FX.co ★ Luxembourg GDP contracts 1.0% in Q1

In the first quarter of 2025, Luxembourg's economy experienced a 1.0% decline from the previous quarter, reflecting a significant turnaround from the downwardly revised 1.3% growth witnessed in the final quarter of the previous year. This contraction can largely be attributed to decreases in household consumption, which fell by 0.4% compared to a previous rise of 0.4%, and exports, which dropped by 0.4% following a 1.7% increase. Additionally, there was a marked slowdown in the growth of imports, increasing only by 0.1%, down from 1.7%. Conversely, government spending saw an upturn, accelerating to 1.2% from 0.9%. On a year-over-year basis, GDP fell by 0.4% in the first quarter of 2025, a stark contrast to the 1.9% growth recorded in the preceding quarter.