Luxembourg: Growth hits one-and-a-half-year high in Q4 2019
Growth accelerated to 3.1% year-on-year in the fourth quarter of 2019, up from the third quarter’s downwardly revised 2.8% expansion (previously reported: +3.0% year-on-year) and marking the strongest expansion since Q2 2018, according to a first estimate released by the Statistical Institute (STATEC) on 20 March. On a quarter-on-quarter, seasonally-adjusted basis, the economy expanded 0.4% in Q4, which was down from Q3’s upwardly revised 0.3% rise (previously reported: +0.2% quarter-on-quarter). Taking the year as a whole, GDP grew 2.3% in 2019, markedly down from the 3.1% expansion in 2018.
In the fourth quarter, public expenditure growth moderated marginally to 5.3% from a revised 5.4% in Q3 (previously reported: +5.5% yoy), while private consumption growth—which includes spending from non-profit institutions serving households—slowed to 1.8% from an upwardly revised 2.8% (previously reported: +2.3% yoy). Meanwhile, fixed investment growth decelerated to 7.3% from Q3’s upwardly revised 9.4% rise (previously reported: +9.0% yoy).
On the external front, export growth lost considerable pace in the fourth quarter amid the subdued global trading environment, coming in at 1.2%, down from a revised 2.6% rise in Q3 (previously reported: +3.1% yoy). Meanwhile, import growth also lost traction, slowing to 1.5% from Q3’s revised 3.1% expansion (previously reported:+3.5% yoy).
Looking forward, growth is expected to slow this year, restrained by the fallout from the coronavirus pandemic.