The economy of Luxembourg advanced 0.3% on quarter in the first three months of 2019, after an upwardly revised 0.6 percent growth in the previous period. It was the weakest expansion since Q2 2018. Household consumption (0.2% vs 0.7% in Q4) and government spending (0.2% vs 1.7%) slowed sharply and gross capital formation shrank (-4.7% vs 4.3%). Meanwhile, net external demand contributed negatively to growth, as exports fell 0.4% (vs 1.0% in Q4) and imports decreased 0.5% (vs 1.6% in Q4). Year-on-year, the GDP grew 1.6%, the least since Q3 2017, compared to 1.7% in the previous period. GDP Growth Rate in Luxembourg averaged 0.83 percent from 1995 until 2019, reaching an all time high of 6.70 percent in the fourth quarter of 1995 and a record low of -4.40 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.