FX.co ★ Luxembourg Economy Stagnates in Q1

Luxembourg’s economy was flat in the first quarter of 2026 on a quarter-on-quarter basis, matching the outcome of the previous quarter. The stagnation largely reflected a downturn in household consumption, which fell 0.6% after a 0.6% increase in Q4. At the same time, growth in public spending lost momentum, easing to 0.8% from 1.1%.

Net trade also acted as a drag, as imports declined more slowly than exports. This weakness was partly offset by a strong rebound in fixed investment, which surged 5.2% following a 12.0% contraction in the previous quarter.

On the production side, agricultural activity strengthened, with output rising 2.5% after a 0.5% gain. Construction (2.4% vs -0.5%), commerce (1.7% vs -1.4%), and real estate (0.7% vs -0.4%) all returned to growth after previous declines.

On an annual basis, GDP expanded 1.6% in Q1, moderating from a downwardly revised 2.1% increase in the preceding quarter.