Luxembourg Economic Forecast

Luxembourg Economic Outlook

May 3, 2022

After economic growth stabilized in the fourth quarter of last year, the economy likely lost some momentum in the first quarter. The war in Ukraine probably caused consumer sentiment to sour further, dropping to its lowest level since December 2008 in March. The conflict also sent consumer price inflation up as commodity prices skyrocketed, further denting household consumption in the period. On the other hand, industrial production firmed on an annual basis in January–February. Additionally, the labor market tightened and business confidence improved on average in the quarter, although the latter’s reading moderated markedly in March. Luxembourg’s economic structure, which is heavily reliant on the financial sector, should keep the impact of the war limited compared to other European nations.

Luxembourg Economic Growth

Economic growth will ease markedly this year as the base effect turns less favorable, consumer sentiment is weighed down by the Russia-Ukraine war, and higher inflation drags on consumption. The pandemic and possible further lockdowns pose downside risks. However, EU funds disbursement and loose monetary and fiscal policies should provide some stimulus. FocusEconomics analysts see GDP expanding 2.6% in 2022, which is down 0.4 percentage points from last month’s forecast, and 2.8% in 2023.

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