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Statec

Economy on upward trend with industry and financial sectors rising



Statec indicates a 5.3% overall increase in GDP in Q3 compared to a year ago Photo: Shutterstock

Statec indicates a 5.3% overall increase in GDP in Q3 compared to a year ago Photo: Shutterstock

Confirming Luxembourg’s ongoing economic recovery from the pandemic, Luxembourg’s statistics bureau Statec reported a 0.9% increase in the country’s GDP for the third quarter of 2021 compared to the previous quarter.

The industry sector saw the biggest increase in gross domestic product (GDP) compared to the second quarter of 2021, a rise of 1.8%, according to an initial estimation by Statec. While the business, transport, accommodation and catering sector marked a noticeable improvement with 1.7%. The financial sector, which is the largest in Luxembourg’s economy, also continued to grow, notching a 1.6% increase according to Statec.

Luxembourg fared even better compared to the third quarter of 2020, with Statec indicating a 5.3% overall increase in Q3 compared to a year ago.

Expenditure of households and non-profit institutions increased by 2% in the third quarter of 2021 compared to the previous one. “According to the expenditure approach, Gross Domestic Product (at market prices) is equal to the sum of final uses of goods and services by resident institutional units (actual final consumption, gross capital formation), plus exports, minus imports of goods and services,” indicates Statec.

The fourth quarter’s assessment could mark a downward trend, with the hotel and catering sectors most affected by pandemic-related restrictions which could bring down the country’s GDP. Looking ahead to next year, Statec expressed optimism in a recent report, predicting a stable positive growth in the employment sector while also projecting a decrease in inflation.