Luxembourg Economic Forecast

Luxembourg Economic Outlook

October 27, 2020

Incoming data suggests the economy gradually recovered in the third quarter, after GDP contracted for the first time in nearly eight years in the second quarter on the blow dealt by the coronavirus health crisis. New car registrations rallied in July and August, hinting at improved consumer spending in the quarter as restrictions were gradually lifted. Moreover, the unemployment rate logged the lowest reading in six months in September, indicating that the labor market continued to stabilize. Meanwhile, economic sentiment improved overall in the quarter, albeit deteriorating slightly in September amid renewed Covid-19 concerns as cases spiked again. Meanwhile, on 14 October, the government laid out its 2021 draft budget, aimed at containing the fallout from the Covid-19 crisis and supporting a healthy recovery, particularly through increased investment of 4.3% of GDP (EUR 2.7 billion).

Luxembourg Economic Growth

The economy is set to rebound in 2021, after this year’s projected contraction due to the coronavirus shock. Household spending should recover as the labor market stabilizes, while investment activity is set to bounce back. Firming global demand should support a recovery in the external sector. A protracted health crisis clouds the outlook, however. FocusEconomics analysts see GDP expanding 5.6% in 2021, which is down 0.6 percentage points from last month’s forecast, and 3.7% in 2022.

Luxembourg Economy Data

2015 2016 2017 2018 2019
Population (million)0.60.60.60.60.6
GDP per capita (EUR)92,48095,25596,13299,756103,446
GDP (EUR bn)52.154.956.860.163.5
Economic Growth (GDP, annual variation in %)4.34.61.83.12.3
Consumption (annual variation in %)1.83.42.13.32.8
Investment (annual variation in %)-7.74.65.6-5.94.0
Exports (G&S, annual variation in %)4.72.60.70.50.8
Imports (G&S, annual variation in %)3.41.60.6-0.30.9
Industrial Production (annual variation in %)-8.21.56.45.8-4.4
Retail Sales (annual variation in %)-30.7-52.7-23.13.64.4
Unemployment Rate6.86.35.95.55.4
Fiscal Balance (% of GDP)1.31.81.33.12.2
Public Debt (% of GDP)22.020.122.321.022.1
Inflation Rate (HICP, annual variation in %, eop)0.91.61.61.91.8
Inflation Rate (HICP, annual variation in %)0.10.02.12.01.7
Inflation (PPI, annual variation in %)-5.31.44.52.9-1.8
Policy Interest Rate (%)-  -  -  -  -  
Exchange Rate (vs USD)1.091.051.201.141.12
Exchange Rate (vs USD, aop)1.111.111.131.181.12
Current Account (% of GDP)5.14.94.94.84.5
Current Account Balance (EUR bn)2.62.72.82.92.8
Trade Balance (EUR billion)-1.5-2.1-1.7-1.8-1.1

Sample Report

5 years of Luxembourg economic forecasts for more than 30 economic indicators.

Download

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Luxembourg Facts

Value Change Date
Exchange Rate1.120.65 %Dec 31

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Luxembourg Economic News

Search form