GDP Growth in Volume;
Credit: STATEC
According to STATEC, Luxembourg’s national statistical office, real Gross Domestic Product (GDP) decreased by 0.1% in the fourth quarter of 2025 compared to the previous quarter and by 2.4% compared to the same period in 2024.
STATEC also revised annual real GDP developments for previous quarters as follows: +3.2% instead of +2.7% for the third quarter of 2025, -0.6% instead of -0.7% for the second quarter of 2025, -2.4% instead of -2.6% for the first quarter of 2025.
The quarterly series of GDP and the main aggregates are adjusted for seasonal variations.
GDP according to the “Production” approach
STATEC reported that total value added across all branches increased by 0.1% quarter-on-quarter in Q4 2025. Non-market activities (public administration, education and health), as well as from industry and – to a lesser extent – business services and rental activities contributed the most to this growth.
Conversely, most other market sectors saw their value added decline in the fourth quarter. The most negative impacts on the overall result came from information and communication services, trade, transport and financial activities.
GDP according to the “Expenditure” approach
According to STATEC, investment expenditure (gross fixed capital formation) fell by 11.5% over the quarter, following a particularly strong increase in the third quarter, which was mainly due to satellite acquisitions. This is reflected correspondingly in imports of goods, which had been boosted by this phenomenon in the third quarter and declined again in the fourth quarter.
Total exports fell by around 1% over the quarter, mainly due to non-financial services exports. Exports of financial services, by contrast, increased for the second consecutive quarter.
A first estimate of 0.6% growth for 2025
STATEC said this result for GDP in volume in the final quarter of 2025, combined with those of previous quarters, indicated an overall increase of 0.6% for the year. However, STATEC advised this remains only a first estimate (subject to revision based on observed data that are not yet available).
This rise represented a slight acceleration compared with those recorded in previous years (+0.1% in 2023, +0.4% in 2024), but it remained very modest compared with historical results (+2.5% per year on average during the decade 2010–2019).
