Despite good performance the first half of 2019--including high GDP growth at 2.8%, attributed to good non-financial services performance, despite the financial sector lagging--a slowdown is on the horizon. In its Tuesday statement, Statec anticipates growth next year at 2.4%.

While the unemployment is anticipated to remain stable around 5.3%, total domestic employment growth should see a slowdown from 3.9% to an anticipated 3.2% in 2020. 

“Negative cyclical signals are multiplying,” the Luxembourg statistics agency stated, citing international tensions resulting from lower international transactions, industrial production and investment--a slowdown bound to impact the euro zone, it adds. 

As RTL reports, Statec director Serge Allegrezza, highlighted the US trade wars, including the new front which sees economic sanctions against EU countries. He said, “If they don't agree, we also know that stock exchanges are likely to fall again. This has a negative impact not only on the global economy, but also here in Luxembourg.”