{
  "title": "IMF Executive Board Concludes 2019 Article IV Consultation with Luxembourg",
  "publication": "IMF News, May 13, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation",
  "canonical": "https://www.imf.org/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation",
  "overlayPath": "/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation/index.md",
  "summary": "Date: May 13, 2019",
  "publishDate": "2019-05-13",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Date: May 13, 2019\n- On May 8, 2019, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Luxembourg.\n- Recent performance: GDP growth reached 2.6 percent in 2018, above the EU average.\n- Fiscal position: fiscal surplus estimated at about 2.4 percent of GDP in 2018.\n- Labor market: unemployment at record post-crisis lows; confidence indicators well above long-term averages.\n- Current assessment: the economy is currently operating close to its potential."
    },
    {
      "heading": "Growth prospects and risks",
      "content": "- Growth drivers:\n  - Strong private consumption.\n  - Positive contribution of the external sector.\n  - Sound economic policies, a qualified workforce, and favorable global economic conditions.\n- Downside risks identified:\n  - Weaker-than-expected global growth.\n  - A disorderly Brexit.\n  - Changes in international tax rules.\n  - A sharp tightening of global financial conditions.\n  - Domestic risk: rising real estate prices could exacerbate already elevated household indebtedness and increase affordability challenges."
    },
    {
      "heading": "Executive Board Assessment — Findings and recommendations",
      "content": "- Commendations:\n  - Authorities praised for sound economic policies supporting a favorable growth outlook.\n  - Strong fiscal position and low public debt lauded.\n  - Continued commitment to implement European and global tax transparency and anti‑tax avoidance initiatives commended.\n  - Progress in implementing the 2017 Financial Stability Assessment Program recommendations welcomed.\n  - Authorities commended for strengthening AML/CFT legislation and finalizing their first National Risk Assessment.\n- Fiscal policy guidance:\n  - Directors encouraged the authorities to maintain prudent fiscal policies and to maintain adequate buffers.\n  - Directors welcomed fiscal plans aimed at lifting the economy’s potential and making growth more inclusive by increasing public investment and introducing more growth‑friendly, equitable, and “green” taxation.\n  - Directors noted the need to quantify revenue risks arising from the changing international tax environment and consider mitigating measures.\n- Financial sector resilience:\n  - Need to further enhance oversight of the highly interconnected financial sector.\n  - Continue to strengthen supervision of banks’ large cross‑border exposures.\n  - Complete resolution plans for less systemic banks and implement Luxembourg’s component of the euro area credit register.\n  - In the investment fund sector, system‑wide supervision and cooperation with relevant jurisdictions should be further enhanced.\n  - Recent measures to enhance macroprudential surveillance welcomed; Directors called for close monitoring of real estate market developments and vulnerabilities from high household indebtedness.\n  - Recommendation to alleviate housing supply constraints and expand the macroprudential policy toolkit, introducing borrower‑based mortgage lending limits.\n- Pensions and labor market:\n  - Luxembourg’s pension system is sound over the near term, but further reforms have merit to ensure long‑term sustainability.\n  - Given long lags of pension reforms, engage with key stakeholders in a timely manner, taking into account intergenerational equity and tradeoffs of various reform options.\n  - Key structural gaps need to be addressed to boost economic potential and make growth more inclusive.\n  - While youth and low‑skilled have benefited most from recent strong job creation, more needs to be done to tackle structural unemployment and low elderly labor market participation."
    },
    {
      "heading": "Selected economic indicators (2014–19)",
      "content": "- Real GDP (Change in percent, unless otherwise indicated):\n  - 2014: 4.3\n  - 2015: 3.9\n  - 2016: 2.4\n  - 2017: 1.5\n  - 2018: 2.6\n- Gross investment:\n  - 2014: 12.2\n  - 2015: -4.7\n  - 2016: 7.6\n  - 2017: 1.2\n  - 2018: 0.6\n- Unemployment (percent of the labor force):\n  - 2014: 7.1\n  - 2015: 6.8\n  - 2016: 6.3\n  - 2017: 5.9\n  - 2018: 5.5\n  - 2019 Est.: 5.0\n- Resident employment (thousands):\n  - 2014: 239.7\n  - 2015: 244.8\n  - 2016: 250.3\n  - 2017: 257.3\n  - 2018: 264.5\n  - 2019 Proj.: 271.7\n- Total employment (thousands):\n  - 2014: 396.0\n  - 2015: 406.1\n  - 2016: 418.4\n  - 2017: 432.8\n  - 2018: 449.0\n  - 2019 Proj.: 464.3\n- CPI (harmonized), p.a.:\n  - 2014: 0.7\n  - 2015: 0.1\n  - 2016: 0.0\n  - 2017: 2.1\n  - 2018: 2.0\n  - 2019 Proj.: 1.6\n- Public finances (Percent of GDP):\n  - General government revenues:\n    - 2014: 43.3\n    - 2015: 43.7\n    - 2016: 44.4\n    - 2017: 45.5\n    - 2018: 44.6\n  - General government expenditures:\n    - 2014: 42.0\n    - 2015: 41.9\n    - 2016: 43.0\n    - 2017: 43.1\n    - 2018: 43.6\n  - General government balance:\n    - 2014: 1.3\n    - 2015: 1.4\n    - 2016: 1.9\n    - 2017: 0.9\n  - General government gross debt:\n    - 2014: 22.7\n    - 2015: 22.2\n    - 2016: 20.7\n    - 2017: 23.0\n    - 2018: 21.4\n    - 2019 Est.: 21.5\n- Balance of payments:\n  - Current account balance:\n    - 2014: 5.2\n    - 2015: 5.1\n    - 2016: 4.7\n    - 2017: 4.6\n  - Balance of trade in goods and services:\n    - 2014: 33.3\n    - 2015: 36.8\n    - 2016: 35.5\n    - 2017: 33.0\n    - 2018: 31.0\n    - 2019 Proj.: 29.2\n  - Factor income balance:\n    - 2014: -28.6\n    - 2015: -33.0\n    - 2016: -31.7\n    - 2017: -27.5\n    - 2018: -25.9\n    - 2019 Proj.: -25.0\n  - Transfer balance:\n    - 2014: 0.5\n    - 2015: -0.5\n    - 2016: 0.3\n- Exchange rates:\n  - U.S. dollar per euro:\n    - 2014: 1.1\n    - 2015: …\n  - Nominal effective rate (2010=100):\n    - 2014: 100.5\n    - 2015: 97.0\n    - 2016: 98.9\n    - 2017: 101.5\n    - 2018: 103.5\n\nSource: IMF Executive Board conclusions on the 2019 Article IV consultation with Luxembourg.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Luxembourg and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- http://www.imf.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation/index.md)",
    "[Structured JSON version](/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation/index.json)",
    "[Bundle manifest](/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation/bundle-manifest.json)",
    "Published: May 13, 2019",
    "Date: May 13, 2019",
    "On May 8, 2019, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Luxembourg.",
    "Recent performance: GDP growth reached 2.6 percent in 2018, above the EU average.",
    "Fiscal position: fiscal surplus estimated at about 2.4 percent of GDP in 2018.",
    "Labor market: unemployment at record post-crisis lows; confidence indicators well above long-term averages.",
    "Current assessment: the economy is currently operating close to its potential.",
    "Growth drivers:",
    "Downside risks identified:",
    "Commendations:",
    "Fiscal policy guidance:",
    "Financial sector resilience:",
    "Pensions and labor market:",
    "Real GDP (Change in percent, unless otherwise indicated):",
    "Gross investment:",
    "Unemployment (percent of the labor force):",
    "Resident employment (thousands):",
    "Total employment (thousands):",
    "CPI (harmonized), p.a.:",
    "Public finances (Percent of GDP):",
    "Balance of payments:",
    "Exchange rates:",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[Luxembourg and the IMF](http://www.imf.org/external/country/LUX/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[http://www.imf.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation/index.md",
    "json": "/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation/index.json",
    "bundleManifest": "/en/news/articles/2019/05/10/pr19158-luxembourg-imf-executive-board-concludes-2019-article-iv-consultation/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-25T22:44:20.560Z"
}