Mutual funds, Pension spending, Q4",
    "**1luxea2019001**"
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