Luxembourg’s economic performance has been relatively strong, with the EPI score projected to be 95.5% in 2016, or an A- level.
GDP growth is projected to be 3.4%, supported by consumer and firm sentiment. An improving labor market, low inflation and rising house prices are also signals of improvement. The external outlook has weakened, as major trading markets adjust to the ongoing slowdown across emerging markets, but financial services exports will remain a key driver of growth.
The near-term outlook remains broadly positive, and the 5-Minute Economist projects Luxembourg’s EPI score to stay slightly below 95%, or a B+ level, until 2020.