Luxembourg to Register Strong Economic Growth in 2017

Written by: Bridgewest

As usual, the EU Commission publishes reports on the economic situation of each of its member states at the beginning of every year. This year, the Commission gave good news to Luxembourg, as its economy is expected to “grow strongly” in 2017 and 2018. Another important fact the Commission announced it that Luxembourg’s growth is based on an overall EU economic increase. Our lawyers in Luxembourg can assist foreign investors interested in setting up businesses here.

Luxembourg’s GDP to grow up to 4% in 2017

Focusing on Luxembourg’s economy, the EU Commission’s report forecasts a “strong broad-based growth” with a Gross Domestic Product (GDP) to grow up to 4% this year. The increase of oil prices, which will actually mark a recovery, and the solid employment growth will contribute to this economic increase.

The Commission also noticed the government’s tax reforms which will lead to sound public finances and a lower tax burden on Luxembourg companies and citizens. Private consumption is expected to grow which will have a positive effect on the economy.

Foreign investments expected to make a difference in Luxembourg’s economy

An important role in Luxembourg’s economic growth for 2017 and 2018 is predicted to be played by foreign investments. These should come from both the private and the public sectors. Particularly, private companies are expected to receive better lending conditions. These conditions will enable companies in the private sector to create more jobs this year. The increase in job offers, especially for foreign citizens, is expected to grow by 3% this year. Also, the rise in the employment numbers will trigger consumption which will help the public sector. The government announced strong investments in large infrastructure projects and purchase of equipment.

With respect to the economic forecast for 2018, Luxembourg is expected to have a GDP growth of 3.9%, due to the strong increase in the euro zone.

Our law firm in Luxembourg can offer full information on the legislation related to foreign direct investments in the Grand Duchy and can help foreign enterprisers interested in opening a company here. For more information on our services, please contact us.