The pandemic's effects may still be reverberating around society, but Luxembourg's economy has proved resilient, according to the latest Statec report.
The government statistics service noted economic growth of around 7% in 2021, while forecasts for 2022 expect growth of 3.5%. Public finances have also bounced back, while the unemployment rate has observed a downward trend this year.
Confidence in Luxembourg remains high, despite supply chain difficulties. For non-financial services, the outlook remains somewhat favourable, but for the hospitality sector, hit hard by coronavirus lockdowns and restrictions, it's a different story. Financial services, in contrast, benefit from strong activity in the stock exchanges.
All projections show that inflation is likely in the new year, while the next indexation could take place in the last quarter of 2022. Covid remains the biggest threat to the economy, with infections soaring, new variants, and new restrictions likely to reduce economic activity, according to Statec.
Read the full Statec report here.
