Luxembourg Regulatory Quality
Regulatory Quality RQ.EST
Luxembourg's regulatory quality was 2.03 in 2025, ranked 2nd globally. This represents a 5.3% increase from 2024. Data from World Bank WGI, covering 1996–2025.
Overview
Luxembourg's regulatory quality stood at 2.03 in 2025, a rise of +0.10 from 2023. Based on recent trends, this figure is projected to reach 2.03 by 2025. Luxembourg ranked 2nd globally.
Luxembourg’s regulatory quality score has risen steadily over the 26‑year series, moving from 1.76 in 1996 to a peak of 2.03 in 2025, the highest value recorded for the country and the second‑best globally. The low point of 1.49 in 1998 marked a trough from which the economy began a gradual improvement, reflecting reforms that have streamlined business procedures and enhanced legal predictability. By 2025 Luxembourg’s score of 2.03 places it just above Denmark (2.02) and well ahead of Australia (1.96), though still below Singapore’s 2.35, underscoring its competitive regulatory environment among advanced economies. The upward trajectory suggests that continued emphasis on transparent rule‑making and efficient enforcement could sustain the current momentum, while any reversal in fiscal discipline or EU‑wide regulatory shifts might temper future gains.
Data & projection
| Year | Regulatory Quality | YoY change | Rank |
|---|---|---|---|
| 2026* trend | 2.08 | - | - |
| 2025* trend | 2.03 | - | - |
| 2025 | 2.03 | +0.10 | #2 |
| 2023 | 1.93 | +0.10 | #3 |
| 2022 | 1.83 | −0.07 | #5 |
| 2021 | 1.91 | +0.07 | #2 |
| 2020 | 1.84 | +0.15 | #4 |
| 2019 | 1.69 | −0.06 | #11 |
| 2018 | 1.75 | +0.07 | #12 |
| 2017 | 1.68 | −0.03 | #14 |
| 2016 | 1.71 | +0.06 | #14 |
| 2015 | 1.65 | +0.02 | #16 |
| 2014 | 1.63 | −0.15 | #17 |
| 2013 | 1.77 | +0.01 | #8 |
| 2012 | 1.76 | −0.10 | #8 |
| 2011 | 1.86 | +0.19 | #4 |
| 2010 | 1.67 | +0.03 | #10 |
Detected Pattern
Analysis
Luxembourg matched the Export Boom Cycle pattern in 2021. Historically, 71% of countries showing this pattern (546 out of 768) saw regulatory quality improve within 24 months. View full analysis →
Frequently Asked Questions
Luxembourg's regulatory quality was 2.03 in 2025. Ranked 2nd globally. This represents a 5.3% increase from the previous year.
Luxembourg's regulatory quality peaked at 2.03 in 2025.
The lowest regulatory quality in Luxembourg was 1.49 in 1998.
Luxembourg ranks 2nd globally in regulatory quality as of 2025.
The World Bank indicator code is RQ.EST. Data sourced from World Bank WGI.
Luxembourg's regulatory quality is projected to reach 2.03 by 2025 based on trend extrapolation.
The regulatory quality of Luxembourg in 2025 was 2.03. This ranks 2nd in the world.
Cite this page
@misc{historysaid_luxembourg_regulatory-quality,
title = {Luxembourg Regulatory Quality},
url = {https://historysaid.com/luxembourg/regulatory-quality/},
publisher = {HistorySaid},
year = {2026}
}