Conjoncture Flash December 2017

The economic climate is improving. While growth has been revised downwards for 2015 and 2016, the underlying trends for Luxembourg’s main economic indicators remain favourable as 2018 approaches. The significant strengthening in economic momentum in the eurozone should also provide better external support. STATEC therefore expects Luxembourg GDP to grow by almost 3.5% in 2017 and 4.5% in 2018.

• Manufacturing: Recovery confirmed

• Construction: Output recovers after a difficult start

• Financial sector 1/2: Banking stocks follow the general trend

• Financial sector 2/2: UCIs benefit from favourable market trends

• Labour market: Temporary slowdown in employment in the 3rd quarter

• Inflation: Downturn in inflation due to social welfare money vouchers

• International: Very favourable signals for the eurozone