The COVID-19 pandemic has forced most governments around the world to take preventive restrictive measures to help reduce the spread of the virus and avoid the collapse of health systems. However, this was not without a severe negative economic impact.

 

The businesses that have so far survived the current Covid-19 crisis are the ones that have been able to adapt quickly to the situation and to adjust their business model to overcome such an unprecedented and unstable context. The recovery is still ongoing but we are now able to learn some lessons.

 

Digitization, although already underway in many organizations, has proved to be essential and been accelerated to meet the urgent needs that the situation has suddenly generated.

 

Innovation has been at the heart of the recovery strategy: the most innovative organizations have shown a better resilience in navigating the “New Normal”.

 

Luxembourg has focused strongly on both digitalization and innovation already in the past years. Its response to the crisis has been quick and strong, taking immediate measures to protect the economy and prepare for an expected worldwide long economic recovery.

 

Two rating Agencies recently confirmed that the Covid-19 pandemic did not modify the country’s ‘AAA’ credit fundamentals. With strong governance indicators and sound public finances, the economic outlook for the country is therefore encouraging and shows that Luxembourg remains an attractive destination for investment.

 

Living up to its reputation as a first mover, Luxembourg was the first European country worldwide to launch a sustainability bond framework, on September 2, 2020. The First Green Bond emitted under that framework successfully landed with a demand quickly exceeding the initial offer as investors required over eight times the amount Luxembourg raised.

 

The Grand Duchy is moving forward, addressing the economic sectors of the future such as Smart Mobility, Health Technologies or Space to name a few. From a partnership between Silicon Valley startups and the University of Luxembourg on autonomous driving technology to the launch of the first-high performance microsatellite produced and assembled in Luxembourg and the upcoming creation of the European Space Resources innovation Centre based in Luxembourg by the end of 2020: Luxembourg will make it happen!

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