Luxembourg: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg
IMF Staff Country Reports, April 3, 2018
Source details
- Canonical URL
- Luxembourg: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg
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Bibliographic details
- Published: April 3, 2018
- Series: IMF Staff Country Reports
Economic performance and outlook
- Economic growth reached 2.3 percent in 2017, above the European Union average.
- Growth drivers in 2017: net exports of financial services and private consumption.
- Growth projection for 2018: 3.5 percent.
- Labor market: continued strong job creation projected for 2018.
- Inflation: a temporary slowdown expected in 2018.
Fiscal position and public finance
- Fiscal outcome in 2017: a fiscal surplus of 1.4 percent of GDP, supported by buoyant corporate tax revenues.
- Medium-term outlook: the full impact of 2016 tax reform, combined with a continued need for high public investment, is expected to result in a small fiscal surplus over the medium-term.
Key findings and focus areas
- Main findings:
- 2017 growth of 2.3 percent, driven by financial services exports and private consumption.
- Projected growth of 3.5 percent in 2018 with strong job creation and temporary inflation slowdown.
- 2017 fiscal surplus of 1.4 percent of GDP due to buoyant corporate tax revenues.
- Medium-term fiscal outlook shaped by 2016 tax reform and high public investment needs, leading to an expected small fiscal surplus.
- Subject areas highlighted: Banking; Corporate income tax; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Mutual funds; Public debt; Revenue administration; Taxes.
International Monetary Fund. European Dept. "Luxembourg: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg", April 3, 2018
Content in this bundle
- Country Report