Luxembourg, a dynamic financial centre
The consultancy firm Z/Yen and the Long Finance initiative have recently published the 15th edition of the competitiveness index of 83 interim financial centres around the world, the "Global financial centres index".
In a world that is becoming increasingly globalised and interconnected through information and communications technology, financial centres are facing more intense competition than other sectors. Financial services are at the heart of the global economy, acting as facilitators of international trade and foreign investment.
The study is based on two types of sources to assess the competitiveness of financial centres. On the one hand, the study uses 103 quantitative determinants and, on the other, a barometer of appreciation from online surveys of industry professionals. As defined in this study, competitiveness consists of five categories of indicators: the business environment (taxes, regulation, etc.), the development of the financial sector, infrastructure (cost and availability of offices, etc.), human resources (training, flexibility, etc.) and global determinants of competitiveness (perception of cities as a pleasant place to live, etc.).
New York, London and Hong Kong occupy the top three again in this new edition published in March 2014. Luxembourg's showing has increased by 11 points in the GFCI composite index and is therefore ranked 12th in the world, rising one position from the previous half-year rankings (September 2013). At a European level, Luxembourg ranks fifth behind London, Zurich, Geneva and Frankfurt. In the European Union, Luxembourg occupies third position.
Source: Long Finance & Z/Yen (mars 2014)
In this latest edition of the index, Luxembourg is also considered, along with Beijing, Milan and Moscow, as a "global emerging contender" financial centre.
Source: Long Finance & Z/Yen (mars 2014)
In the analysis of the volatility of financial centres, Luxembourg is considered a "dynamic" financial centre which is between the financial centres that are considered "stable" and "uncertain", i.e. a financial centre with the potential to progress in both directions.
Source: Long Finance & Z/Yen (mars 2014)
Finally, the qualitative online survey undertaken with financial professionals around the world shows that Luxembourg is in 9th place in the world, and the first in Europe, of financial centres to which respondents agree will play an increasing role in the coming years.
Please visit the website for more information or download the GFCI study here.
