STATEC report: Luxembourg's industry is falling out of competition
From 2023, European industrial companies face increasing competition from non-EU countries. Luxembourg suffers particularly badly from this. Despite a slight recovery in October and November 2024, industrial output in the euro area remains 5 per cent below its 2022 level. This is due to higher energy prices, a slowdown in construction activity in Europe and a downturn in the car market. In addition to Luxembourg, Germany and Austria are experiencing a negative trend.
Competition is particularly strong in energy-intensive industries such as metals and chemicals, as well as in machinery and equipment. Europe is increasingly losing ground to China. The exception is transport engineering and equipment repair, which are showing a growing position on the global market. In Luxembourg, although there is an improvement in sentiment among industrial companies, instability in the metals sector persists.
"The production of rubber, plastics and chemical products remains one of the most vulnerable in Luxembourg," the report said.
As for the rest of Europe's financial performance in 2024 and early 2025, it varies by sector. Indices in banking, insurance and telecoms continue to rise, while the technology and retail sectors are slowing down. In the labour market, difficulties remain in restoring pre-crisis employment levels. In the energy sector, Luxembourg's electricity tariffs are expected to rise by 30 per cent, which could further depress production;
Luxembourg retains the potential for recovery, but success will depend on flexibility in adapting to global challenges and on support at EU level," STATEC notes.
