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Statec predicts 6.7% unemployment for 2014
Economics

Statec predicts 6.7% unemployment for 2014

10.05.2012 From our online archive
In its economic activity prognosis Statec foresees a “quasi stagnation” for the Luxembourg economy with no real improvement until 2014.

(CS) In its economic activity prognosis Statec foresees a “quasi stagnation” for the Luxembourg economy with no real improvement until 2014.

While the final numbers for 2011 were revised to the better from earlier predictions, Luxembourg's growth volume rested at 1.6 percent, making it one of the weakest years since the 2008 crisis.

The negative trend in Luxembourg's financial sector, as well as manufacturing industries and construction is set to continue in 2012 amid an overall fragile economic climate, according to Statec.

Still, the statistics agency stated in its report that the situation could be a lot worse were it not for the protected sectors, including administration, education and social services.

Inflation to decrease, pending fuel prices

Unemployment will remain high according to Statec, which predicts the 2011 all-time high of 6 percent to climb further to around 6.7 percent in 2014. Light improvements might be seen in 2015 the study predicts.

Inflation meanwhile, which peaked at 2.7 percent in March this year, is likely to decrease to around 2 percent in 2012 and 2013, before increasing again. However, Statec warns that the inflation prognosis is based on stable fuel prices.

The overall predictions for the development of the Luxembourg economy are equally based on a slight recession (-0.3 percent) in the eurozone.

Statec highlighted that the predictions for 2012 (1 percent) and 2013 (2.4 percent) were much lower than 2014/15 (3.8 percent), citing that conditions and risk factors were not the same, adding that predictions were necessarily uncertain.