Germany vs Luxembourg
A data-driven side-by-side: investment score, economy, business climate, political stability, and tax, to help you decide where to invest, incorporate, or relocate.
Overall: Luxembourg ranks higher
Luxembourg scores 86/100 on our composite investment index, ahead of Germany at 85/100. This blends economic strength, political stability, business climate, financial maturity, and growth outlook. Read the breakdown below to see where each country actually leads.
Category breakdown
82
Economic strength
Luxembourg leads
88
90
Political stability
Luxembourg leads
92
88
Business climate
88
86
Financial maturity
Germany leads
85
62
Growth outlook
Luxembourg leads
68
Macro snapshot
4,460
GDP (USD bn)
+4374.5 bn
86
0.3%
GDP growth (%)
-1.2 pp
1.5%
$52,000
GDP per capita (USD)
-80370.0
$132,370
2.9%
Inflation (%)
+0.4 pp
2.5%
1.8%
FDI (% of GDP)
-23.7 pp
25.5%
65%
Public debt (% of GDP)
+36.5 pp
29%
84
Population (M)
+83.3M
0.7
Germany: strong sectors
- Manufacturing20.0% of GDP90
- Automotive6.0% of GDP82
- Technology7.0% of GDP80
- Energy4.0% of GDP72
Luxembourg: strong sectors
- Financial Services26.5% of GDP90
- Fund Management18.2% of GDP88
- Space Technology1.8% of GDP78
- Steel & Manufacturing3.5% of GDP72
Frequently asked
Which is better for investment: Germany or Luxembourg?
Our composite investment index gives Germany a score of 85/100 and Luxembourg a score of 86/100. Luxembourg ranks higher overall, but the right answer depends on your sector and risk tolerance. See the category breakdown above.
Is Germany a safer market than Luxembourg?
Risk classification puts Germany as safe (Strong fundamentals, stable governance, favorable investment climate) and Luxembourg as safe (Strong fundamentals, stable governance, favorable investment climate).
Which has higher GDP growth: Germany or Luxembourg?
Germany is currently growing at 0.3% per year, vs 1.5% for Luxembourg. Luxembourg has the faster headline growth rate today.