Every month the MRC's team of economists issues this barometer for the Luxembourg and European economy. This indicator tracks recent fluctuations in the Luxembourg market and in the overall Eurozone.
At +12, our barometer is up one point over last month. In Europe, the barometer has not yet reacted to the Brexit vote.
Current economic conditions in Luxembourg are more favourable than in the rest of the euro area, with a GDP of point 0.7% growth in the first quarter of 2016 compared with 0.5% over the same period in the euro area.
- The financial sector's contribution to growth has decreased and developments in this area will be closely linked to what happens in the wake of Brexit.
- Household consumption is slightly down, despite a strong job market.
- The real estate sector continues to perform well: according to the latest figures, residential real estate prices have gone up 4.8% year-on-year.
Growth has been driven by foreign trade and capital expenditure, which has been strong in the construction sector and in services to businesses. Even though the manufacturing sector has been sluggish, the positive trend should continue throughout 2016.