Cityscape in Luxembourg

Luxembourg GDP Q3 2023

Luxembourg: GDP enters into technical recession in Q3

GDP fell at a slower rate of 0.1% on a seasonally adjusted quarter-on-quarter basis in the third quarter, bringing the economy into a technical recession following the 0.2% contraction logged in the second quarter. Q3’s sequential reading marked the largest contraction since Q4 2022. On an annual basis, GDP declined 1.8% in Q3, compared to the previous quarter’s 1.5% fall.

Household spending contracted 0.2% in Q3, marking the worst result since Q4 2022 (Q2: +0.9% s.a. qoq). Meanwhile, public consumption growth moderated to 1.2% in Q3 (Q2: +1.4% s.a. qoq). Fixed investment rebounded, growing 3.5% in Q3, contrasting the 5.8% decrease recorded in the prior quarter. Exports of goods and services growth sped up to 1.0% seasonally adjusted quarter on quarter in the third quarter, which marked the best reading since Q4 2021 (Q2: +0.4% s.a. qoq). In addition, imports of goods and services bounced back, growing 1.4% in Q3 (Q2: -0.7% s.a. qoq).

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

“Growth in 2024 will be driven by slowing inflation, which will strengthen household spending; a loosening in monetary policy from the second half of the year; and a rebound in export growth. Financial services exports are the traditional driver of growth in Luxembourg, and this sector will remain dominant in 2024.”

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