LUXEMBOURG

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Luxembourg Economy

Country Name: Grand Duchy of Luxembourg

Capital City: Luxembourg

Population: 474,413 (2006)

Population Growth: 1.23% (2006)

Currency: Euro (EUR)

Languages: Luxembourgish (national), German & French (administrative language)

Area: 2,586 sq km

Inflation Rate: 2.6% (2006 est.)

Unemployment Rate: 4.5% (2005)

Domain extension: .lu

ECONOMIC DETAILS OF LUXEMBOURG

ECONOMY OVERVIEW
This stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - features solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector, which now accounts for about 28% of GDP, has more than compensated for the decline in steel. Most banks are foreign-owned and have extensive foreign dealings. Agriculture is based on small family-owned farms. The economy depends on foreign and cross-border workers for about 60% of its labor force. Although Luxembourg, like all EU members, has suffered from the global economic slump, the country enjoys an extraordinarily high standard of living - GDP per capita ranks second in the world.

GDP - purchasing power parity:

$33.87 billion (2006 est.)

GDP - real growth rate:

6.2% (2006 est.)

GDP - per capita:

$71,400 (2006 est.)

GDP - by sector (agriculture):

agriculture: 1%

GDP - by sector (industry):

industry: 13%

GDP - by sector (services):

services: 86% (2005 est.)

Export Partners:

Germany 19.3%, France 15.5%, Italy 9.5%, UK 9.5%, Belgium 8.8%, Spain 5.3%, Netherlands 4.5% (2006)

Import Partners:

Belgium 26.3%, Germany 20.1%, China 16.7%, France 8.5%, UK 5.5%, Netherlands 4.2% (2006)

Export Commodities:

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

Import Commodities:

minerals, metals, foodstuffs, quality consumer goods

Exports Volume:

$19.55 billion f.o.b. (2006 est.)

Imports Volume:

$24.22 billion c.i.f. (2006 est.)

Labour Force:

203,000 of whom 121,600 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2006 est.)

Unemployment Rate:

4.1% (2006 est.)

Population below poverty line:

NA%

Inflation Rate:

2.6% (2006 est.)

Investment (gross fixed):

18.3% of GDP (2006 est.)

Public Debt:

Agriculture Products:

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

Industries:

banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism

Industrial Production Growth Rate:

4.3% (2006 est.)

Electricity - production:

3.203 billion kWh (2005 est.)

Electricity - consumption:

6.14 billion kWh (2005 est.)

Electricity - exports:

2.346 billion kWh (2005 est.)

Electricity - imports:

5.287 billion kWh (2005 est.)

Oil - production:

0 bbl/day (2004 est.)

Oil - consumption:

62,420 bbl/day (2004 est.)

Oil - exports:

634 bbl/day (2001)

Oil - imports:

50,700 bbl/day (2001)

Natural gas - production:

0 cu m (2004 est.)

Natural gas - consumption:

Natural gas - exports:

Natural gas - imports:

Current Account Balance:

$4.63 billion (2006 est.)

Currency Code:

euro (EUR)