Italy 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 Italy at 72/100. 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
70
Economic strength
Luxembourg leads
88
72
Political stability
Luxembourg leads
92
68
Business climate
Luxembourg leads
88
72
Financial maturity
Luxembourg leads
85
72
Growth outlook
Italy leads
68
Macro snapshot
2,255
GDP (USD bn)
+2169.5 bn
86
0.8%
GDP growth (%)
-0.7 pp
1.5%
$38,160
GDP per capita (USD)
-94210.0
$132,370
2.2%
Inflation (%)
-0.3 pp
2.5%
1.5%
FDI (% of GDP)
-24.0 pp
25.5%
141%
Public debt (% of GDP)
+112.0 pp
29%
59
Population (M)
+58.3M
0.7
Italy: strong sectors
- Fashion & Luxury5.2% of GDP82
- Manufacturing16.5% of GDP78
- Tourism13.2% of GDP78
- Agriculture & Food2.2% 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: Italy or Luxembourg?
Our composite investment index gives Italy a score of 72/100 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 Italy a safer market than Luxembourg?
Risk classification puts Italy as moderate (Growing economy with manageable risks - suitable for diversified portfolios) and Luxembourg as safe (Strong fundamentals, stable governance, favorable investment climate).
Which has higher GDP growth: Italy or Luxembourg?
Italy is currently growing at 0.8% per year, vs 1.5% for Luxembourg. Luxembourg has the faster headline growth rate today.