IMF Staff Country Reports

Luxembourg: Selected Issues

Publication Date:

June 21, 1996

Summary:

This Selected Issues paper analyzes the effect of aging on pension expenditure in Luxembourg. The paper highlights that Luxembourg is in a relatively favorable position because its GDP growth has been well above the average for industrialized countries in the post-war period. Moreover, growth has been unconstrained in that much of it has been based on the influx of foreign capital and labor. The paper provides some illustrative simulations of pension expenditure in Luxembourg, and describes the demographic developments. After reviewing methodological issues, simulations of pension expenditure until 2050 are also presented.

Series:

Country Report No. 1996/048

Subject:

Aging Corporate income tax Employment Expenditure Income Labor Pension spending Pensions Population and demographics Taxes

Notes:

This report was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. In releasing this document for public use, confidential material may have been removed at the request of the member.