The National Institute of Statistics and Economic Studies (STATEC) assesses that Luxembourg's economy has performed well during the second semester of the year.
STATEC further expects the national economy to report significant annual growth by the end of 2021. However, a rise in new Covid cases and an inflation wave caused by energy price fluctuations are a cause for concern.
The financial sector was able to benefit from positive developments on the stock market this year. GDP is expected to further grow in the second half of the year and may even increase to more than 6%.
However, much of this trend can be linked back to the difficult times at the beginning of 2020 when the pandemic first hit the country. Nevertheless, impacts from the Covid-19 crisis were less significant in the Grand Duchy than in the rest of the Eurozone.
The next index cut is expected to be made either at the end of next year or during the first semester of 2023.