Luxembourg Economy Profile 2008

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, 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 rate

5% (2007 est.)

GDP - per capita (PPP)

$80,800 (2007 est.)

GDP - composition by sector

agriculture: 1%
industry: 13%
services: 86% (2005 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

2.1% (2007 est.)

Investment (gross fixed)

17.5% of GDP (2007 est.)

Labor force

205,000 of whom 121,600 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2007 est.)

Labor force - by occupation

agriculture: 1%
industry: 13%
services: 86% (2004 est.)

Unemployment rate

4.4% (2007 est.)

Distribution of family income - Gini index

26 (2005)

Budget

revenues: $14.29 billion
expenditures: $13.92 billion (2007 est.)

Public debt

2.6% of GDP (2007 est.)

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

3.156 billion kWh (2005 est.)

Electricity - consumption

6.315 billion kWh (2005 est.)

Electricity - exports

3.131 billion kWh (2005 est.)

Electricity - imports

6.392 billion kWh (2005 est.)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

64,020 bbl/day (2005 est.)

Oil - imports

61,070 bbl/day (2004)

Oil - exports

283 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

1.356 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

1.356 billion cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

$11.3 billion (2007 est.)

Agriculture - products

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

Exports

$19.58 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

Germany 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 - commodities

minerals, metals, foodstuffs, quality consumer goods

Imports - partners

Belgium 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 - donor

ODA, $291 million (2006)

Currency (code)

euro (EUR)

Exchange rates

euros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)

Fiscal year

calendar year