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Economy and Banking Sector of Luxembourg

National Currency

Euro (EUR)

Luxembourg joined the Euro Area on 1 January 1999.

GDP

Nominal GDP (2019)
63.5 bln EUR  (+0.07%)
Nominal GDP per Capita (2019)
102,200 EUR  (+0.05%)
Real GDP Growth (2019)
2.3 %  (2018: 2.6 %)

According to Eurostat, nominal GDP of Luxembourg in 2019 was 63.5 bln EUR.

Luxembourg outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.1% over the past 10 years (2009 - 2019). In 2019 real GDP growth was 2.3% which was above the Euro Area average (1.2%) and above the European Union average (1.5%). Real GDP growth in 2020 - 2024 are IMF's estimates.

Real GDP Growth in Luxembourg.

Chart 1. Real GDP Growth in Luxembourg. Source: Eurostat, International Monetary Fund.

In 2019, nominal GDP per capita in Luxembourg was 102,200 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 135.7% over the past 10 years (2008 - 2018). GDP per capita at PPP in 2019 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Luxembourg; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Luxembourg; European Union = 100.

Inflation Rate

CPI, MoM (May 2020)
-0.3 %  (Apr 2020: -0.8 %)
CPI, YoY (May 2020)
-1.6 %  (Apr 2020: -0.8 %)
CPI, Year Average (2019)
1.6 %  (2018: 2.0 %)

According to Eurostat, inflation rate in Luxembourg in 2019 expressed as annual percentages of average consumer prices was 1.6% which was above the Euro Area average (1.2%) and above the European Union average (1.5%). Inflation rates in 2020 - 2024 are IMF's estimates.

Inflation Rate in Luxembourg.

Chart 3. Inflation Rate in Luxembourg. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2019)
5.6 %  (2018: 5.4 %)

According to Eurostat, unemployment rate in Luxembourg in 2019 was 5.6% which was below the Euro Area average (7.6%) and below the European Union average (6.3%). Unemployment rates in 2020 - 2024 are IMF's estimates.

Unemployment Rate in Luxembourg.

Chart 4. Unemployment Rate in Luxembourg. Source: Eurostat, International Monetary Fund.

Government Bond Yield

Government Bond Yield (Apr 2020)
-0.25 %  (Mar 2020: -0.36 %)

According to Eurostat, government bond yield in Luxembourg in April 2020 was -0.25%, compared to -0.36% in March 2020.

Government bond yield of Luxembourg.

Chart 5. Government bond yield of Luxembourg. Source: Eurostat.

Credit Ratings (as of Jul 2020)

Fitch
AAA (highest credit quality), outlook stable
Moody's
Aaa (prime), outlook stable
Scope
AAA (prime), outlook stable

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 June 2020, Scope Ratings for July 2020.