The National Institute of Statistics and Economic Studies (STATEC) has noted a modest upturn in the Eurozone economy, though it remains well below the typical 3% growth rate.

Europe's competitiveness has been adversely affected compared to the US, primarily due to high energy prices, which also impact Luxembourg. STATEC forecasts Luxembourg's GDP to rise by 1.5% in 2024, with expectations of a 3% increase in 2025, contingent on the European Central Bank's continued reduction of interest rates.

The nominal deficit of state finances stands at 2%, a level deemed reasonable by STATEC, despite recent measures aimed at the housing market and the electricity price cap. Notably, adjustments to the tax table equivalent to 2.5 wage indexations were announced during the Prime Minister's recent state of the nation address but were not factored into the latest calculations.

State treasury revenues have seen sluggish growth at 4%, primarily due to slower wage bill growth and tax table adjustments by four wage indexations in January. However, revenues are expected to increase in 2025, with a projected increase of 6%.

RTL

© Didier Weber / RTL