Luxembourg Economy Profile 2009

Economy - overview

This stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - has historically featured 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 third in the world, after Liechtenstein and Qatar. After two years of strong economic growth in 2006-07, turmoil in the world financial markets trimmed Luxembourg's economy in 2008.

GDP (purchasing power parity)

$39.37 billion (2008 est.)
$39.74 billion (2007 est.)
$37.78 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$54.97 billion (2008 est.)

GDP - real growth rate

-0.9% (2008 est.)
5.2% (2007 est.)
6.4% (2006 est.)

GDP - per capita (PPP)

$81,000 (2008 est.)
$82,800 (2007 est.)
$79,600 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 0.4%
industry: 13.6%
services: 86% (2007 est.)

Population below poverty line

NA%

Labor force

207,100 of whom 125,400 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2008 est.)

Labor force - by occupation

agriculture: 2.2%
industry: 17.2%
services: 80.6% (2007 est.)

Unemployment rate

4.5% (2008 est.)
4.4% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.5%
highest 10%: 23.8% (2000)

Distribution of family income - Gini index

26 (2005)

Investment (gross fixed)

20.2% of GDP (2008 est.)

Budget

revenues: $22.42 billion
expenditures: $21 billion (2008 est.)

Public debt

10.2% of GDP (2008 est.)
6.4% of GDP (2007 est.)

Inflation rate (consumer prices)

3.4% (2008 est.)
2.3% (2007 est.)

Central bank discount rate

3% (31 December 2008)
5% (31 December 2007)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

Stock of money

$NA

note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Stock of quasi money

$NA

Stock of domestic credit

$100.8 billion (31 December 2008)
$100.9 billion (31 December 2007)

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

1.7% (2007 est.)

Electricity - production

3.01 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 57.3%
hydro: 25.2%
nuclear: 0%
other: 17.5% (2001)

Electricity - consumption

6.748 billion kWh (2006 est.)

Electricity - exports

2.887 billion kWh (2007 est.)

Electricity - imports

6.847 billion kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

60,640 bbl/day (2007 est.)

Oil - imports

63,760 bbl/day (2005)

Oil - exports

281.5 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

1.329 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

1.329 billion cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

$2.979 billion (2008 est.)
$4.928 billion (2007 est.)

Agriculture - products

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

Exports

$21.43 billion (2008 est.)
$18.26 billion (2007 est.)

Exports - commodities

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

Exports - partners

Germany 21.7%, France 17.3%, Belgium 10%, Italy 6.9%, UK 6.5%, Netherlands 6%, Spain 5% (2008)

Imports

$27.73 billion (2008 est.)
$23.09 billion (2007 est.)

Imports - commodities

minerals, metals, foodstuffs, quality consumer goods

Imports - partners

Belgium 28.1%, Germany 23.8%, China 18.8%, France 10%, Netherlands 4.9% (2008)

Reserves of foreign exchange and gold

$398 million (31 December 2008 est.)
$205.5 million (31 December 2007 est.)

Debt - external

$1.933 trillion (31 December 2008)
$NA (31 December 2007)

Stock of direct foreign investment - at home

$11.21 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA (31 December 2008)
$166.1 billion (31 December 2007)
$79.52 billion (31 December 2006)

Economic aid - donor

ODA, $291 million (2006)

Currency (code)

EUR

Currency (code)

euro (EUR)

Exchange rates

euros (EUR) per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year

calendar year