The ‘Global Resilience Index’ is designed to help business leaders assess a country’s risks and resilience
FM Global, one of the biggest mutual insurance companies, has released their 2019 Global Resilience Index. This index ranks 130 countries and territories by the resilience of their business environments, based on economic factors, risk quality and supply chains. Once again, Luxembourg’s steady economic growth has been rewarded, this year with a 7th place on the Global Resilience Index.
Luxembourg – A risk free economic environment
Over the past decade, Luxembourg consistently ranked in the global top 10, due to the quality of various factors that companies take into account when they assess risks in a country they plan to do business in.
- A stable political institution plays an important role in the reliability of a country’s economy. In that sense, Luxembourg’s solid and reliable government is one of the reasons for the Grand Duchy’s high ranking.
- Technology and Innovation are further factors responsible for Luxembourg’s high ranking. Generally up-to-date, Luxembourg’s technology is constantly evolving, the most recent example being the Grand Duchy’s engagement in the introduction of 5G technology. In addition, Luxembourg’s Space programme is one of the most established in the world, setting records across Europe and globally.
- Finally, Investment in transport infrastructure has a huge potential in boosting growth and jobs. In that sense, Luxembourg has some of the best infrastructures in air, rail, and road transportation compared to the rest of Europe. In addition, network infrastructures in Luxembourg are given a high importance, and whether it is fiber optics, satellites or 5G technology, Luxembourg’s infrastructure will not disappoint.
In the three main categories of the Global Resilience Index, Luxembourg placed as follows:
- Economy: Considering productivity (84.8), political risk (93.6), intensity of oil economy (64.9) and the level of urbanization (84.6), Luxembourg ranks 2nd globally (91.3).
- Risk Quality: On the global level, Luxembourg ranks 18th (79.9), based on the assessment of natural dangers (95.3), the potential of the improvement of handling risks in case of natural dangers (62), the risk of fire (72.5) and cyber risks (50.3).
- Supply Chain: Evaluating factors, including control of corruption (93), quality of infrastructures (83.6), enterprise governance (64.6) and the visibility of supply chains (69.7), Luxembourg was ranked 23rd globally in this category.
In this year’s FM Global Resilience Index, Luxembourg ranks 7th, with an overall score of 94.0. Germany is in 4th place (96.6), Belgium in 19th place (86.8), and France in 14th place (90.1).
(article written by the editorial team of the portal www.luxembourg.lu)
Source: http://luxembourg.public.lu/en/actualites/2019/07/25-fm-global/index.html
