Conjoncture Flash March 2026: Growth remains weak in 2025… and fears loom for 2026
GDP growth stalled in the final quarter of 2025. The year ended with growth of 0.6%, slightly better than in previous years, but still weak compared to past performance. The deterioration in the international environment and fears of a new inflationary shock are also casting a shadow over the outlook for 2026.
- Upside surprise for global trade in 2025
- Rise in net fund inflows
- Bank results dampened by falling interest margins
- Employment slightly more dynamic in Luxembourg in 2025
- Slowdown in labour costs in the 4th quarter of 2025
- Rising price pressures
- Maritime traffic in the Strait of Hormuz at a standstill
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