Luxembourg is the smallest member of the European Union, but has the world’s highest GDP per capita. The country has a stable, high-income economy that features solid growth, low inflation and low levels of unemployment. During the twentieth century, the economy of Luxembourg developed from an agrarian economy into a manufacturing and more service-oriented economy.
The industrial sector has become increasingly diversified to include chemicals, rubber and other products. There is substantial growth in the financial sector, which now accounts for about 22% of GDP. It is worth noting that most banks in Luxembourg are foreign-owned and have extensive foreign dealings.
Growing and lucrative sectors
- The single most important sector of Luxembourg is the financial services sector.
- In the communications sector, Luxembourg is one of the 25 most progressive countries in the world. More than half of its households are connected to the web with ISDN while 11% of all households has an ADSL connection.
- Within the ICT sector, Luxembourg is, above all, a leading player in the telecoms market and, more specifically, in the niche industry of satellite communications.
Exports: 9.04 billion euros
- Commodities: machinery and equipment, steel products, chemicals, rubber products and glass
- Main trading partners: Germany 21.8%, France 20.1%, Belgium 10.5%, UK 9.3%, Italy 7.1%, Spain 5.6% and the Netherlands 4.3%
Imports: 12.05 billion euros
- Commodities: minerals, metals, foodstuffs and upmarket consumer goods
- Main trading partners: Belgium 30%, Germany 21.8%, France 12.5%, China 11.9% and the Netherlands 4.5%
Useful facts
GDP: 25.6 billion euros
Growth rate of GDP: 3.4%
Inflation rate: 2.4%
Labour force: 293,700
Unemployment rate: 4.5%
