“Real GDP growth in Luxembourg is expected to remain low in 2024, at 1.2%,” the European Commission wrote on Friday in its autumn economic forecasts for the Grand Duchy. This is a little less than projected six months ago (1.4%). Low growth in 2024 “is mainly due to a slowdown in investments and net exports, in a context of unfavorable financing and geopolitical uncertainty,” writes the European Commission.
The years 2025 and 2026 are expected to be under better auspices with respective increases of 2.3 and 2.2% (well above projections for the entire euro zone, +1.3% in 2025 and above). 1.6% in 2026). These forecasts for Luxembourg are, however, less optimistic than the latest data provided by Statec which forecast GDP growth of 1.5% in 2024, 2.7% in 2025 and until 2028.
Inflation, after a slowdown in 2024 (2.3%), is expected to “rebound slightly” in 2025 (2.4%), due to the gradual elimination of several energy measures. On the employment front, Brussels sees an unemployment rate of 6% in 2024 and 2025 and 5.8% in 2026.
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