IMF: Luxembourg Managing COVID-19 Pandemic "Relatively Well"

In its annual report, the International Monetary Fund (IMF) concluded that Luxembourg has "managed the COVID-19 pandemic relatively well".

The IMF stated on Monday that Luxembourg has got through the pandemic "relatively well" as a result of "unprecedented policy support" and the quick shift to teleworking.

The Washington-based institute thus projected a rebound in output for Luxembourg in 2021; following a 1.3% fall in GDP in 2020, an increase of around 4.5% is expected this year. The IMF added that the Grand Duchy should continue to pursue a "supportive" fiscal policy which targets "the most vulnerable" to avoid exacerbating inequalities and recommended that policy support should focus on "greening the economy" but also "maintaining high levels of public investment".

The IMF warned that increasing risks in the financial sector should be "closely monitored" and that structural policies should "focus on reducing scarring effects in the labour market and improving inclusiveness in the housing market". 

The full conclusions for Luxembourg in the IMF annual report are detailed at www.imf.org/en/News/Articles/2021/03/12/mcs031521-luxembourg-staff-concluding-statement-of-the-2021-article-iv-mission.