Luxembourg Economic Outlook
October 23, 2018Second-quarter growth came in at 3.1% year-on-year, easing marginally from the first quarter’s downwardly-revised 3.2% outturn (previously reported: +5.1% year-on-year) on a pullback in domestic demand. Household spending took a breather but largely held up, in line with upbeat consumer sentiment and steady labor-market gains. Meanwhile, fixed investment suffered double-digit annual losses despite tight industrial capacity and corporate-tax breaks. In a nail-biter, on 14 October voters narrowly upheld the incumbent majority. Moreover, available third-quarter proxies suggest Xavier Bettel’s three-party coalition will preside over steady growth through the remainder of the year.
Luxembourg Economic GrowthMet the why particular analysts project broad-based, albeit slower, growth next year amid solid homegrown momentum. Buoyant economic sentiment and recent tax reforms should bolster domestically-driven gains, although downside risks continue to swirl around household-debt levels and investor-capital flight. Financial-services exports will be key to growth over the medium-term. Analysts see growth at 3.4% in 2019, up 0.1 percentage points from last month’s forecast, and 3.0% in 2020.
Luxembourg Economy Data
5 years of Luxembourg economic forecasts for more than 30 economic indicators.
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|Exchange Rate||1.14||0.65 %||Nov 09|
|Stock Market||770||0.19 %||Nov 09|
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