Economy - overviewThis 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, suffered from the global economic slump in the early part of this decade, the country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks first in the world. After two years of strong economic growth in 2006-07, turmoil in the world financial markets will slow Luxembourg's economy in 2008, but growth will remain above the European average. GDP (purchasing power parity)$38.79 billion (2007 est.) GDP (official exchange rate)$47.65 billion (2007 est.) GDP - real growth rate5% (2007 est.) GDP - per capita (PPP)$80,800 (2007 est.) GDP - composition by sectoragriculture: 1% Population below poverty lineNA% Household income or consumption by percentage sharelowest 10%: 3.5% Inflation rate (consumer prices)2.1% (2007 est.) Investment (gross fixed)17.5% of GDP (2007 est.) Labor force205,000 of whom 121,600 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2007 est.) Labor force - by occupationagriculture: 1% Unemployment rate4.4% (2007 est.) Distribution of family income - Gini index26 (2005) Budgetrevenues: $14.29 billion Public debt2.6% of GDP (2007 est.) Industriesbanking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism Industrial production growth rate4.3% (2006 est.) Electricity - production3.156 billion kWh (2005 est.) Electricity - consumption6.315 billion kWh (2005 est.) Electricity - exports3.131 billion kWh (2005 est.) Electricity - imports6.392 billion kWh (2005 est.) Oil - production0 bbl/day (2005 est.) Oil - consumption64,020 bbl/day (2005 est.) Oil - imports61,070 bbl/day (2004) Oil - exports283 bbl/day (2004) Oil - proved reserves0 bbl (1 January 2006 est.) Natural gas - production0 cu m (2005 est.) Natural gas - consumption1.356 billion cu m (2005 est.) Natural gas - exports0 cu m (2005 est.) Natural gas - imports1.356 billion cu m (2005) Natural gas - proved reserves0 cu m (1 January 2006 est.) Current Account Balance$11.3 billion (2007 est.) Agriculture - productswine, grapes, barley, oats, potatoes, wheat, fruits; dairy products, livestock products Exports$19.58 billion f.o.b. (2007 est.) Exports - commoditiesmachinery and equipment, steel products, chemicals, rubber products, glass Exports - partnersGermany 19.3%, France 15.5%, Italy 9.5%, UK 9.5%, Belgium 8.8%, Spain 5.3%, Netherlands 4.5% (2006) Imports$26.85 billion c.i.f. (2007 est.) Imports - commoditiesminerals, metals, foodstuffs, quality consumer goods Imports - partnersBelgium 26.3%, Germany 20.1%, China 16.7%, France 8.5%, UK 5.5%, Netherlands 4.2% (2006) Reserves of foreign exchange and gold$265.1 million (2006 est.) Debt - external$NA Stock of direct foreign investment - at home$NA Stock of direct foreign investment - abroad$NA Market value of publicly traded shares$79.4 billion (2006) Economic aid - donorODA, $291 million (2006) Currency (code)euro (EUR) Exchange rateseuros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003) Fiscal yearcalendar year |
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Source: CIA World Factbook | |