Luxembourg Economic Outlook
May 5, 2020Available data paints a bleak picture for the first quarter and beyond amid the Covid-19 pandemic and the measures imposed to combat its spread. Consumer sentiment plunged to a near four-year low in March, while jobless claims surged in the same month, sending the unemployment rate to an over three-year high. Meanwhile, in mid-April the government issued a EUR 2.5 billion bond at negative interest rate to support state finances, while implementing its fiscal stimulus package worth roughly 14% of GDP. On 14 April, the authorities also announced a gradual exit strategy: Lockdowns first will be lifted in the construction sector and related activities, with the consumer-facing sectors to be lifted at a later stage.
Luxembourg Economic GrowthGDP is seen contracting this year due to the Covid-19 pandemic. Lockdown measures will strain consumer spending and fixed investment, while feeble global demand is set to depress the external sector. Fiscal stimulus should provide some support, however. FocusEconomics analysts see GDP contracting 5.7% in 2020, which is down 1.9 percentage points from last monthâ€™s forecast. For 2021, the panel sees GDP growth at 5.6%.
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Luxembourg Economic News
May 6, 2020
Consumer prices fell 0.1% over the previous month in April, following the 0.6% decrease logged in March.
April 20, 2020
In March, the number of unemployed workers came in at 18,398, which was up 10.5% from February’s figure of 16,652 and largely reflected government containment measures due to the Covid-19 pandemic.
April 3, 2020
Consumer prices fell 0.6% over the previous month in March, contrasting February’s 1.3% rise.
April 1, 2020
In April, the number of unemployed workers came in at 20,253, which was up 10.1% from March’s figure of 18,398 and reflected the impact of the Covid-19 crisis on employment.
March 20, 2020
Growth accelerated to 3.1% year-on-year in the fourth quarter of 2019, up from the third quarter’s downwardly revised 2.8% expansion (previously reported: +3.0% year-on-year) and marking the strongest expansion since Q2 2018, according to a first estimate released by the Statistical Institute (STATEC) on 20 March.