Luxembourg’s economy shrank by 0.1% in Q4 2025, following an upwardly revised 1.2% expansion in Q3, ending a streak of four consecutive quarters of solid growth. The contraction was mainly driven by a sharp drop in fixed investment (-11.5% vs 12.8% in Q3), while growth also slowed for household consumption (0.8% vs 1.1%) and public spending (1.1% vs 1.5%). Net trade provided a modest boost, as exports fell less than imports. On an annual basis, Luxembourg’s GDP growth eased to 2.4% in Q4, down from 3.2% in the previous quarter. For the full year 2025, the economy grew 0.6%, slightly above 0.4% in 2024 but still well below the historical average of 2.5% per year during 2010–2019.