Cityscape in Luxembourg

Luxembourg GDP Q3 2019

Luxembourg: Economy loses pace in Q3

Growth decelerated to 3.0% year-on-year in the third quarter, down from the second quarter’s downwardly revised 3.2% expansion (previously reported: +3.7% year-on-year), according to data released by the Statistical Institute (STATEC) on 20 December.

In the third quarter, private consumption growth—which includes spending from non-profit institutions serving households—slowed to 2.3% from a revised 3.4% in the previous quarter (previously reported: +2.8% yoy) amid ebbing downbeat consumer sentiment. Meanwhile, government spending rose 5.5% in the third quarter (Q2: +4.7% yoy), while fixed investment jumped 9.0%, rebounding from Q2’s 0.4% contraction.

On the external front, export growth picked up pace in the third quarter despite subdued global trading environment, coming in at 3.1% (Q2: +1.0% yoy) and marking the quickest expansion since Q1 2018. Similarly, import growth gained traction, expanding 3.5% in the third quarter (Q2: +0.4% yoy).

On a quarter-on-quarter, seasonally-adjusted basis, the economy grew 0.2% in Q3, which was down from Q2’s revised 2.1% expansion (previously reported: +2.2% quarter-on-quarter, seasonally adjusted).

Looking forward, growth should remain steady this year on the back of robust household spending amid supportive labor market conditions. Subdued global demand and uncertainty on the international economic scene pose downside risks to the outlook, however.

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