Balance of payments of Luxembourg during the first quarter of 2025

The Banque centrale du Luxembourg (BCL) and STATEC inform that, according to the first provisional results, the current account for the first quarter of 2025 showed a surplus of 883 million euros, i.e. an increase of 316 million euro compared to the same period of the previous year.

The goods deficit stood at 184 million euro in the first quarter of 2025, corresponding to an improvement of 82 million euro compared to the same quarter of the previous year. Indeed, exports of goods decreased by 2% while imports decreased by 3%. Firstly, net exports from goods under merchanting (purchases of goods abroad and their resale abroad) expanded by 1 081 million euro. Secondly, general merchandise (i.e. excluding merchanting) exports declined by 19% (-1 229 million euro), while imports shrank less, by 4% (-231 million euro).

The balance of international trade in services grew by 18% in the first quarter of 2025 (1 273 million euro) compared to the same quarter of the previous year, due to the fact that exports rose by 1.8% and imports decreased by 1.9%. In particular, trade in non-financial services decreased for exports (-1.0%) and even more for imports (-7.3%), thereby increasing the surplus in non-financial services compared to the first quarter 2024. International trade in financial services, meanwhile, progressed with 4.7% for exports and 5.9% for imports. This evolution is driven mainly by an increase in average assets managed by investment funds during the period under review (9%) compared to the same quarter of the previous year.

In the financial account, direct investments were negative during the first quarter of 2025, both for assets (-27 billion euro) and liabilities (-33.4 billion euro, approximately half of which is due to capital operations), compared to positive investments in the first quarter 2024.

Regarding portfolio investments, Luxembourg equities recorded net inflows, reaching 88.7 billion euro during the first quarter of 2025, compared to net inflows of 20.6 billion euro the previous year.

On their side, transactions in foreign equities were again negative in the first quarter of 2025 (-21.8 billion euro, -15 billion euro in the first quarter 2024). By contrast, foreign debt securities continued to be subject of net acquisitions, amounting to 87.1 billion euro. Finally, Luxembourg debt securities recorded net inflows of 15.4 billion euro, which corresponds to an increase vis-à-vis the first quarter of 2024 (3.6 billion euro).

Les tableaux statistiques détaillés sont disponibles sur les sites Internet de la BCL (www.bcl.lu) et du STATEC (www.statistiques.public.lu).