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1. Amid the euro area debt crisis, Luxembourgs growth slowed notably last year.
In the first half of 2011 private consumption and investment held up despite an external slowdown. But as the crisis and uncertainty lingered, consumer and manufacturing business confidence plummeted and slowed domestic demand. Reflecting the waning impact of global fuel price increases and postponements in automatic wage indexation, inflation has eased. In recent months, employment growth has remained stable but the unemployment rate has risen. Long-run joblessness has also increased and accounts for about 40 percent of overall unemployment.
2. Luxembourgs economy is...
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