GDP up by 5% year-on-year as pandemic impact lingers
The value of goods and services in Luxembourg’s economy rose by 5.3% in the third quarter of the year, compared to the same three months in 2020, the country’s statistics bureau Statec said on Monday.
Luxembourg’s Gross Domestic Product (GDP) increased in every sector of the country’s economy in the months of July, August and September this year, Statec said.
The commerce, transport, accommodation and catering sectors added the most value in the third quarter of 2021, compared to 2020 at 9.5%, followed by IT and communications at 7.6% and business and rental services at 7.5%.
Luxembourg’s economy is expected to grow by 7% this year and by 3.5% in 2022, Statec said earlier in December.
However, Statec warned that the ongoing pandemic – which prompted the closure of bars, restaurants and cinemas for several months when it first struck in spring 2020 – could still impact the country’s economic performance.
“The recent worsening of the health situation in Luxembourg and among our European neighbours, and consequently the prospect of restrictions on activity, is still significant and remains the main downside risk surrounding these forecasts,” Statec said.
A rise in fuel prices caused inflation to reach 4.5% in Luxembourg in November – up from 3.6% compared with the same month last year, the country’s statistics agency said last week.
Prices of heating oil - used in boilers and water heaters - doubled in the past year while fuel costs were up 6.4% compared with October this year, Statec said. Petrol prices rose 5.2% between October and November, diesel 2.5% and heating oil 3%. Fuel was twice as expensive per litre compared with the same period last year, Statec found.