Luxembourg - Economic Indicators

Western Europe, between France and Germany

49 45 N, 6 10 E

Europe

slightly smaller than Rhode Island; about half the size of Delaware

0 km (landlocked)

none (landlocked)

modified continental with mild winters, cool summers

mostly gently rolling uplands with broad, shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle flood plain in the southeast

highest point: Buurgplaatz 559 m

iron ore (no longer exploited), arable land

arable land 24%; permanent crops 0.6%; permanent pasture 26.1%

0 sq km (2012)

most people live in the south, on or near the border with France

occasional flooding

air and water pollution in urban areas, soil pollution of farmland; unsustainable patterns of consumption (transport, energy, recreation, space) threaten biodiversity and landscapes

landlocked; the only grand duchy in the world

594,130 (July 2017 est.)

Luxembourger 52.1%, Portuguese 16%, French 7.6%, Italian 3.6%, Belgian 3.4%, German 2.2%, Spanish 1.1%, British 1%, other 13%

Luxembourgish (official administrative and judicial language and national language (spoken vernacular)) 55.8%, Portuguese 15.7%, French (official administrative, judicial, and legislative language) 12.1%, German (official administrative and judicial language) 3.1%, Italian 2.9%, English 2.1%, other 8.4% (2011 est.)

Christian (predominantly Roman Catholic) 70.4%, Muslim 2.3%, other (includes Buddhist, folk religions, Hindu, Jewish) 0.5%, none 26.8% (2010 est.)

1.98% (2017 est.)

11.5 births/1,000 population (2017 est.)

7.3 deaths/1,000 population (2017 est.)

15.5 migrant(s)/1,000 population (2017 est.)

most people live in the south, on or near the border with France

LUXEMBOURG (capital) 107,000 (2014)

30.1 years (2015 est.)

10 deaths/100,000 live births (2015 est.)

1.62 children born/woman (2017 est.)

6.6% of GDP (2014)

2.92 physicians/1,000 population (2016)

4.9 beds/1,000 population (2014)

urban: 100% of population

rural: 100% of population

total: 100% of population

urban: 0% of population

rural: 0% of population

total: 0% of population (2015 est.)

urban: 97.5% of population

rural: 98.5% of population

total: 97.6% of population

urban: 2.5% of population

rural: 1.5% of population

total: 2.4% of population (2015 est.)

NA

NA

<100 (2016 est.)

22.6% (2016)

4% of GDP (2014)

constitutional monarchy

12 cantons (cantons, singular - canton); Capellen, Clervaux, Diekirch, Echternach, Esch-sur-Alzette, Grevenmacher, Luxembourg, Mersch, Redange, Remich, Vianden, Wiltz

1839 (from the Netherlands)

National Day (Birthday of Grand Duke HENRI), 23 June; note - this date of birth is not the true date of birth for any of the Royals, but the national festivities were shifted in 1962 to allow observance during a more favorable time of year

civil law system

accepts compulsory ICJ jurisdiction; accepts ICCt jurisdiction

18 years of age; universal and compulsory

Alternative Democratic Reform Party or ADR [Jean SCHOOS]

Christian Social People's Party or CSV [Marc SPAUTZ]

Democratic Party or DP [Corinne CAHEN]

Green Party [Francoise FOLMER and Christian KMIOTEK]

Luxembourg Socialist Workers' Party or LSAP [Claude HAAGEN]

The Left (dei Lenk/la Gauche) [collective leadership, Central Committee]

other minor parties

Business Federation Luxembourg or FEDIL [Nicolas BUCK]

Centrale Paysanne [Marc FISCH] (federation of agricultural producers)

Chamber of Artisans (Chambre des Metiers) [Tom OBERWEIS]

Chamber of Commerce (Chambre de Commerce) [Carlo THELEN]

Chambre des Salaries or CSL [Jean-Claude REDING]

General Association of Officials (Confederation Generale de la Fonction Publique or CGFP) [Romain WOLFF] (trade union representing civil service)

Greenpeace [Raymond AENDEKERK]

Luxembourg Confederation of Christian Trade Unions or LCGB [Patrick DURY] (center-right trade union)

Luxembourg Association of Bankers and Insurance Employees or ALEBA [Roberto SCOLATI]

Luxembourg Bankers Association or ABBL [Guy HOFFMANN]

Mouvement Ecologique [Blanche WEBER] (environmental protection)

Confederation of Independent Trade Unions or OGB-L [Andre ROELTGEN] (center-left trade union)

ADB (nonregional member), Australia Group, Benelux, BIS, CD, CE, EAPC, EBRD, ECB, EIB, EMU, ESA, EU, FAO, FATF, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NATO, NEA, NSG, OAS (observer), OECD, OIF, OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNRWA, UPU, WCO, WHO, WIPO, WMO, WTO, ZC

three equal horizontal bands of red (top), white, and light blue; similar to the flag of the Netherlands, which uses a darker blue and is shorter; the coloring is derived from the Grand Duke's coat of arms (a red lion on a white and blue striped field)

red, rampant lion; national colors: red, white, light blue

This small, stable, high-income economy has historically featured solid growth, low inflation, and low unemployment. Luxembourg, the only Grand Duchy in the world, is a landlocked country in northwestern Europe surrounded by Belgium, France, and Germany. Despite its small landmass and small population, Luxembourg is the second-wealthiest country in the world when measured on a gross domestic product (PPP) per capita basis. Luxembourg has one of the highest current account surpluses as a share of GDP in the euro zone, and it maintains a healthy budgetary position, with a 2017 surplus of 0.5% of GDP, and the lowest public debt level in the region.

Since 2002, Luxembourg’s government has proactively implemented policies and programs to support economic diversification and to attract foreign direct investment. The government focused on key innovative industries that showed promise for supporting economic growth: logistics, information and communications technology (ICT); health technologies, including biotechnology and biomedical research; clean energy technologies, and more recently, space technology and financial services technologies. The economy has evolved and flourished, posting strong GDP growth of 3.4% in 2017, far outpacing the European average of 1.8%.

Luxembourg remains a financial powerhouse – the financial sector accounts for more than 35% of GDP - because of the exponential growth of the investment fund sector through the launch and development of cross-border funds (UCITS) in the 1990s. Luxembourg is the world’s second-largest investment fund asset domicile, after the US, with $4 trillion of assets in custody in financial institutions.

Luxembourg has lost some of its advantage as a favorable tax location because of OECD and EU pressure, as well as the “LuxLeaks” scandal, which revealed advantageous tax treatments offered to foreign corporations. In 2015, the government’s compliance with EU requirements to implement automatic exchange of tax information on savings accounts - thus ending banking secrecy - has constricted banking activity. Likewise, changes to the way EU members collect taxes from e-commerce has cut Luxembourg’s sales tax revenues, requiring the government to raise additional levies and to reduce some direct social benefits as part of the tax reform package of 2017. The tax reform package also included reductions in the corporate tax rate and increases in deductions for families, both intended to increase purchasing power and increase competitiveness.

$64.39 billion (2017 est.)

$61.99 billion (2016 est.)

$59.5 billion (2015 est.)

$63.52 billion (2017 est.)

3.9% (2017 est.)

4.2% (2016 est.)

4% (2015 est.)

$109,100 (2017 est.)

$107,600 (2016 est.)

$105,700 (2015 est.)

23.2% of GDP (2017 est.)

22.8% of GDP (2016 est.)

24% of GDP (2015 est.)

grapes, barley, oats, potatoes, wheat, fruits; dairy and livestock products

banking and financial services, construction, real estate services, iron, metals, and steel, information technology, telecommunications, cargo transportation and logistics, chemicals, engineering, tires, glass, aluminum, tourism, biotechnology

0.1% (2017 est.)

282,800

5.9% (2017 est.)

6.4% (2016 est.)

NA%

30.4 (2013 est.)

26 (2005 est.)

43.5% of GDP (2017 est.)

0.4% of GDP (2017 est.)

19.3% of GDP (2017 est.)

20% of GDP (2016 est.)

calendar year

1.2% (2017 est.)

0% (2016 est.)

0.25% (31 December 2017 est.)

0.3% (31 December 2010 est.)

$281 billion (31 December 2017 est.)

$229.2 billion (31 December 2016 est.)

$312.7 billion (31 December 2017 est.)

$271.4 billion (31 December 2016 est.)

$127.7 billion (31 December 2017 est.)

$109.9 billion (31 December 2016 est.)

$47.13 billion (31 December 2015 est.)

$63.17 billion (31 December 2014 est.)

$78.64 billion (31 December 2013 est.)

$2.967 billion (2017 est.)

$2.823 billion (2016 est.)

$18.4 billion (2017 est.)

$16.37 billion (2016 est.)

machinery and equipment, steel products, chemicals, rubber products, glass

Germany 23.1%, Belgium 16.6%, France 15.4%, Netherlands 5.1% (2016)

$22.4 billion (2017 est.)

$19.97 billion (2016 est.)

commercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods

Belgium 29.4%, Germany 24.3%, France 10.3%, US 7%, China 5.8%, Netherlands 4.3%, Mexico 4.3% (2016)

$1 billion (31 December 2017 est.)

$974 million (31 December 2016 est.)

$3.781 trillion (31 March 2016 est.)

$3.806 trillion (31 March 2015 est.)

$11.21 billion (31 December 2008 est.)

$NA

euros (EUR) per US dollar -

0.89 (2017 est.)

0.9 (2016 est.)

0.92 (2015 est.)

0.89 (2014 est.)

0.76 (2013 est.)

735 million kWh (2015 est.)

6.178 billion kWh (2015 est.)

1.42 billion kWh (2016 est.)

7.718 billion kWh (2016 est.)

2.023 million kW (2015 est.)

23.7% of total installed capacity (2015 est.)

0% of total installed capacity (2015 est.)

1.7% of total installed capacity (2015 est.)

12.7% of total installed capacity (2015 est.)

0 bbl/day (2016 est.)

0 bbl/day (2016 est.)

0 bbl/day (2016 est.)

0 bbl (1 January 2017 est.)

0 bbl/day (2016 est.)

56,120 bbl/day (2016 est.)

0 bbl/day (2016 est.)

55,900 bbl/day (2016 est.)

6 million cu m (2015 est.)

1.108 billion cu m (2015 est.)

0 cu m (2014 est.)

875 million cu m (2015 est.)

0 cu m (1 January 2014 est.)

11 million Mt (2013 est.)

Luxembourg has a long tradition of operating radio and TV services for pan-European audiences and is home to Europe's largest privately owned broadcast media group, the RTL Group, which operates 46 TV stations and 29 radio stations in Europe; also home to Europe's largest satellite operator, Societe Europeenne des Satellites (SES); domestically, the RTL Group operates TV and radio networks; other domestic private radio and TV operators and French and German stations available; satellite and cable TV services available (2016)

.lu

LX (2016)

2 (2013)

1 (2013)

gas 142 km; refined products 27 km (2013)

37 km (on Moselle River) (2010)

0.54% of GDP (2017)

0.49% of GDP (2016)

0.48% of GDP (2015)

0.42% of GDP (2014)

0.42% of GDP (2013)

Luxembourg Army (Armee Luxembourgeoise) (2018)

18-24 years of age for male and female voluntary military service; no conscription; Luxembourg citizen or EU citizen with 3-year residence in Luxembourg (2017)

none