Cityscape in Luxembourg

Luxembourg GDP Q2 2023

Luxembourg: GDP drops in Q2

GDP declined 0.1% on a seasonally adjusted quarter-on-quarter basis in the second quarter, contrasting the 0.6% expansion tallied in the first quarter.

The downturn reflected contractions in private consumption, fixed investment and exports. Household spending contracted 0.4% seasonally-adjusted quarter-on-quarter in Q2, compared to a 3.5% expansion in Q1. Public consumption rebounded, growing 1.4% in Q2 (Q1: -0.1% s.a. qoq). Meanwhile, fixed investment worsened, contracting 3.2% in Q2 and contrasting the 2.2% increase logged in the prior quarter.

On the external front, exports of goods and services slid 0.6% in Q2 (Q1: 0.0% s.a. qoq). In addition, imports of goods and services deteriorated, contracting 1.8% in Q2 (Q1: +1.4% s.a. qoq).

On an annual basis, GDP declined at a quicker pace of 1.7% in Q2, compared to the previous period’s 1.6% contraction.

It is important to note that Luxembourg’s national accounting data tends to exhibit volatility and is susceptible to significant revisions due to substantial capital flow fluctuations.

On the outlook for 2023, analysts at the EIU commented:

“Growth in 2023 will be held back by tightening monetary policy, with interest rates rising sharply in the euro zone; high inflation, weighing on consumer purchasing power; and a subdued external environment, with US and global growth slowing considerably. Still-high inflation will continue to squeeze household incomes and affect private consumption. Financial services exports are the traditional driver of growth in Luxembourg, and this sector will remain dominant in 2023.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest