Credit: STATEC

STATEC, Luxembourg's national statistical office, has confirmed that the country's Gross Domestic Product (GDP) rose 0.2% compared to the previous quarter and 1.2% compared to the third quarter of 2023.

The annual changes in GDP volume are therefore revised as follows: the second quarter of 2024 is revised to -0.1% instead of +0.3%, the first quarter of 2024 is revised to -0.7% instead of -0.2% and the fourth quarter of 2023 is revised to -0.5% instead of -0.6%.

The GDP growth rate of 1.5% projected in STATEC’s forecasts from last September, which was also included in the forecasts for the State Budget, now seems unattainable. By the end of the third quarter of 2024, the growth carryover stood at just 0.3%. Updated forecasts will be published on December 20 with the release of the Economic Outlook Note 2-24.

This figure means that if seasonally adjusted GDP remains unchanged in the fourth quarter (Q4) compared to the third quarter (Q3), overall GDP growth for 2024 will amount to 0.3%. This excludes any revisions that might occur in the interim, whether for quarterly indicators or annual accounts.

STATEC publishes the first estimate of the Gross Domestic Product (GDP) for the third quarter of 2024, as well as revised figures for the previous quarters. The quarterly series of GDP and the main aggregates are adjusted for seasonal variations.

In 2024 Q3, the added value of financial and insurance activities decreased by 1.7% compared to the previous quarter. The evolution of the other branches, in order of importance in the GDP, is as follows:"Public administration, education and health" +0.6%, "Business services and rental" +1.6%, "Trade; transport; accommodation and catering” +1.3%, “Real estate activities” +0.6%, “Construction” -0.2%, “Information and communication” -2.4% and “Industry, including energy and water distribution” -2.3%.

Compared to 2024 Q2, final consumption expenditure by households and non-profit institutions serving households increased by 1.7% and that of general government increased by 0.8%. Gross capital formation increased by 0.5%. Exports decreased by 0.1% and imports increased by 0.7%.