Luxembourg: 2025 Article IV Consultation-Press Release; and Staff Report

International Monetary Fund

No 2025/123, IMF Staff Country Reports from International Monetary Fund

Abstract: Luxembourg has strong economic fundamentals and policy buffers, including low public debt. The large financial sector has weathered well the recent shocks and the 2024 FSAP found it sound and well diversified. But growth in the past years has been lackluster hampered by a loss in confidence in the housing market, high labor costs, and low productivity growth. Demand-focused fiscal policies helped smooth exogenous shocks but were less effective in creating momentum in the economy.

Keywords: FATF report; executive board assessment; revenue performance; heightened financial market volatility; volatility warrant; GDP growth; labor market rigidity; Labor markets; Financial sector; Loans; Global; Europe (search for similar items in EconPapers)
Pages: 67
Date: 2025-06-05
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