Luxembourg’s economy is estimated to have grown by 2.7% year-on-year in the the third quarter of 2025, national statistics office Statec said on Friday, releasing estimates and revising down growth figures in previous quarters.
In the third quarter of 2025, Luxembourg’s GDP was also 1.1% higher than in Q2, Statec said, indicating a modest revival of the national economy.
Value added across all sectors rose by 1.5% in the third quarter of 2025 compared to the previous quarter. The largest contribution to this increase was made by financial and insurance activities with a share of 0.6 percentage points, followed by services in the trade, transport, accommodation and food service activities sector, as well as in the public sector, including public administration, education and health.
Capital expenditure (gross fixed capital formation) recorded a particularly strong increase in the third quarter, mainly due to satellite purchases, with a corresponding increase in goods imports. Investments in metal products, and machinery excluding means of transport, also made a significant contribution to overall growth.
On the other hand, some sectors recorded a decline, with the most negative contributions coming from business-related services and construction.
Statec also revised down previous growth estimates. Annual growth in the second quarter of 2025 came in at -0.7% instead of the previous estimate of -0.2%, while in the first quarter of the year, the figure was changed to -2.6%, from -1.9%. The fourth quarter of 2024 remained unchanged at 0.1% growth.
Luxembourg GDP grows 0.6% in Q2 but shrinks year-on-year
Following a slight decline in the previous two quarters, private consumption recovered in Q3 of 2025, particularly as a result of spending on catering services, equipment (including furniture and household appliances), transport and clothing.
As in the previous quarters, public consumer spending remained dynamic. The exchange of services also made a positive contribution to GDP growth, both in financial services and non-financial services, Statec said.
(This article was published by the Luxemburger Wort. Machine translated, with editing and adaptation by Alex Stevensson.)
