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Macro - Country Economic Forecasts - Luxembourg

Publisher Oxford Economics
Published Aug 28, 2025
Length 8 Pages
SKU # OFE20418453

Description

We've cut our 2025 GDP growth forecast for Luxembourg by 0.8ppts to 1% this year, primarily due to a weak Q1. We've also lowered our outlook for 2026 by 0.4ppts to a 1.6% expansion because we anticipate a slower export recovery due to US tariffs and lower consumption levels, as higher inflation this year weighs on real incomes.

Table of Contents

8 Pages
Luxembourg: Growth will slow amid stronger macro headwinds
Forecast overview
Recent developments
Short-term growth outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics

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