IMF Staff Country Reports

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

June 5, 2025

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Format: Chicago

International Monetary Fund. European Dept. "Luxembourg: 2025 Article IV Consultation-Press Release; and Staff Report", IMF Staff Country Reports 2025, 123 (2025), accessed July 19, 2025, https://doi.org/10.5089/9798229011754.002

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Summary

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.

Subject: Economic sectors, Financial institutions, Financial Sector, Labor, Labor markets, Loans, Public debt

Keywords: Europe, Executive board assessment, FATF report, Financial sector, GDP growth, Global, Heightened financial market volatility, Labor market rigidity, Labor markets, Loans, Revenue performance, Volatility warrant

Publication Details

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