Luxembourg enjoys the highest per capita income in the OECD and has emerged from the economic and financial crisis in relatively good shape. The important financial centre rode out the global financial crisis, banks are well capitalised, public finances are robust compared to most other OECD countries, and unemployment is relatively low. In particular, employment in the financial sector has continued to grow, benefitting from inflows to asset management, which has sustained domestic demand. However, the weak recovery and downside risks to global and European growth imply an uncertain short-term outlook.