Luxembourg Economic Outlook
July 23, 2019Growth decelerated in the first quarter on a broad-based slowdown amid a wider European pullback. Domestically, private consumption lost stride, as households bolstered their savings amid stock-market volatility and greater deposits by British nationals in preparation for Brexit. In addition, fixed investment contracted partly due to subdued construction activity. Meanwhile, although the gloomier external backdrop dragged on exports in Q1, a corresponding fall in import growth cushioned the slowdown. Turning to the second quarter, private consumption likely picked up: Consumer sentiment turned positive in the quarter, while retail sales growth for April nearly doubled Q1’s average. Business confidence, on the other hand, sank deeper into negative territory in Q2 on souring expectations within the industrial sector, likely weighing on capital investment.
Luxembourg Economic GrowthEconomic activity is projected to soften this year as mounting regional uncertainty weighs on the all-important financial sector, as well as on exports. Nevertheless, solid private consumption should buffer any slowdown as households benefit from a tight labor market, as well as from inflation-indexed increases in wages and pensions. FocusEconomics analysts see growth at 2.4% in 2019, which is down 0.1 percentage points from last month’s forecast, and at 2.6% in 2020.
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|Exchange Rate||1.11||0.65 %||Jul 31|
|Stock Market||629||0.19 %||Jul 31|
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Luxembourg Economic News
August 7, 2019
Consumer prices fell 0.7% month-on-month in July, the lowest print in six months, after a 0.1% downturn in June.
July 22, 2019
In June, the number of unemployed workers stood at 15,037, down 0.6% from May’s result, while the seasonally-adjusted unemployment rate remained stable at 5.5% to match that of the same month last year.
July 3, 2019
Consumer prices fell 0.1% month-on-month in June, contrasting May’s 0.3% upturn and largely reflecting lower oil prices.
June 21, 2019
Growth decelerated to 1.6% year-on-year in Q1, from Q4 2018’s revised 1.8% outturn (previously reported: +1.7% year-on-year).
June 20, 2019
In May, the number of unemployed workers stood at 15,124, down 2.2% from April’s result, while the seasonally-adjusted unemployment rate ticked up to 5.5% (April: +5.4%) to match that of the same month last year.