In its latest 'Conjuncture Flash', the National Institute of Statistics and Economic Studies (STATEC) reviewed the tripartite measures and found that they positively influence the country's economy.

The government has budgeted €1.7 billion over two years for the implementation of the support measures decided at the last tripartite meeting.

In its latest conjuncture flash, the STATEC found that these measures have a positive impact on Luxembourg's economy. The country's gross domestic product is projected to increase 2% this year and 4% in 2023.

The priciest of the tripartite measures is the tax credit designed to curb energy costs, estimated to amount to €495 million. The cap on gas prices will cost €470 million.

The combined effect of the individual measures is projected to increase people's buying power by 1.5% next year.

Grocery prices have a major impact on inflation as they steadily went up over the course of the year. Meat, bread, dairy, eggs, and vegetables recorded the biggest increase.

The STATEC also found that loan interests continue going up. In September, rates for households recorded a year-over-year increase from 2.6% to 3.1%. Fixed rates for real-estate loans over ten years recorded an average increase of 3%.

Interesting to note is that the number of new car registrations has so far decreased by close to 7%. Electric car sales have been found to stagnate at present. In October, only 3% of all vehicles registered in the Grand Duchy were purely electric.