Fitch affirms Luxembourg AAA rating

009_9827_Panorama1_tn

Credit ratings agency Fitch Ratings has affirmed Luxembourg’s AAA rating with a stable outlook, following Standard & Poor’s decision to uphold the Grand Duchy’s triple A status in December.

Fitch describes Luxembourg as a “very high-income, ultra-open economy with favourable macroeconomic dynamics compared to other eurozone countries,” saying that the Grand Duchy has shown one of the strongest recoveries from the eurozone crisis, with a stronger GDP than the European average despite a slow-down in growth.

 Fitch also said that it expects “economic policy continuity” from the new government, as well as a “comprehensive consolidation strategy” for the 2015 budget. For 2014, the agency predicts growth of 1.8 percent, which is expected to shrink to 1.4 percent in 2015. Inflation should remain below 2 percent until 2015 according to Fitch.