Luxembourg's Macroeconomic Analysis:
Nominal GDP of USD 81.5 billion in 2022.
Nominal GDP of USD 85.7 billion in 2023.
GDP per capita of USD 129,725 compared to the global average of USD 10,589.
GDP per capita of USD 126,344 compared to the global average of USD 10,589.
Average real GDP growth of 2.5% over the last decade.
Average real GDP growth of 2.3% over the last decade.
Sector Analysis
In 2021, services accounted for 88% of overall GDP, manufacturing 5%, other industrial activity 7%, and agriculture 0%. Looking at GDP by expenditure, private consumption accounted for 30% of GDP in 2021, government consumption 17%, fixed investment 18%, and net exports 35%.International trade
In 2021, manufactured products made up 82% of total merchandise exports, mineral fuels 0%, food 9%, ores and metals 5% and agricultural raw materials 1%, with other categories accounting for 3% of the total. In the same period, manufactured products made up 68% of total merchandise imports, mineral fuels 6%, food 12%, ores and metals 7% and agricultural raw materials 2%, with other goods accounting for 5% of the total. Total exports were worth USD 28 billion in 2022, while total imports were USD 27 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.5% in the decade to 2022. To read more about GDP growth in Luxembourg, go to our dedicated page.
Fiscal policy
Luxembourg's fiscal surplus averaged 0.8% of GDP in the decade to 2022. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 6.1% in the decade to 2022. For more information on Luxembourg's unemployment click here.
Inflation
Inflation averaged 2.1% in the decade to 2022. Go to our Luxembourg inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2022 at 2.50%, up from 0.75% a decade earlier. See our Luxembourg monetary policy page for additional details.
Exchange Rate
From end-2012 to end-2022 the euro weakened by 18.2% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Luxembourg
The economy lost steam in Q3, slowing to a 0.2% expansion in seasonally adjusted quarterly terms (Q2: +0.6% qoq s.a.). The rise was the slowest in nearly a year and surprised markets on the downside. Public spending growth almost halved in the quarter, and net exports detracted from overall GDP growth. More positively, private spending and total investment accelerated amid disinflation and the government’s expansionary fiscal stance. Heading into Q4, available data leaves scope for optimism. In October, both industrial activity and retail sales improved from Q3’s levels. Additionally, in October–November, economic sentiment rose above Q3’s average, and inflation cooled from the prior quarter’s average. The ECB’s interest rate cuts should also be buoying domestic momentum and external demand.Luxembourg Economic Forecasts
Projections out to 2034.42 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 14 expert analysts.
Want to get insight on the economic outlook for Luxembourg in the coming years? FocusEconomics collects projections out to 2034 on 42 economic indicators for Luxembourg from a panel of 14 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. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Luxembourg economy. To download a sample report on the Luxembourg's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.