London-based leading commercial think-tank Z/Yen and the China Development Institute publish The Global Financial Centres Index (GFCI) as a reference for policy and investment decisions. New York tops the global ranking, followed by London, Tokyo, Shanghai and Singapore. Luxembourg is in 18th place globally, and ranks 7th in Western Europe.
World leader in insurance
When analysing the ranking by areas of competitiveness – banking, investment management, insurance, professional services, and government and regulatory – New York is the leader in all areas but one: insurance, where it ranks second after world leader Luxembourg. Luxembourg also ranks third in the world in the area of government and regulatory, and 13th in investment management.
4th in human capital, 14th in financial sector development
The GFCI ranking is based on five main areas of competitiveness:
- Business environment: political stability and rule of law, institutional and regulatory environment, macroeconomic environment, tax and cost competitiveness
- Human capital: availability of skilled staff, flexible labour market, education and development, quality of life
- Infrastructure: built infrastructure, ICT infrastructure, transport infrastructure, sustainable development
- Reputation: city brand and appeal, level of innovation, attractiveness and cultural diversity, comparative positioning with other centres
- Financial sector development: depth and breadth of industry clusters, availability of capital, market liquidity, economic output
Luxembourg stands out in particular in the field of human resources, where it ranks 4th in the world. The country is also in 14th place worldwide in the field of financial sector development.
Photo: © Luxinnovation/Sabino Parente