Luxembourg Economic Forecast

Luxembourg Economic Outlook

June 26, 2018

Recently released GDP data showed that the economy grew a stellar 2.0% quarter-on-quarter in Q1, marking the fastest expansion since Q2 2016 and coming in well above the feeble 0.1% rise logged in Q4. The first-quarter reading reflected stronger fixed investment and public spending growth, which more than offset a moderation in private consumption and a weak external sector. Going forward, the economic scenario remains positive: The unemployment rate is currently hovering at pre-Eurozone crisis levels and consumer confidence is well above the historical average, both boding well for private consumption in Q2.

Luxembourg Economic Growth

Economic growth is poised to accelerate this year, underpinned by robust consumer spending, due to an improving labor market and favorable credit conditions, and increased public expenditure. However, extremely high household debt, largely owing to mortgages, remains a key concern if faster-than-expected normalization of ECB monetary policy translates into an interest rate shock to homeowners. FocusEconomics panelists estimate that GDP will expand 3.4% in 2018, unchanged from last month’s forecast, and 3.4% again in 2019.

Luxembourg Economy Data

20132014201520162017
Population (million)0.50.60.60.60.6
GDP per capita (EUR)86,59290,89692,54492,02393,861
GDP (EUR bn)46.550.052.153.055.4
Economic Growth (GDP, annual variation in %)3.75.82.93.12.3
Consumption (annual variation in %)2.22.33.42.42.3
Investment (annual variation in %)1.24.3-8.00.51.9
Exports (G&S, annual variation in %)5.314.06.92.73.9
Imports (G&S, annual variation in %)5.114.67.12.13.9
Industrial Production (annual variation in %)-7.1-2.7-8.21.59.8
Retail Sales (annual variation in %)15.18.3-30.7-52.7-22.8
Unemployment Rate6.87.16.86.45.9
Fiscal Balance (% of GDP)1.01.31.41.61.5
Public Debt (% of GDP)23.722.722.020.823.0
Inflation Rate (HICP, annual variation in %, eop)1.5-0.90.91.61.6
Inflation Rate (HICP, annual variation in %)1.70.70.10.02.1
Inflation (PPI, annual variation in %)-2.6-1.4-5.31.44.5
Policy Interest Rate (%)0.250.050.050.00.0
Exchange Rate (vs USD)1.381.211.091.051.20
Exchange Rate (vs USD, aop)1.331.331.111.111.13
Current Account (% of GDP)5.55.25.15.15.0
Current Account Balance (EUR bn)2.52.62.62.72.8
Trade Balance (EUR billion)-7.6-6.7-6.0-5.7-6.3

Sample Report

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

Download

Sample Report

Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.

Download

Luxembourg Facts

ValueChangeDate
Exchange Rate1.170.65 %Jul 17
Stock Market8430.19 %Jul 17

Start Your Free 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

Search form

Cookies Policy: We use third-party cookies to improve our services by analyzing your browsing habits.
By continuing to use this website you are giving consent to cookies being used. For more information on cookies and how you can disable them, see our "Cookies Policy". Close