Luxembourg: Economy#

This small, stable, high-income economy has historically featured solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, machinery and equipment, rubber, automotive components, and other products. The financial sector, which accounts for about 36% of GDP, is the leading sector in the economy. The economy depends on foreign and cross-border workers for about 39% of its labor force.

Luxembourg experienced uneven economic growth in the aftermath of the global economic crisis that began in late 2008. Luxembourg's GDP contracted 3.6% in 2009, rebounded in 2010-12, fell again in 2013-14, but recovered in 2015. Unemployment has remained below the EU average despite having increased from a historically low rate of 4% in the 2000s to 7.1% in 2014.

The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks among the highest in the world and is the highest in the euro zone. Luxembourg has one of the highest current account surpluses as a share of GDP in the euro zone, and it maintains a healthy budgetary position and the lowest public debt level in the region.

Luxembourg has lost some of its advantage as a favorable tax location because of OECD and EU pressure. In 2015, the government’s compliance with EU requirements to implement automatic exchange of tax information on savings accounts - thus ending banking secrecy - has depressed banking activity and dampened GDP growth. Likewise, changes to the way EU members collect taxes from e-commerce has cut Luxembourg’s tax revenues, requiring the government to raise additional levies and to reduce some direct social benefits.

Economic Facts#

GDP (purchasing power parity)$58.74 billion (2016 est.)
$56.75 billion (2015 est.)
$54.13 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$60.98 billion (2015 est.)
GDP - real growth rate3.5% (2016 est.)
4.8% (2015 est.)
4.1% (2014 est.)
GDP - per capita (PPP)$102,000 (2016 est.)
$100,800 (2015 est.)
$98,400 (2014 est.)
note: data are in 2016 dollars
Gross national saving23% of GDP (2016 est.)
23.3% of GDP (2015 est.)
24.8% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 27.9%
government consumption: 16.4%
investment in fixed capital: 17.5%
investment in inventories: 0.2%
exports of goods and services: 210.3%
imports of goods and services: -172.3% (2016 est.)
GDP - composition, by sector of originagriculture: 0.2%
industry: 11.1%
services: 88.7% (2016 est.)
Agriculture - productsgrapes, barley, oats, potatoes, wheat, fruits; dairy and livestock products
Industriesbanking and financial services, construction, real estate services, iron, metals, and steel, information technology, telecommunications, cargo transportation and logistics, chemicals, engineering, tires, glass, aluminum, tourism, biotechnology
Industrial production growth rate1.7% (2016 est.)
Labor force272,000
note: data exclude foreign workers; in addition to the figure for domestic labor force, about 150,000 workers commute daily from France, Belgium, and Germany (2016 est.)
Labor force - by occupationagriculture: 1.1%
industry: 20%
services: 78.9% (2013 est.)
Unemployment rate6.7% (2016 est.)
6.9% (2015 est.)
Population below poverty lineNA%
Household income or consumption by percentage sharelowest 10%: 3.5%
highest 10%: 23.8% (2000)
Distribution of family income - Gini index30.4 (2013 est.)
26 (2005 est.)
Budgetrevenues: $25.85 billion
expenditures: $25.52 billion (2016 est.)
Taxes and other revenues42.4% of GDP (2016 est.)
Budget surplus (+) or deficit (-)0.5% of GDP (2016 est.)
Public debt21.4% of GDP (2016 est.)
21.4% of GDP (2015 est.)
note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as int
Fiscal yearcalendar year
Inflation rate (consumer prices)-0.1% (2016 est.)
0.1% (2015 est.)
Central bank discount rate0.05% (31 December 2013)
0.3% (31 December 2010)
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 narrow money$232.6 billion (31 December 2016 est.)
$218.4 billion (31 December 2015 est.)
note: see entry for the EU for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circul
Stock of broad money$281.4 billion (31 December 2016 est.)
$271 billion (31 December 2015 est.)
Stock of domestic credit$110.5 billion (31 December 2016 est.)
$108.5 billion (31 December 2015 est.)
Market value of publicly traded shares$47.13 billion (31 December 2015 est.)
$63.17 billion (31 December 2014 est.)
$78.64 billion (31 December 2013 est.)
Current account balance$2.711 billion (2016 est.)
$3.189 billion (2015 est.)
Exports$17.1 billion (2016 est.)
$17.81 billion (2015 est.)
Exports - commoditiesmachinery and equipment, steel products, chemicals, rubber products, glass
Exports - partnersGermany 22.1%, Belgium 16.7%, France 16.6%, UK 4.7%, Italy 4.6%, Netherlands 4% (2015)
Imports$18.33 billion (2016 est.)
$20.22 billion (2015 est.)
Imports - commoditiescommercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods
Imports - partnersBelgium 27.6%, Germany 22.9%, China 11.7%, France 9.5%, US 8.4%, Netherlands 4.2%, Mexico 4.1% (2015)
Reserves of foreign exchange and gold$1 billion (31 December 2016 est.)
$771 million (31 December 2015 est.)
Debt - external$3.781 trillion (31 March 2016 est.)
$3.806 trillion (31 March 2015 est.)
Stock of direct foreign investment - at home$NA
$11.21 billion (31 December 2008 est.)
Stock of direct foreign investment - abroad$NA
Exchange rateseuros (EUR) per US dollar -
0.9214 (2016 est.)
0.885 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)
0.78 (2012 est.)