Luxembourg Economy Expected to Gradually Recover

Luxembourg’s economy is expected to slowly regain momentum over the next few years, according to new medium-term projections published by the national statistics office STATEC. After relatively modest growth in recent years, the country’s economic activity is forecast to gradually strengthen toward the end of the decade.

The report estimates that Luxembourg’s GDP will grow by around 1% in 2025 and 1.7% in 2026, before stabilising at an average growth rate slightly above 2% by 2029. This improvement is expected despite a challenging international economic environment and slower demand in parts of the global market.

Economic growth is likely to be supported mainly by the services sector, while the financial sector is expected to continue expanding at a moderate pace. Household consumption is projected to grow steadily, and investments could increase by around 5% per year on average in the coming years.

The labour market is also expected to gradually improve. Employment growth could rise to about 2% by 2029, while the unemployment rate may decline to around 5.2% as economic activity strengthens. At the same time, population growth is expected to pick up again due to renewed migration.

Read more:
https://statistiques.public.lu/fr/actualites/2026/stn07-projections-moyen-terme.html

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