Luxembourg Economic Forecast

Luxembourg Economic Outlook

September 28, 2021

Economic activity likely remained healthy in the second quarter. The unemployment rate trended downwards through June, while consumer sentiment returned to optimistic territory at the tail end of the quarter, boding well for household consumption. Moreover, private sector activity likely strengthened in Q2, with business confidence rising in each month. Turning to the third quarter, available data paints a mixed picture. Although consumer sentiment fell back into pessimistic territory in July–August, the unemployment rate continued to drop in the same period, coming in at the lowest level since February last year in August. Meanwhile, business confidence rose to its highest level since December 1997 in the same month, highlighting that firms retain an optimistic outlook.

Luxembourg Economic Growth

After returning to growth this year on the back of firming demand, the economy is forecast to grow at a softer pace next year due to a less favorable base effect. Expansionary fiscal and monetary policies, together with inflows of EU funds, should support activity. However, lingering uncertainty over Covid-19 and potential new lockdown measures cloud the outlook. FocusEconomics analysts see GDP expanding 4.5% in 2021 and 3.3% in 2022, which is unchanged from last month’s forecast.

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