The economy of Luxembourg advanced 0.3% quarter-on-quarter in the fourth quarter of 2018, after a downwardly revised 0.5% growth in the prior three month period. Household consumption rose at a softer pace (0.1% vs 1.1%) while general government spending increased 1.7%, the same pace as the previous quarter. Meantime, gross fixed capital formation rebounded (10.1% from -8.6%) while net external demand contributed negatively to growth, as imports advanced 1.8% (vs -0.3 in Q3) and exports went up at a slower 1.2% (vs -0.1 in Q3). On the production side, contractions were seen in finance & insurance (-2.4% vs 1.3%) and in agriculture, forestry and fisheries (-3.4% vs 4.0%) while trade, transport, restaurant & hotels expanded (1.0% vs 0.8%). Year-on-year, the gross domestic product expanded 1.7%, after a downwardly revised 2.8% in the third quarter of 2018. For the whole year, the economy grew 2.6% compared to 1.5% expansion in 2017. GDP Growth Rate in Luxembourg averaged 0.84 percent from 1995 until 2018, reaching an all time high of 6.60 percent in the fourth quarter of 1995 and a record low of -4.20 percent in the first quarter of 1996.
GDP Growth Rate in Luxembourg is expected to be 0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Growth Rate in Luxembourg to stand at 0.50 in 12 months time. In the long-term, the Luxembourg GDP Growth Rate is projected to trend around 0.60 percent in 2020, according to our econometric models.