The financial sector remains Luxembourg's main growth engine. According to the Commission's winter 2015 economic forecast, economic activity is projected to continue expanding this year, with the main contribution coming from domestic demand, notably investment. In spite of job creation remaining dynamic, unemployment increased over recent years and is expected to peak in 2015, before inching down in 2016, The current account balance remains in surplus, though lower than past averages. In 2014 the general government surplus is set to have declined marginally but in spite of envisaged fiscal consolidation, public finances are expected to deteriorate in 2015.
Read a complete analysis of Luxembourg's economy in the country report 2015 [985 KB]
2015 recommendations in brief
The Commission has made three country-specific recommendations to Luxembourg to help it improve its economic performance. These are in the areas of: taxation; pensions; wage-setting.