Summary of macroeconomic projections for Luxembourg;
Credit: STATEC
On Thursday 19 September 2024, STATEC published its updated forecasts for 2024 and 2025, as well as its medium-term projections.
As reported by STATEC, Luxembourg is currently emerging from the recession it experienced in 2023, with real GDP growth still expected at +1.5% in 2024. From 2025 to 2028, growth is expected to gradually strengthen, approaching 3% by the end of the period.
However, as with employment, STATEC deemed the medium-term economic growth outlook less favourable than previously expected. Employment is expected to struggle to exceed 2% growth and unemployment is expected to rise above 6% until at least 2026. STATEC predicted that inflation would fall rapidly, despite a slight rebound in 2025 due to a lower ceiling on energy prices.
STATEC noted that it had presented its updated short-term forecasts (2024-2025) and mid-term projections (for the following three years) to Luxembourg's Ministry of Finance at the end of August 2024. These figures are intended to feed into the process of drawing up the state budget. The previous medium-term projections were published in February 2023.
The full report is available (in French) at https://statistiques.public.lu/fr/actualites/2024/stn34-projections-moyen-terme.html.
