Luxembourg Business Resources

Economy - overview:
This stable, high-income economy - in between 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 22% 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 more than 30% 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.

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

Airlines
Airlines in Europe
Airlines Worldwide

Airports
Airports in Europe
Airports Worldwide

Country Budget
revenues: $13.74 billion
expenditures: $14.49 billion, including capital expenditures of $760 million (2004 est.)

Currency (code)
euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

Currency Exchange Rate
euros per US dollar - 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000)

Fiscal Year
calendar year

GDP (Gross Domestic Product)
GDP (purchasing power parity): $27.27 billion (2004 est.)
GDP - real growth rate: 2.3% (2004 est.)
GDP - per capita: purchasing power parity - $58,900 (2004 est.)
GDP - composition by sector:
agriculture: 0.5%
industry: 16.3%
services: 83.1% (2004 est.)

Imports / Exports
Exports: $13.4 billion f.o.b. (2003)
Exports - commodities: machinery and equipment, steel products, chemicals, rubber products, glass
Exports - partners: Germany 22.1%, France 20.1%, Belgium 10.2%, UK 8.4%, Italy 7.3%, Spain 5.9%, Netherlands 4.3% (2004)

Imports: $16.3 billion c.i.f. (2003)
Imports - commodities: minerals, metals, foodstuffs, quality consumer goods
Imports - partners: Belgium 29.8%, Germany 22.6%, China 12.6%, France 12%, Netherlands 4.2% (2004)

Industries
banking, iron and steel, food processing, chemicals, metal products, engineering, tires, glass, aluminum, information technology, tourism and banking

Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force: 293,700 (of whom 105,000 are foreign cross-border workers commuting primarily from France, Belgium, and Germany) (2004 est.)
Labor force - by occupation: agriculture 1%, industry 13%, services 86% (2004 est.)
Unemployment rate: 4.5% (December, 2004 est.)