The economy of Luxembourg advanced 0.6 percent on quarter in the third quarter of 2018, after an upwardly revised 0.1 percent growth in the prior three month period. It is the quickest expansion since the fourth quarter of 2017, as household consumption (0.7% vs 0.6% in Q2) and government spending (1.5% vs 0.2%) rose faster. Also, net external demand contributed positively to growth, as exports advanced 1.6 percent (vs 1.9% in Q2) and imports went up at a slower 1.5 percent (vs 1.2% in Q2). In contrast, fixed investment declined further (-2.8 percent vs-0.5 percent). On the production side, significant recoveries were seen in finance & insurance (0.9% vs -2.5%); trade, transport, restaurants & hotels (0.8% vs -0.1%); business services (0.5% vs -0.1%) and information and communication services (6.6% vs -5%). Year-on-year, the gross domestic product expanded 3.1 percent, after an upwardly revised 3.3 percent rise in the second quarter of 2018. GDP Growth Rate in Luxembourg averaged 0.85 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 0.70 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 0.40 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.