Collecting, analysing and interpreting this range of data requires a wide range of skills and expertise in central banks, including macroeconomics, financial modelling and market liaison. The financial crisis has led to some changes in the way we do economic surveillance and presents new challenges and opportunities for central banks.
Accordingly the BCL staff continuously analyses the situation and structure of the Luxembourg economy. This enables the BCL to comment on the fiscal sustainability and time consistency of policy actions taken by the government. Examples for this are the general government budget deficit, which amounted to 1.9% of GDP in 2005 after significant surpluses from 1993 to 2002 and a balanced situation in 2003.