Luxembourg Finance Sector: Is It Leading Value Creation?
A recent Luxembourg Times report highlights the sector’s impressive contribution to the national economy, and the numbers speak for themselves:
The financial sector’s value added per employee is about double that of any other sector in Luxembourg, generating an average of €236,400 in gross value added in 2024.
Economic impact:
• Finance accounts for 14% of jobs and about 25% of total economic value added
• Every job in finance creates 1.1 additional jobs elsewhere in the economy
Where does the value come from?
51.8% – Banking
30.8% – Insurance
13.2% – Fund Industry
4.2% – Consulting and Legal
Tax and public finance contribution:
The financial sector’s corporate tax contribution more than doubled from €3.4 billion in 2014 to €7.2 billion in 2024 and it now represents:
~64% of corporate income tax revenue
~80% of wealth tax revenue
Why it matters:
Luxembourg’s finance workers generate higher output per person than any other sector—making them a key driver in a nation that ranks #1 globally for GDP per capita.
As global competition, decentralization, and open-source innovation reshape the industry, how can Luxembourg’s finance sector future-proof itself against global shifts?
Could open, modular financial infrastructure be part of the answer?
