Real GDP; Credit: Eurostat / STATEC

According to the latest statistics from STATEC, Luxembourg's GDP recorded a historic decline in the second quarter of 2020 - a development linked to the impact of COVID-19 containment measures on economic activity.

As in most European countries, Luxembourg experienced a significant drop in its gross domestic product (GDP) in the second quarter of the year. GDP in the Grand Duchy fell by 7.2% compared to the previous quarter and by 7.8% over one year. This marks the largest drop in the space of one quarter in the country's history (since data was available in 1995). A similar trend is noted across the eurozone.

This historic decline is largely due to a loss of activity linked to the coronavirus pandemic, notably measures taken to contain the spread of the virus.

Nevertheless, this drop appears to be limited compared to the results recorded in the eurozone.

The report also forecast a rebound in the third quarter of 2020, although any deterioration in the health situation will weigh on the dynamics of economic recovery.