Vulnerability and opportunity
Archetype: Anchors. Absorb most shocks and take most of the upside. One of 42 nations with a similar pattern of results.
Well placed over 10 years: lower vulnerability, higher opportunity than the median nation.
Main drivers of vulnerability over 10 years: Energy supply shock, Chokepoint closure, AI diffusion shock. Highest exposure indicators: share of oil and gas use not met by domestic production; no coastline; trade in goods and services relative to gdp; internet users as a share of population; few months of imports covered by reserves; urban share of population; refugees hosted per head of population; services as a share of gdp.
Downside scenarios: load test
Change in Luxembourg’s capability index under each scenario at Standard Severe and current plans, largest fall first.
| Scenario | Exposure | Change | No response | Best practice | Rank shift | Bands lost | Weakest point |
|---|---|---|---|---|---|---|---|
| Pandemic S14 | High 0.93 | −0.80 | −1.43 | −0.62 | ▼ 3 | 20 | Biotechnology & Health Technologies 3.4 · Nascent |
| Energy supply shock S09 | High 0.90 | −0.79 | −1.16 | −0.50 | ▼ 3 | 18 | Resource Infrastructure 0.7 · Inception |
| Infrastructure collapse S12 | High 0.83 | −0.75 | −1.19 | −0.52 | ▼ 3 | 21 | Sensing, Timing & Navigation 0.6 · Inception |
| Chokepoint closure S05 | High 0.86 | −0.73 | −0.99 | −0.43 | ▼ 5 | 16 | Maritime Power 0 · Inception |
| AI diffusion shock S13 | High 0.92 | −0.65 | −1.25 | −0.54 | ▼ 1 | 18 | Semiconductors & Advanced Computing 0.4 · Inception |
| Geoeconomic confrontation S01 | High 0.70 | −0.53 | −0.97 | −0.43 | ▼ 1 | 15 | Semiconductors & Advanced Computing 0.7 · Inception |
| Global financial crisis S03 | High 0.75 | −0.48 | −1.11 | −0.47 | 0 | 14 | Economic Output & Productivity 10 · Transitional |
| Single-supplier cut-off S02 | High 0.66 | −0.42 | −0.66 | −0.29 | ▼ 1 | 8 | Semiconductors & Advanced Computing 0.6 · Inception |
| Hybrid campaign S06 | Medium 0.55 | −0.38 | −0.59 | −0.26 | ▼ 3 | 11 | Maritime Power 0 · Inception |
| Sovereign funding crisis S04 | Medium 0.41 | −0.26 | −0.59 | −0.25 | ▲ 1 | 7 | Energy Infrastructure 7.6 · Foundational |
| Legitimacy crisis S07 | Medium 0.51 | −0.25 | −0.51 | −0.22 | ▲ 1 | 6 | Force Generation & Mobilisation 3.9 · Nascent |
| Disaster in the core S10 | Medium 0.46 | −0.23 | −0.50 | −0.21 | ▲ 1 | 7 | Energy Infrastructure 7.5 · Foundational |
| Mass displacement S08 | Medium 0.55 | −0.22 | −0.48 | −0.21 | 0 | 4 | Water, Sanitation & Waste Infrastructure 12.8 · Established |
| Food and water shock S11 | Low 0.22 | −0.16 | −0.29 | −0.13 | ▲ 1 | 4 | Resource Infrastructure 2.1 · Inception |
Where each scenario lands
Change in each of the nine capability domains, in points. Darker is a larger fall.
| Scenario | CT | SI | NS | HC | II | GI | FS | PI | TI |
|---|---|---|---|---|---|---|---|---|---|
| Pandemic | −0.85 | −0.43 | −0.31 | −1.03 | −0.90 | −0.97 | −0.90 | −0.89 | −0.89 |
| Energy supply shock | −0.18 | −1.10 | −0.37 | −0.46 | −0.46 | −1.03 | −1.23 | −1.18 | −1.05 |
| Infrastructure collapse | −0.94 | −1.10 | −0.35 | −0.39 | −0.39 | −0.98 | −0.91 | −0.90 | −0.78 |
| Chokepoint closure | −0.10 | −1.24 | −0.86 | · | −0.56 | −1.19 | −0.48 | −0.95 | −1.23 |
| AI diffusion shock | −0.85 | −0.35 | −0.28 | −0.95 | −0.71 | −0.98 | −0.83 | −0.46 | −0.41 |
| Geoeconomic confrontation | −0.68 | −0.28 | −0.23 | · | −0.66 | −0.63 | −0.66 | −0.64 | −0.97 |
| Global financial crisis | −0.24 | −0.24 | −0.19 | −0.49 | −0.49 | −0.61 | −0.81 | −0.69 | −0.55 |
| Single-supplier cut-off | −0.81 | −0.22 | −0.25 | −0.35 | · | −0.71 | · | −0.72 | −0.72 |
| Hybrid campaign | −0.30 | −0.64 | −0.59 | · | −0.72 | −0.67 | · | −0.27 | −0.27 |
| Sovereign funding crisis | −0.03 | −0.22 | −0.11 | −0.30 | −0.27 | −0.38 | −0.46 | −0.27 | −0.31 |
| Legitimacy crisis | −0.18 | · | −0.33 | −0.18 | −0.43 | −0.60 | −0.49 | · | · |
| Disaster in the core | −0.02 | −0.47 | −0.13 | −0.35 | −0.16 | −0.39 | −0.21 | −0.16 | −0.16 |
| Mass displacement | · | −0.22 | −0.15 | −0.45 | −0.37 | −0.51 | −0.22 | −0.03 | · |
| Food and water shock | −0.02 | −0.18 | −0.07 | −0.22 | −0.21 | −0.22 | −0.10 | −0.18 | −0.20 |
Columns: CT Critical Technology · SI Strategic Infrastructure · NS National Security · HC Human Capital · II Information & Influence · GI Governance & Integrity · FS Financial Strength · PI Production & Innovation · TI Trade & Investment.
Upside scenarios: capture test
Net position in each upside scenario: what Luxembourg is ready to capture, less what it stands to lose.
| Scenario | Position | Net | Capture | Loss | Readiness | Rank | Binding capability |
|---|---|---|---|---|---|---|---|
| 100-day pandemic defence S24 ↗ | Gainer | +36.1 | 37.7 | 1.7 | 44 | 32 | Biotechnology & Health Technologies 5 · Nascent |
| Energy abundance S16 ↗ | Gainer | +34.2 | 34.3 | 0.1 | 34 | 29 | Energy Technologies 2.8 · Inception |
| Middle East settlement S21 ↗ | Gainer | +29.1 | 29.8 | 0.7 | 50 | 30 | Energy Infrastructure 8.1 · Foundational |
| Great-power détente S18 ↗ | Gainer | +25.4 | 35.5 | 10.1 | 58 | 20 | Diplomatic Statecraft & Global Networks 10 · Transitional |
| Superintelligence takeoff S15 ↗ | Mixed | +6.6 | 24.0 | 17.4 | 33 | 35 | Semiconductors & Advanced Computing 1.8 · Inception |
| Digital state leapfrog S23 ↗ | Mixed | +3.5 | 9.1 | 5.5 | 51 | 57 | Connectivity, Cyber & Trust Technologies 6.8 · Foundational |
| Emerging-market breakout S20 ↗ | Mixed | +1.9 | 10.4 | 8.5 | 52 | 145 | Energy Infrastructure 8.1 · Foundational |
| Biomedical breakthroughs S17 ↗ | Mixed | +1.4 | 19.3 | 17.9 | 45 | 81 | Biotechnology & Health Technologies 5 · Nascent |
| Sovereign debt reset S19 ↗ | Mixed | −3.9 | 0.6 | 4.5 | 72 | 181 | Public Integrity & Anti-Corruption 14 · Established |
| Yield revolution S22 ↗ | Mixed | −4.0 | 2.8 | 6.7 | 42 | 121 | Biotechnology & Health Technologies 5 · Nascent |