
Luxembourg Economic Outlook
May 31, 2022
The economy likely lost steam in the opening quarter of the year amid the fallout from the war in Ukraine. Consumer sentiment soured as inflation ballooned on the back of higher energy and raw material costs. Household spending is likely to have been dented as a consequence, despite falling unemployment. Turning to Q2, consumer sentiment remained deeply pessimistic in April, while harmonized inflation rose to an all-time high. More positively, business sentiment returned to optimism in April, albeit timidly, likely supported by limited direct exposure to Russia and Ukraine. Meanwhile, the European Commission recently noted the sustainability of the public finances, the tax system, inequality in education and the green transition as key challenges going forward.Luxembourg Economic Growth
Economic growth will slow this year due to the war in Ukraine and a less favorable base effect. Household spending will be hit by pessimistic sentiment and higher prices due to costlier energy and food. However, growth will be supported by EU funds disbursement, a tight labor market and loose monetary and fiscal policies. FocusEconomics analysts see GDP expanding 2.5% in 2022, which is down 0.1 percentage points from last month’s forecast, and 3.0% in 2023.Luxembourg Economy Data
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Luxembourg Facts
Value | Change | Date | |
---|---|---|---|
Exchange Rate | 1.12 | 0.65 % | Dec 31 |
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Luxembourg Economic News
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Luxembourg: Economy grows at softest pace since Q4 2020 in the first quarter
June 15, 2022
GDP growth moderated to 4.1% year on year in the first quarter, from 4.8% in the fourth quarter of last year.
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Luxembourg: Harmonized inflation comes in at highest level since records began in May
June 10, 2022
Consumer prices rose 0.13% in May over the previous month, which was below April's 0.82% rise.
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Luxembourg: Retail sales fall at sharpest rate since July 2021 in March
May 26, 2022
Retail sales fell 4.5% year on year in March (February: -1.7% yoy).
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Luxembourg: Inflation jumps to record-high in April
May 9, 2022
Consumer prices rose 0.82% over the prior month in April, down from March’s 1.00% increase.
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Luxembourg: Retail sales fall at sharpest rate since July 2021 in February
April 26, 2022
Retail sales fell 0.3% year-on-year in February (January: +7.1% yoy).