"Our forecasts show growth of around 2% for this year but we are still waiting for the European Central Bank to signal a reduction in interest rates," Serge Allegrezza told RTL on Thursday.

On Wednesday, STATEC published a report on Luxembourg's quality of life and well-being, highlighting challenges such as rising house prices, risk of poverty and a decline in residents' overall satisfaction levels. Director Serge Allegrezza appeared on RTL Radio to discuss the outcome of the report.

"Economic growth is not enough," he said. "There also needs to be growth in terms of quality of life. GDP and GDP-well-being are complementary and linked, as GDP generates income which in turn increases our well-being." In the future, Allegrezza says the GDP well-being rate can be used to develop policies, theoretically measuring it alongside the GDP itself, as is the case in other countries. But it depends how far the government chooses to invest in this, as more reliance would require more precise data on a more regular basis.

21 indicators of well-being 

GDP well-being is made up of 21 indicators, which include factors such as income, inequality, poverty, employment, housing prices, life expectancy, education, but also environment, where noise pollution and general pollution are taken into account.

"Physical security also plays an important role," Allegrezza explained. "If numerous offences or acts of vandalism are committed in an area, this will have a knock-on effect on its residents and their well-being."

The GDP well-being report shows that well-being increased in Luxembourg until 2021, but then fell. Allegrezza attributes this decline to increasing housing costs. "However, the population's physical security has also dropped, following an increase in the number of crimes reported to police."

In addition, the pandemic has left lasting effects on residents and their subjective well-being. The STATEC director said that people felt more anxious and more lonely as a result of the pandemic and the subsequent war in Ukraine, but that this appeared to be declining in 2023.

Men are happier than women

The most recent World Happiness Report, published on Wednesday, indicated that income represented the main factor for well-being, closely followed by employment, being in a relationship or having a family, friendships, and good relationships with neighbours and family. In very general terms, the report showed that men are happier than women, while "very young or old people are happier than those in mid-life. People in this age category tend to be more stressed, no matter where in the world they live," Allegrezza concluded.