Luxembourg’s economy expanded 0.6% quarter-on-quarter in the second quarter of 2025, slightly easing from an upwardly revised 0.7% growth in the previous quarter. The growth was primarily driven by household consumption (0.2% vs -0.5%) and government spending (1.0% vs 1.3%), but was dragged down by a drop in gross fixed capital formation (-3.0% vs 3.0%). In external trade, exports remained flat (0.0% vs 5.8%), while lower imports (-0.1% vs 5.8%) slightly supported GDP. On an annual basis, GDP fell 0.2% in Q2, following a 1.9% decline in the prior quarter.