Luxembourg vs Panama
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 Panama at 65/100. 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
88
Economic strength
Luxembourg leads
65
92
Political stability
Luxembourg leads
58
88
Business climate
Luxembourg leads
70
85
Financial maturity
Luxembourg leads
68
68
Growth outlook
Luxembourg leads
58
Macro snapshot
86
GDP (USD bn)
+3.5 bn
82
1.5%
GDP growth (%)
-2.0 pp
3.5%
$132,370
GDP per capita (USD)
+113870.0
$18,500
2.5%
Inflation (%)
+0.5 pp
2.0%
25.5%
FDI (% of GDP)
+20.0 pp
5.5%
29%
Public debt (% of GDP)
-26.5 pp
55%
0.7
Population (M)
-3.7M
4.4
Luxembourg: strong sectors
- Financial Services26.5% of GDP90
- Fund Management18.2% of GDP88
- Space Technology1.8% of GDP78
- Steel & Manufacturing3.5% of GDP72
Panama: strong sectors
- Logistics & Canal18.0% of GDP78
- Financial Services14.0% of GDP70
- Tourism8.0% of GDP62
- Construction10.0% of GDP58
Frequently asked
Which is better for investment: Luxembourg or Panama?
Our composite investment index gives Luxembourg a score of 86/100 and Panama a score of 65/100. Luxembourg ranks higher overall, but the right answer depends on your sector and risk tolerance. See the category breakdown above.
Is Luxembourg a safer market than Panama?
Risk classification puts Luxembourg as safe (Strong fundamentals, stable governance, favorable investment climate) and Panama as moderate (Growing economy with manageable risks - suitable for diversified portfolios).
Which has higher GDP growth: Luxembourg or Panama?
Luxembourg is currently growing at 1.5% per year, vs 3.5% for Panama. Panama has the faster headline growth rate today.