Financial Outlook for Luxembourg Expected to Deteriorate in 2024

Luxembourg - January 11, 2024

According to the latest forecasts from the National Statistics Organization of Luxembourg, 2024 is anticipated to be a challenging year for fiscal revenues. The slowing pace of real estate transactions and property rentals is expected to exert a significant impact on incomes, causing a considerable decline this year.
The alignment of tax scales, which reduces the tax burden on households, poses a disadvantage to government authorities. Similar to the economic downturn in the job market and the decrease in corporate shares, the government, nevertheless, has devised plans to assist them in fulfilling their upcoming contributions.
All these factors contribute to worsening the public budget deficit. It is expected that Luxembourg's deficit will reach 2.7% of the Gross Domestic Product (GDP) in 2024, compared to 1.7% in the previous year.