Economic Growth in Luxembourg
The Luxembourg economy recorded an average growth rate of 2.6% in the decade to 2022, above the 1.4% average for the Euro Area. In 2022, real GDP growth was 1.4%. For more GDP information, visit our dedicated page.
Luxembourg GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Luxembourg from 2014 to 2024.
Source: Macrobond.
Luxembourg GDP Data
2020 | 2021 | 2022 | 2023 | 2024 | |
---|---|---|---|---|---|
Economic Growth (GDP, ann. var. %) | -0.9 | 7.2 | 1.4 | -2.7 | 1.0 |
GDP (EUR bn) | 64.5 | 72.4 | 77.5 | 81.0 | 86.1 |
Economic Growth (Nominal GDP, ann. var. %) | 3.4 | 12.1 | 7.1 | 4.5 | 6.3 |
GDP growth hits three-year high in Q4
GDP rebounds in Q4: GDP bounced back in Q4, expanding 1.4% on a seasonally adjusted quarter-on-quarter basis (Q3: -0.9% qoq s.a.), marking the best result in three years and more than triple the EU average. On an annual basis, economic activity rose 1.8% in Q4, improving from the previous quarter’s flat reading and signifying the best reading since Q3 2022. As a result, the economy rebounded by 1.0% in 2024, following a 2.7% contraction logged in 2023.
Total investment and exports drive the rebound: Domestically, total investment fell sequentially at a milder pace of 0.8% in Q4 (Q3: -5.1% qoq s.a.), likely aided by lower interest rates. Government consumption growth was stable at Q3’s 0.8% in Q4. Meanwhile, household spending growth fell to 0.4% in Q4, marking the weakest expansion since Q1 2024 (Q3: +1.5% qoq s.a.). On the external front, exports of goods and services growth accelerated to 1.8% in the fourth quarter, posting the best reading since Q1 2023 (Q3: +0.1% s.a. qoq). In addition, imports of goods and services growth rose to 1.8% in Q4 (Q3: +0.6% s.a. qoq).
Economy to gain speed in 2025: Our Consensus is for GDP growth to pick up from 2024 levels in 2025: Looser financing conditions will fuel a rebound in fixed investment, buttress private consumption and bolster the crucial financial sector. Moreover, exports of goods and services are expected to grow at a faster pace amid stronger EU demand. On the flip side, softer public spending growth will keep GDP growth in 2025 below its 10-year pre-pandemic average. Escalating international trade frictions and higher-than-expected inflation are downside risks.
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Luxembourg GDP projections for the next ten years from a panel of 12 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. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Luxembourg GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Luxembourg GDP projections.
Want to get access to the full dataset of Luxembourg GDP forecasts? Send an email to info@focus-economics.com.
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