The National Productivity Board presented its annual report to Minister Lex Delles

On 7 March 2025, the National Productivity Board (CNP) submitted its 2023–2024 annual report to Lex Delles, Minister of the Economy, SMEs, Energy, and Tourism. The minister emphasized the crucial importance of productivity for strengthening business competitiveness, supporting real wage growth, ensuring the sustainability of the socio-economic model, and successfully achieving the ecological transition. Serge Allegrezza, President of the CNP, highlighted that productivity lies at the heart of the country’s competitiveness.

The CNP’s annual report, titled “Revigorer la productivité – éléments pour un plan d'action,” reveals that labor productivity in Luxembourg has stagnated for more than a decade. However, this overall trend masks significant disparities between economic sectors. The CNP also analyzes resource and energy productivity from a sustainable development perspective. Over the past ten years, Luxembourg has not yet succeeded in decoupling its raw material consumption from economic growth. Nevertheless, energy productivity has improved, even though the share of renewable energy remains limited. Consequently, although emissions have decreased in recent years, the country still maintains a high level of greenhouse gas emissions relative to its economic activity.

The annual report goes beyond macroeconomic data analysis and also proposes measures to revive productivity growth. These recommendations cover various areas, ranging from making productivity a national political priority to stimulating innovation, fostering business development, and implementing a national plan to promote the adoption of artificial intelligence across all economic sectors.

Applied Research Studies
As in previous years, the report includes applied research studies on productivity, carried out by Statec Research asbl, on behalf of the CNP.

• The first study examines total factor productivity (TFP) in Luxembourg, based on a new company-level database. It shows that firms with high TFP also have higher labor productivity and tend to be larger in terms of employment, capital, and value added.
• The second study presents updated results from the LuxKLEMS project, illustrating the evolution of sectoral productivity indicators from 1995 to 2022. The findings show that labor productivity growth in the services sector differs significantly from that in manufacturing.
• The third study proposes decoupling indicators for 40 OECD and non-OECD countries from 1996 to 2018, measuring types of decoupling between economic growth and reductions in greenhouse gas (GHG) emissions. It uses a “consumption-based” approach that accounts for GHG emissions from imported goods (excluding emissions from exported goods). Econometric analyses suggest that non-market policies, such as quotas, appear more effective in promoting decoupling than market-based mechanisms.

The NPC’s 2023–2024 annual report will be notified to the European Commission and submitted to the Economic and Social Council for its opinion.

The original press release issued by the Ministry of the Economy and the National Productivity Board has been translated with the help of an AI tool.