Luxembourg Current Account Deficit Narrows in Q2

Luxembourg’s current account deficit narrowed sharply to EUR 436.5 million in the second quarter of 2026 from EUR 1,482.8 million in the corresponding quarter of the previous year. The goods account surplus widened to EUR 327.7 million from EUR 152.8 million, while the services account surplus also increased to EUR 7,684.2 million from EUR 5,172.0 million in Q2 2025. On the other hand, the primary income deficit expanded to EUR 8,452.8 million from EUR 6,793.7 million, driven largely by wider deficits in both employee income (EUR 3,828.5 million vs EUR 3,676.7 million) and investment income (EUR 4,624.2 million vs EUR 3,116.9 million), while the secondary income deficit grew to EUR 20.1 million from EUR 13.9 million.

Luxembourg’s current account surplus narrowed to EUR 1,345.4 million in the first quarter of 2026 from EUR 1,664.1 million in the corresponding quarter of the previous year. The goods account surplus shrank by EUR 178.4 million to EUR 481.6 million from EUR 660 million. At the same time, the primary income shortfall grew to EUR 6,424.9 million from EUR 5,569.5 million, driven largely by increases in both the employee income (EUR -3,715.3 million vs EUR -3,614.4 million) and investment income (EUR -2,709.5 million vs EUR -1,955.1 million). Meanwhile, the services account surplus expanded to EUR 7,377.7 million from EUR 7,329.6 million.

Luxembourg’s current account posted a deficit of EUR 47 million in the last quarter of 2025, narrowing sharply from EUR 725 million in the same period last year. The decrease was driven by a bigger surplus recorded by the goods account, which widened to EUR 417 million from EUR 400 million in Q4 2025. Additionally, the services account surplus expanded to EUR 7,851 million from EUR 7,628 million, while the shortfall in the primary income account decreased to EUR 8,327 million from EUR 8,737. Meanwhile, the secondary income account posted a surplus of EUR 12 million, shifting from a deficit of EUR 15 million. For 2025 as a whole, the country’s current account surplus widened to EUR 29,202 million from EUR 28,899 million last year.