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Luxembourg's Economy: Steady Growth and Declining Inflation Ahead

5/21/2025

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Summary

Story summary

Luxembourg's GDP is set to grow by 1.7% in 2025 and 2% in 2026, following a 1% increase in 2024, fueled by investment recovery.
Inflation is projected to decline to 2.1% in 2025 and 1.8% in 2026, despite a minor rise in energy prices.
Employment growth is expected to reach 1.3% in 2025, with unemployment peaking at 6.6%.
The state budget is anticipated to shift to a 0.4% GDP deficit in 2025, increasing to 0.5% in 2026.

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Story summary

Luxembourg's GDP is set to grow by 1.7% in 2025 and 2% in 2026, following a 1% increase in 2024, fueled by investment recovery.
Inflation is projected to decline to 2.1% in 2025 and 1.8% in 2026, despite a minor rise in energy prices.
Employment growth is expected to reach 1.3% in 2025, with unemployment peaking at 6.6%.
The state budget is anticipated to shift to a 0.4% GDP deficit in 2025, increasing to 0.5% in 2026.