Economy to rise by 4% in first quarter of 2022
Luxembourg’s economy could increase by 4% in the first quarter of 2022 compared to the same period last year, the country’s statistics office Statec said on Tuesday.
Real Gross Domestic Product (GDP), which measures the total value of goods and services in an economy, increased by 4% year-on-year, Statec said.
Compared to the last quarter of 2021, real GDP increased by 1.2%, the agency added. The figures are preliminary and are likely to be revised later in the year.
Last month, Luxembourg slashed its growth forecast for 2022 in half as the war in Ukraine caused a slowdown in the economic recovery from the pandemic, after the country's economy grew by 6.9% last year.
Luxembourg's GDP was predicted to expand by just 1.4% this year, down from an earlier forecast of 3.5%, Finance Minister Yuriko Backes said in parliament at the time, citing Statec figures.
"The consequences of the Russian invasion of Ukraine risks not only breaking the momentum of the recovery, but because of it we have to expect a clear deterioration of the public finances in the short term", she said.
Russia’s invasion of Ukraine and sanctions imposed in response have darkened the outlook for the global economy by sending energy prices surging and straining supply chains.
The Euro area has posted a record overall 8.1% inflation rate for the first quarter of the year.