GDP grew sharply in the third quarter in Luxembourg, a trend seen across the Eurozone.

Though there was marked improvement in the euro area, seeing markets recovering quickly in Q3, Luxembourg is expected to experience a similar upturn.

However, the outlook for year-end is less upbeat, with the renewed rise in coronavirus infections leading to new restrictions and a partial lockdown, although these are not expected to weigh as much on activity as the full lockdown experienced last spring.

With regard to inflation, the Statec considers that the next index tranche should not be triggered until 2022.

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