Luxembourg's economy is likely to grow more slowly this year than initially expected, according to the latest report from the National Institute of Statistics and Economic Studies (STATEC).
The economic recovery anticipated at the beginning of the year is now described as "threatened", with STATEC adjusting its growth forecast for 2024 down to 1.5%. In January, the institute had predicted a growth rate of 2%.
Recent surveys within the Eurozone reveal a decline in economic confidence, a trend that is also evident in Luxembourg, particularly in the industrial, commercial, and other non-financial service sectors. Despite this, the construction sector remains relatively optimistic, though this follows a period of significant decline in recent years.
STATEC attributes the threats to growth to ongoing geopolitical crises in Ukraine and the Middle East, which show no signs of resolution. Additionally, they have concerns about a potential recession in the United States and a slowdown in China's economic growth.
Looking ahead to 2025, STATEC still anticipates a growth rate of 3% for the Grand Duchy.
