Cityscape in Luxembourg

Luxembourg GDP

Luxembourg GDP

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 2023.
Source: STATEC.

Luxembourg GDP Data

2018 2019 2020 2021 2022
Economic Growth (GDP, ann. var. %) 1.2 2.3 -0.8 7.7 1.4
GDP (EUR bn) 60.1 62.4 64.8 72.4 77.5
Economic Growth (Nominal GDP, ann. var. %) 3.4 3.7 3.9 11.7 7.1

GDP stabilizes in the final quarter

GDP stagnated on a seasonally adjusted quarter-on-quarter basis in Q4, an improvement from the 1.4% contraction recorded in the third quarter. On an annual basis, GDP slid at a milder rate of 0.7% in Q4, compared to the previous period's 2.1% contraction. In addition, GDP data for Q3 and Q1 was revised downward, meaning that the economy shrank 1.1% over the year as a whole, the worst performance since 2009 and only the seventh time the economy has shrunk since comparable records began in 1961. That said, the data may be revised ahead; Luxembourg’s GDP figures tend to be volatile due to the importance of the financial sector.

Household spending increased 1.2% in the fourth quarter, which contrasted with the third quarter's 1.0% contraction. Government consumption growth hit an over two-year high of 1.6% in the final quarter, up from the third quarter's 1.2%. Meanwhile, fixed investment contracted 5.1% in Q4, worsening from the 2.4% decrease recorded in the previous quarter. On the external front, exports of goods and services deteriorated, contracting 0.8% in Q4 (Q3: +0.4% s.a. qoq). Meanwhile, imports of goods and services flatlined in Q4 (Q3: +0.6% s.a. qoq).

Our panelists expect GDP growth to gradually gain steam this year as inflation abates and interest rates are cranked down by the ECB. Over 2024 as a whole, our panelists expect the economy to grow 1.5%, a rate below the average of the preceding 10 years.

On the outlook, EIU analysts said: “Growth in 2024 will be driven by slowing inflation (which will strengthen household spending), loosening monetary policy from the second half 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. Real GDP growth will accelerate to 2.4% in 2025.”

Consensus Forecasts and Projections for the next ten years

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.

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