The National Productivity Council submitted its annual report to Lex Delles (06.02.2026)

On 6 February 2026, the National Productivity Board (CNP) presented its 2024-2025 Annual Report to Lex Delles, Minister of the Economy, SMEs, Energy, and Tourism. The report underscores the crucial role of business productivity in advancing real wages, ensuring the sustainability of the socio-economic model, and achieving the ecological transition. Serge Allegrezza, President of the CNP, emphasized that productivity lies at the heart of the country’s competitiveness.

The CNP’s annual report, titled "La productivité au coeur de la compétitivité et de la prospérité" highlights the stagnation of labor productivity in Luxembourg over the past decade. However, this overall trend conceals significant disparities among economic sectors. The CNP also assesses resource and energy productivity to evaluate—from a sustainable development perspective—the value created per unit of resource or energy used in production. Based on data from the past ten years, Luxembourg has yet to decouple its raw material consumption from economic growth. Conversely, energy productivity has improved. For the first time, 25% of the electricity consumed in Luxembourg was produced domestically from renewable sources, though further progress is needed. Consequently, despite a gradual decline, the country maintains high greenhouse gas emissions, primarily due to fuel sales.

In its latest annual report, the CNP issued a list of recommendations to boost productivity growth in Luxembourg. These recommendations span various areas, including innovation, business policy, and artificial intelligence. This edition of the report tracks these recommendations and analyzes the measures taken by the government since the publication of the previous annual report.

Three Applied Research Studies

As in previous years, the report includes applied research studies on productivity.

The first study, conducted by the secretariat of the CNP, examines the impact of Luxembourg’s economic structure—marked by a strong financial sector presence—on productivity levels and trends. The findings indicate that this structure contributes to high, but stagnant productivity.

The second study, led by STATEC Research asbl, traces the evolution of total factor productivity (TFP), based on the latest update of the LuxKLEMS project. Luxembourg has seen modest TFP growth, largely driven by service industries. The data also help identify the reasons behind this trend, namely efficiency and technological change. The results suggest that this slowdown is linked to the effects of technological change. Additionally, the study aims to explore the relationship between TFP evolution and investment in information and communication technology (ICT) across different economic sectors.

The third study, also conducted by STATEC Research asbl, investigates the link between investment in intangible capital and TFP growth. The findings indicate that investment in intangible capital—particularly in branding, organizational capital, and training—can lead to TFP growth.

The 2024-2025 Annual Report of the National Productivity Board will be notified to the European Commission and submitted to the Economic and Social Council for review.

This year, the CNP also launched a new website: https://productivite.public.lu/fr.html/. The CNP’s annual report and news updates are available for consultation on the site.

Issued by the Ministry of the Economy and the National Productivity Council.

The original press release in French has been machine translated into English.