Luxembourg Economic Outlook
May 3, 2022After 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 GrowthEconomic 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
5 years of Luxembourg economic forecasts for more than 30 economic indicators.
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|Exchange Rate||1.12||0.65 %||Dec 31|
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Luxembourg Economic News
May 9, 2022
Consumer prices rose 0.82% over the prior month in April, down from March’s 1.00% increase.
April 26, 2022
Retail sales fell 0.3% year-on-year in February (January: +7.1% yoy).
April 8, 2022
Consumer prices rose 1.00% from the previous month in February, down from February’s 2.18% increase.
March 25, 2022
Retail sales jumped 5.3% year-on-year in January, up from December’s 1.65 increase.
March 22, 2022
Consumer prices rose 0.2.18% from the previous month in February, up from January’s 0.12% decrease.