Luxembourg: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg

Download or read book Luxembourg: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg written by International Monetary and published by International Monetary Fund. This book was released on 2021-05-25 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economic impact of the pandemic has been much milder than initially foreseen, still the outlook remains challenging. The economy, dominated by financial services, adapted quickly to telework and benefited from unprecedented policy support, both domestically and globally. Uncertainty is unusually high, dominated by the virus dynamics in the short term, with downside risks relating to a sharp rise in global risk premia, deglobalization trends, and changes in international taxation.