Economy still growing, but slower


 Olivier Minaire (archives)

Road to recovery: Luxembourg’s GDP grew 4.9% during the first quarter, compared to the same period last year, STATEC said Tuesday.

GDP during the first quarter of the year also grew 0.1% over the fourth quarter of 2010. However, these are relative declines in economic recovery, as the fourth quarter 2010 growth was 5.7% over the fourth quarter of 2009, while the fourth quarter of 2010 gained 2.8% over the third quarter of 2010, according to STATEC, the Grand Duchy’s official statistics bureau.

The largest same-period annual gains were in the industry and energy (18.2%), construction (11.8%) and trade, transport and communications (7.7%) sectors, while financial services contracted (-2.0%), the agency said.

The highest quarter-on-quarter growth came in construction (8.8%), agriculture, livestock and fisheries (7.7%), and industry and energy (3.7%), while financial services shrank sharply (-4.1%).

On Monday, Ernst & Young Luxembourg forecast euro zone GDP growth would be two percent this year and 1.6% in 2012, meaning unemployment rates would remain high.