Luxembourg joined the Euro Area on 1 January 1999.
According to Eurostat, nominal GDP of Luxembourg in 2021 was 73.3 bln EUR.
Luxembourg outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.7% over the past 10 years (2011 - 2021). In 2021 real GDP growth was 6.9% which was above the Euro Area average (5.3%) and above the European Union average (5.4%). Real GDP growth in 2022 - 2027 are IMF's estimates.
Chart 1. Real GDP Growth in Luxembourg. Source: Eurostat, International Monetary Fund.
In 2021, nominal GDP per capita in Luxembourg was 114,370 EUR.
Luxembourg has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 129.5% over the past 10 years (2011 - 2021). GDP per capita at PPP in 2022 - 2027 are IMF's estimates.
Chart 2. GDP Per Capita at Purchasing Power Parity in Luxembourg; European Union = 100.
According to Eurostat, inflation rate in Luxembourg in 2021 expressed as annual percentages of average consumer prices was 3.5% which was above the Euro Area average (2.6%) and above the European Union average (2.9%). Inflation rates in 2022 - 2027 are IMF's estimates.
Chart 3. Inflation Rate in Luxembourg. Source: Eurostat, International Monetary Fund.
According to Eurostat, unemployment rate in Luxembourg in 2020 was 6.8% which was below the Euro Area average (8.0%) and below the European Union average (7.2%). Unemployment rates in 2021 - 2027 are IMF's estimates.
Chart 4. Unemployment Rate in Luxembourg. Source: Eurostat, International Monetary Fund.
According to Eurostat, government bond yield in Luxembourg in February 2022 was 0.40000%, compared to -0.04000% in January 2022.
Chart 5. Government bond yield of Luxembourg. Source: Eurostat.
Luxembourg has sovereign credit ratings assigned by American credit rating agencies Fitch and Moody's: the rating set by Fitch is AAA (highest credit quality), outlook stable; the rating set by Moody's is Aaa (prime), outlook stable. Scope Ratings, the European rating agency, rated Luxembourg as AAA (prime), outlook stable.
Fitch and Moody's rating data are provided for September 2023, Scope Ratings for January 2025.
