The message from PWC’s managing partner is politically correct, but it’s also very clear for the government. Whilst congratulates the leaders who come to office at the end of 2023 on the measures they have taken, he also “invites” them to actively spread the word.
“This positive trend must continue, with no room for complacency, and it is now crucial that the positive steps taken are marketed as actively as possible so that investors and stakeholders around the world are fully aware of them. As local subsidiaries of multinational groups face external factors that they cannot fully control, close and trusted relationships with head offices and decision-makers in key trading partner countries are more critical than ever.”
“At a time when the European economy is about to experience a period of potentially slow and prolonged growth, Luxembourg--with its internationally renowned financial centre and its solid and robust industrial heritage--can stand out and become a shining mark of prosperity, technological innovation, adaptation and climate resilience,” he writes in the preface to the , published every two years to take the temperature of 4,701 CEOs from all over the world, including 58 from Luxembourg.
“Luxembourg CEOs showed a strong awareness of the fact that they need to adapt to a changing world to maintain the viability of their companies in the years to come (only 38% of them think that their companies will remain viable for the next ten years if they continue on their current trajectory, compared with 51% in 2023 and 55% worldwide),” adds PWC Luxembourg’s clients and markets leader, .
“However, local business challenges have eased, and the pro-business policies introduced by the new government should reinforce Luxembourg’s dynamism.”
Luxembourg CEOs are well-positioned to champion the transformation of their businesses and become key centres of excellence and value creation.
Luxembourg CEOs acknowledged that the challenges of public-private coordination have improved considerably since the last edition of the report, says Liégeois. But they also stressed the need for business reinvention in the face of a global landscape of economic unpredictability, geopolitical tensions and climate challenges.
The survey showed good results in the implementation of AI, but these solutions are still in their infancy and their potential has yet to be fully realised.
In addition, there is room for improvement regarding climate-friendly investments, which remain a key element of future business success, particularly as Europe advances its sustainability agenda.
Finally, Liégeois, who outlined the report at the Journée de l’Économie, “Luxembourg CEOs are well-positioned to champion the transformation of their businesses and become key centres of excellence and value creation, for example, in areas such as innovative delivery models or business solutions, digital managed services, project and portfolio management, marketing, human resources, data storage or financial anti-crime operations.”
Top ten points of the CEO Survey
1. Significant improvement in the business climate in Luxembourg: Luxembourg CEOs report a significant improvement in business conditions since 2023, with a decrease in concerns about working with regulators (85% in 2023 versus 41% in 2025) and tax competitiveness (46% in 2023 versus 12% in 2025). This shift is attributed to the pro-business policies of the new government.
2. More cautious long-term viability outlook in Luxembourg: Only 38% of Luxembourg CEOs believe that their companies will remain economically viable for more than ten years if they continue on their current trajectory, compared to 55% of CEOs globally. This level of confidence is also lower than in other financial centres such as Ireland and Switzerland. For CEOs in the financial sector, the figure is even just 17% compared with 50% for all other business sectors.
3. High presence of subsidiaries in Luxembourg: Almost half (48%) of Luxembourg CEOs run local subsidiaries of large companies, which limits their strategic autonomy. The global average is just 21%. This unique structure partly explains Luxembourg companies’ greater caution when it comes to strategic transformation.
4. Global threats outweigh local concerns in Luxembourg: Thanks to government action, the main threats perceived by Luxembourg CEOs now come from global trends, notably the “low availability of workers with key skills,” which is cited by 36% of them, compared with 23% globally. Luxembourg CEOs generally consider themselves more exposed to most categories of risk than the global average.
5. Short-term optimism despite a gloomier long-term view in Luxembourg: 50% of Luxembourg CEOs are very or extremely confident in their company’s growth prospects over the next three years, an improvement on 2023. This short-term confidence appears to be in line with GDP growth forecasts. The report also indicates overall high medium-term confidence among global and European CEOs.
6. More concrete AI integration plans in Luxembourg: Luxembourg CEOs have a clearer idea of how they want to integrate AI into their businesses than most global CEOs. On average, 55% of Luxembourg CEOs have specific areas in mind for AI deployment (such as technology platforms), compared to just 35% globally. The GenAI adoption rate in Luxembourg is 76% over the past 12 months, slightly below the global average of 83%.
7. Climate investments below the global average in Luxembourg: Only 76% of Luxembourg companies have made climate-friendly investments over the past five years, compared with 81% of global companies over the past 12 months in 2024. Luxembourg CEOs also perceive a less positive (or even negative) impact of these investments on their profits compared to the global average.
8. Hesitancy to diversify activities in Luxembourg: Only 29% of Luxembourg companies have ventured into new sectors over the past five years, compared with a global average of 38%. This caution is even more marked in the financial services sector (only 17%). Similarly, only 19% of Luxembourg CEOs have targeted new customer bases, compared with 32% globally.
9. Higher headcount growth projections in Luxembourg: Luxembourg CEOs plan to increase their headcount by 3.9% over the next year, exceeding the global average of 3.7%. Twelve percent of Luxembourg CEOs expect to increase hiring. This outlook contrasts sharply with forecasts of headcount reductions in other European countries such as Germany.
10, Positive impact of recent government policies on confidence: The pro-business policies introduced by the government that took power at the end of 2023 have significantly improved CEO sentiment and reduced concerns about local challenges such as taxation and regulation. This positive development is a key factor in the increased confidence of business leaders in Luxembourg.
This article was originally published in .