Luxembourg Economy Stagnates in Q1

2026-06-05 09:10 By Mariene Camarillo 1 min. read

Luxembourg’s economy recorded a flat quarter-on-quarter reading in the first quarter of 2026, unchanged from the previous quarter.

The stagnation was mainly driven by a decline in household consumption (-0.6% vs 0.6% in Q4), while growth in public spending slowed (0.8% vs 1.1%).

Net trade also weighed on the economy, as imports fell at a slower pace than exports.

Meanwhile, the weakness was partly offset by a sharp recovery in fixed investment (5.2% vs -12.0%).

On the production side, agricultural activity accelerated (2.5% vs 0.5%), while construction (2.4% vs -0.5%), commerce (1.7% vs -1.4%), and real estate (0.7% vs -0.4%) returned to growth.

On an annual basis, GDP grew 1.6% in Q1, easing from a downwardly revised 2.1% expansion.



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Luxembourg Economy Stagnates in Q1
Luxembourg’s economy recorded a flat quarter-on-quarter reading in the first quarter of 2026, unchanged from the previous quarter. The stagnation was mainly driven by a decline in household consumption (-0.6% vs 0.6% in Q4), while growth in public spending slowed (0.8% vs 1.1%). Net trade also weighed on the economy, as imports fell at a slower pace than exports. Meanwhile, the weakness was partly offset by a sharp recovery in fixed investment (5.2% vs -12.0%). On the production side, agricultural activity accelerated (2.5% vs 0.5%), while construction (2.4% vs -0.5%), commerce (1.7% vs -1.4%), and real estate (0.7% vs -0.4%) returned to growth. On an annual basis, GDP grew 1.6% in Q1, easing from a downwardly revised 2.1% expansion.
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