Luxembourg Economy 2026: Key Figures & Outlook

Latest Economic Figures of Luxembourg in 2026

Economic Context

In 2026, Luxembourg continues to navigate a globally uncertain economic environment. Although small and open, the country remains exposed to international fluctuations. According to projections, GDP growth is expected to reach 2% this year, marking a slight improvement compared to 2025 when it was 1%.

Financial Rating

Despite budgetary challenges, Luxembourg has maintained its 'AAA' rating with stable outlooks, according to S&P Global Ratings. This assessment highlights the country's financial strength, supported by efficient institutions, political stability, and a competitive financial sector.

Growth Prospects

Medium-term forecasts indicate moderate economic growth, with GDP potentially reaching 2.5% by 2029. This momentum is supported by robust domestic consumption and declining interest rates.

Budgetary Challenges

Luxembourg faces an increase in public spending, expected to reach 45.5 billion euros in 2026, a rise of 5.6% compared to the previous year. This increase is mainly due to spending on defense, social policy, and energy subsidies.

Conclusion

In summary, Luxembourg demonstrates notable economic resilience in 2026, despite a challenging international context. Financial stability and investor attractiveness remain major assets for the country.