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Economy set to rise by nearly 5% in first quarter of 2021

Economy set to rise by nearly 5% in first quarter of 2021

by Kathryn OGLESBY 14.06.2021 From our online archive
Figures are preliminary GDP estimates
Kirchberg, Luxembourg's financial district
Kirchberg, Luxembourg's financial district
Photo credit: Anouk Antony

Luxembourg’s economy could increase by nearly 5% in the first quarter of 2021, compared to the same three months a year ago, the country’s statistics bureau Statec said on Monday.

The country's Gross Domestic Product – GDP – which measures the total value of goods and services in an economy, increased by 4.9% in the first quarter on an annual basis. Compared to the last quarter of 2020, it rose by 1.4%.

The commerce, transport and hospitality sectors rose by 4.4% on teh year, finance and insurance by 2.9%, real estate by 1% and construction by 0.9%.

The figures released today are a preliminary estimate of GDP levels and are likely to be revised later in the year.

The International Monetary Fund (IMF) praised Luxembourg for its handling of the economic fallout from the health crisis in May this year. The Washington-based institution credited the government for spending 18.6% of its GDP to prop up the economy, calling it a "rapid, targeted and appropriate" response, according to a press release from the Economy Ministry on Wednesday.

Luxembourg's economy contracted by just 1.3% last year, significantly less than the 4.5% decline estimated previously by Statec, thanks to a quick shift to working from home, the IMF said. The Fund expects Luxembourg's economy to grow by 4% this year, it said at the time.

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