Conjoncture Flash June 2024: Conjoncture Flash June2024: High interest rates weigh on businesses
High interest rates weigh heavily on the expenses of non-financial companies, the availability of credit and investment. Demand for credit and outlook for investment remain weak at the start of 2024. Investment should pick up again in 2025 due to a fall in key rates and a recovery in demand.
- Slight expansion in 2024
- Lack of demand
- Sustained growth in bank earnings
- Less inflation than expected in 2025, thanks to the extension of the tariff shield
- Labour costs starting to slow in Luxembourg
- Construction takes a heavy toll on employment in Luxembourg
- Employment remains buoyant in sectors linked to the energy transition
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