The statistics office has maintained its projection of 3% economic growth for 2018 and 2019. The press release distributed on Tuesday also predicted a continued decrease in unemployment followed by stabilisation. The statistics service predicts that the unemployment rate will fall to 4.6% by 2022 due to the dynamic job market in Luxembourg.
For 2019, Statec predicts an inflation rate of 1.7%. In 2018, the inflation rate was at 1.5%, but it is due to rise this year and was recorded at 1.8% for January of 2019.
The statistics service also predicts the next salary indexation in the fourth quarter of 2019. Salaries will be adjusted in line with the cost of living. However, the introduction of free public transport in March 2020 is likely to have an impact on inflation, and is expected to lead to an decrease thereof. The statistics service has not yet integrated other measures that may affect inflation, such as free 'maison relais' daycare, excise increases, and VAT reduction on certain products.
