Luxembourg continued to show robust growth in 2015. New fiscal and financial regulation is heading towards Luxembourg, challenging its financial sector-driven growth model.
Spain’s economic recovery has strengthened in the third quarter, mainly due to growth in consumption and investment. This also improves next year’s growth outlook. Meanwhile, the external rebalancing is in full swing and government finances are improving.
GDP growth remains robust, mainly owing to a rise in private consumption. We expect employment growth to pick up, especially in the services sector. The fiscal reform announced in the wake of next year’s election puts the deficit target at risk.