Cityscape in Luxembourg

Luxembourg Economy

Luxembourg's economy in numbers:

Nominal GDP of USD 81.5 billion in 2022.

GDP per capita of USD 126,344 compared to the global average of USD 10,589.

Average real GDP growth of 2.5% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 88% of overall GDP, manufacturing 5%, other industrial activity 7%, and agriculture 0%. Looking at GDP by expenditure, private consumption accounted for 30% of GDP in 2021, government consumption 17%, fixed investment 18%, and net exports 35%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 82% of total merchandise exports, mineral fuels 0%, food 9%, ores and metals 5% and agricultural raw materials 1%, with other categories accounting for 3% of the total. In the same period, manufactured products made up 68% of total merchandise imports, mineral fuels 6%, food 12%, ores and metals 7% and agricultural raw materials 2%, with other goods accounting for 5% of the total. Total exports were worth USD 28 billion in 2022, while total imports were USD 27 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 2.5% in the decade to 2022. To read more about GDP growth in Luxembourg, go to our dedicated page.

Fiscal policy:

Luxembourg's fiscal surplus averaged 0.8% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 6.1% in the decade to 2022. For more information on Luxembourg's unemployment click here.

Inflation:

Inflation averaged 2.1% in the decade to 2022. Go to our Luxembourg inflation page for extra insight.

Monetary Policy:

Euro Area monetary policy rate ended 2022 at 2.50%, up from 0.75% a decade earlier. See our Luxembourg monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the euro weakened by 18.2% vs the U.S. dollar. For more info on the euro, click here.
GDP growth reached an over two-year high in Q1 in quarter-on-quarter seasonally adjusted terms from Q4 2023’s flat reading.Turning to Q2, our Consensus is for the economy to have risen at a broadly similar pace to Q1. That said, available data is downbeat. Both industrial activity and retail sales weakened in April–May from Q1, likely dampened by rising producer prices and a higher unemployment rate, respectively. Additionally, still-tight monetary conditions in the Euro area likely curbed investment. Meanwhile, economic sentiment ticked up from Q1’s average through June on softer consumer pessimism. In addition, annual data suggests that headwinds to external demand might be softening, with goods exports recovering from Q1’s year-on-year contraction in April.
Projections out to 2033.

43 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 15 expert analysts.

Want to get insight on the economic outlook for Luxembourg in the coming years? FocusEconomics collects projections out to 2033 on 43 economic indicators for Luxembourg from a panel of 15 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Luxembourg economy. To download a sample report on the Luxembourg's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.

Luxembourg Economic Data

2019 2020 2021 2022 2023
Population (million) 0.6 0.6 0.6 0.6 0.7
GDP (EUR bn) 62.4 64.8 72.4 77.5 79.3
GDP per capita (EUR) 101,586 103,484 113,954 120,200 119,984
Economic Growth (Nominal GDP, ann. var. %) 3.7 3.9 11.7 7.1 2.3
Economic Growth (GDP, ann. var. %) 2.3 -0.8 7.7 1.4 -1.1
Domestic Demand (ann. var. %) 4.1 -2.9 10.5 -1.0 2.4
Private Consumption (ann. var. %) 2.3 -7.3 10.1 2.3 4.0
Government Consumption (ann. var. %) 2.6 7.8 4.7 2.6 2.5
Fixed Investment (ann. var. %) 13.5 -6.7 16.9 -7.7 -1.0
Exports (G&S, ann. var. %) 4.5 0.2 12.2 -0.6 -1.4
Imports (G&S, ann. var. %) 5.7 -0.4 14.3 -1.9 -0.1
Industrial Production (ann. var. %) -3.2 -10.9 8.4 -1.3 -5.7
Retail Sales (ann. var. %) 7.1 0.7 -3.7 -2.8 7.4
Unemployment (% of active population, eop) 5.4 6.3 5.2 4.9 5.5
Unemployment (% of active population, aop) 5.4 6.4 5.7 4.8 5.2
Fiscal Balance (% of GDP) 2.2 -3.4 0.5 -0.3 -1.3
Public Debt (% of GDP) 22.4 24.6 24.5 24.7 25.7
Inflation (HICP, ann. var. %, eop) 1.8 -0.3 5.4 6.2 3.2
Inflation (HICP, ann. var. %, aop) 1.6 0.0 3.5 8.2 2.9
Inflation (PPI, ann. var. %, aop) -1.9 -1.9 11.3 25.6 2.8
ECB Refinancing Rate (%, eop) 0.00 0.00 0.00 2.50 4.50
ECB Overnight Deposit Rate (%, eop) -0.50 -0.50 -0.50 2.00 4.00
3-Month EURIBOR (%, eop) -0.38 -0.55 -0.57 2.13 3.91
Exchange Rate (USD per EUR, eop) 1.12 1.22 1.14 1.07 1.10
Exchange Rate (USD per EUR, aop) 1.12 1.14 1.18 1.05 1.08
Current Account Balance (EUR bn) 5.5 5.5 5.7 5.9 5.4
Current Account Balance (% of GDP) 8.9 8.6 7.9 7.7 6.8
Merchandise Trade Balance (EUR bn) 1.6 1.5 0.8 0.1 -0.2
Foreign Direct Investment (EUR bn) 146 9 21 -342 -58

Free Sample Report

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