The trade deficit in Luxembourg widened to EUR 0.60 billion in October 2018 from EUR 0.50 billion in the same month of the previous year. It is the widest trade gap since December last year. Imports grew at a faster 11.4 percent to EUR 1.8 billion, the highest value since March 2017, amid stronger purchases of mineral fuels, lubricants (62%) and transport equipment (21.5%). In contrast, imports of machinery & equipment fell 5.3 percent. Among major trading partners, purchases advanced mainly from Belgium (21.2%), Germany (9.2%) and France (8.7%). Meantime, exports advanced 8.2 percent to EUR 1.2 billion, mainly due to higher shipments of manufactured articles & metals (9.8%); other manufactured articles (11.7%) and chemicals and chemical products (29.1%). Sales increased mainly to Germany (2.1%), France (3.9%) and Belgium (20.4 percent). Balance of Trade in Luxembourg averaged -0.34 EUR Billion from 1988 until 2018, reaching an all time high of -0.03 EUR Billion in May of 1989 and a record low of -1.06 EUR Billion in September of 2012.
Balance of Trade in Luxembourg is expected to be -0.62 EUR Billion by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Balance of Trade in Luxembourg to stand at -0.54 in 12 months time. In the long-term, the Luxembourg Balance of Trade is projected to trend around -0.94 EUR Billion in 2020, according to our econometric models.