At the start of July 2017, the International Chamber of Commerce (ICC) published a new edition of its Open Markets Index (OMI) study. The study makes it possible to compare the openness to international trade of 75 countries worldwide. The OMI has four main areas of focus which are further divided into 23 indicators in order to cover all openness factors.
The four components are:
- observed openness to trade;
- trade policy;
- openness to foreign direct investment;
- infrastructure enabling international trade – connectedness.
On a scale of 1 (least open) to 6 (most open), Luxembourg has excellent scores in the four areas of focus: 4.9 in 'observed openness to trade'; 4.8 in 'trade policy'; 5.3 in 'openness to foreign direct investment' and 5.6 in 'infrastructure enabling international trade - connectedness'!
Singapore is at the top of the table with a score of 5.6, followed by Hong Kong (5.5) with Luxembourg (5.0) in 3rdplace.
The Grand Duchy - the most open economy in the EU
The Luxembourg economy is the only European economy to be ranked in the first category of openness. Twelve other Member States including the Netherlands and Belgium follow in the second category, in other words the countries with higher than average openness. Finally, we can see that the Grand Duchy is well ahead of the economies of the G20 countries with respect to the criterion of openness, as only Canada has managed to position itself in the top 20.
(Article written by the editorial team of the luxembourg.lu portal / Source: ICC Open Market Index 2017)