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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 (2018)
58.9 bln EUR  (+0.06%)
Nominal GDP per Capita (2018)
96,700 EUR  (+0.04%)
Real GDP Growth (2018)
2.6 %  (2017: 2.3 %)

According to Eurostat, nominal GDP of Luxembourg in 2018 was 58.9 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 (2008 - 2018). In 2018 real GDP growth was 2.6% which was above the Euro Area average (1.9%) and above the European Union average (2.0%). Real GDP growth in 2019 - 2024 are IMF's estimates.

Real GDP Growth in Luxembourg.

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

In 2018, nominal GDP per capita in Luxembourg was 96,700 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 132.7% over the past 10 years (2007 - 2017). GDP per capita at PPP in 2018 - 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 (Apr 2019)
0.3 % (unchanged)
CPI, YoY (Apr 2019)
2.2 %  (Mar 2019: 2.4 %)
CPI, Year Average (2018)
2.0 %  (2017: 2.1 %)

According to Eurostat, inflation rate in Luxembourg in 2018 expressed as annual percentages of average consumer prices was 2.0% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Inflation rates in 2019 - 2024 are IMF's estimates.

Inflation Rate in Luxembourg.

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

Unemployment Rate

Unemployment Rate (2018)
5.4 %  (2017: 5.6 %)

According to Eurostat, unemployment rate in Luxembourg in 2018 was 5.4% which was below the Euro Area average (8.2%) and below the European Union average (6.8%). Unemployment rates in 2019 - 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 (Mar 2019)
0.17 %  (Feb 2019: 0.26 %)

According to Eurostat, government bond yield in Luxembourg in March 2019 was 0.17%, compared to 0.26% in February 2019.

Government bond yield of Luxembourg.

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

Credit Ratings (as of May 2018)

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

Luxembourg has sovereign credit ratings assigned by 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.