Note de Conjoncture No. 3-2012: Minimal growth

The European institutional environment changed considerably over the 3rd quarter of 2012. Substantial changes were adopted to create tools to deal with the problem of public debt in the eurozone. As regards the economic indicators, the situation has deteriorated and recession has taken hold in the eurozone, with household and business confidence at an all-time low. While growth in the Luxembourg economy in early 2012 was a little better than expected, there were worrying signs in a number of sectors. The prospects for 2013 have deteriorated significantly, due in particular to the worsening situation in the eurozone. Expected growth for Luxembourg GDP is 0.5% in 2012 and it has been revised downwards to just 1.0% for 2013. This low growth will not be enough to stem the rise in unemployment.

These are the main facts highlighted in Note de Conjoncture No. 3-2012, which STATEC has just published. Macro-economic forecasts, the international economic situation, recent developments in the main sectors of activity, inflation, wages, the labour market and public finances are dealt with in detail in this issue.