🇱🇺 Luxembourg

Luxembourg is a landlocked constitutional monarchy in Europe, home to 521,000 people, with its capital at Luxembourg.

Overview

Overview

Luxembourg at a glance

Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839 but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both world wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union), and in 1999 it joined the euro currency area. In January 2013, Luxembourg assumed a nonpermanent seat on the UN Security Council for the 2013-14 term.

Population
520.7K
#173 World#37 Europe
GDP (PPP)
$42.7B
#102 World#28 Europe
GDP per Capita
$77.9K
#7 World
Area
2.6Kkm²
#177 World#39 Europe
Military Spend
0.6%
#122 World#35 Europe
National Infrastructure

🇱🇺 Luxembourg’s critical and strategic infrastructure, sustaining output, agility and endurance

The National Infrastructure Index maps the physical assets national life runs on — power stations and grids, water systems, ports, railways and airports, data networks, payment systems and launch sites. Each asset is placed in a Strategic Infrastructure capability group, so it can be read against the ratings in the National Capability index above.

Assets are chosen for how much of the economy and state depends on them and how hard they would be to replace. Each card records what the asset is, the category it belongs to, what it does and where it is.

Placeholder

Example assets. These twenty cards are modelled on China's most critical infrastructure and show on every nation page until each nation's own assets are mapped.

EnergyWater, Sanitation & WasteTransportCommunications & DigitalFinancialSpace, Aerospace & DefenceResourceAgriculture & FoodAdvanced Manufacturing

Critical infrastructure assetsBack to top ↑

Three Gorges Dam

Energy

The world's largest hydropower station by installed capacity, at 22.5 GW, and the main flood-control structure on the Yangtze.

Yichang, Hubei

Baihetan Hydropower Station

Energy

A 16 GW dam on the Jinsha River, built around sixteen 1 GW turbines, the largest single units in service.

Qiaojia, Yunnan

Changji–Guquan UHVDC Line

Energy

A ±1,100 kV direct-current line carrying 12 GW more than 3,000 km from Xinjiang's power bases to the eastern grid.

Changji, Xinjiang

Daya Bay Nuclear Power Station

Energy

China's first large commercial nuclear plant, in service since 1994, with much of its output sold to Hong Kong.

Shenzhen, Guangdong

South–North Water Transfer, Middle Route

Water, Sanitation & Waste

A canal carrying Yangtze basin water more than 1,400 km north from the Danjiangkou Reservoir to Beijing and Tianjin.

Danjiangkou, Hubei

Beijing–Shanghai High-Speed Railway

Transport

The 1,318 km trunk line between the two largest cities, opened in 2011 and one of the busiest high-speed routes in the world.

Beijing

Port of Shanghai

Transport

The world's busiest container port since 2010, including the automated Yangshan deep-water terminals.

Shanghai

Ningbo-Zhoushan Port

Transport

The world's largest port by cargo tonnage, handling iron ore, crude oil and coal for the eastern industrial belt.

Ningbo, Zhejiang

Beijing Daxing International Airport

Transport

The capital's second international hub, opened in 2019 around one of the largest single terminal buildings in the world.

Beijing

Hong Kong–Zhuhai–Macao Bridge

Transport

A 55 km bridge and undersea tunnel system linking the western and eastern shores of the Pearl River Delta, opened in 2018.

Zhuhai, Guangdong

Qinghai–Tibet Railway

Transport

The 1,956 km line from Xining to Lhasa, crossing the Tanggula Pass at 5,072 m, the highest railway in the world.

Lhasa, Tibet

Gui'an National Computing Hub

Communications & Digital

One of eight national data centre hubs under the East Data, West Computing programme, hosting major cloud providers.

Guiyang, Guizhou

Beijing–Shanghai Quantum Backbone

Communications & Digital

A 2,000 km quantum key distribution trunk line through Jinan and Hefei, completed in 2017 for secure government and bank links.

Hefei, Anhui

Cross-Border Interbank Payment System

Financial

CIPS clears and settles cross-border payments in renminbi, launched in 2015 to extend the currency's international reach.

Shanghai

Wenchang Spacecraft Launch Site

Space, Aerospace & Defence

The coastal launch site for Long March 5 heavy-lift rockets, used for the Tiangong station modules and lunar and Mars missions.

Wenchang, Hainan

Jiuquan Satellite Launch Center

Space, Aerospace & Defence

China's first launch site, founded in 1958 in the Gobi Desert, and the base for every crewed Shenzhou mission.

Jiuquan, Gansu

BeiDou Navigation Satellite System

Space, Aerospace & Defence

The national satellite navigation system, providing global positioning and timing since 2020 from its Beijing control segment.

Beijing

Bayan Obo Mining District

Resource

The world's largest known rare-earth deposit and the core of China's rare-earth mining and refining supply chain.

Baotou, Inner Mongolia

Dujiangyan Irrigation System

Agriculture & Food

A weir and channel system built around 256 BC that still irrigates much of the Chengdu Plain's farmland.

Dujiangyan, Sichuan

Yangtze Memory Technologies Fab

Advanced Manufacturing

China's leading maker of 3D NAND flash memory, central to the drive for a domestic semiconductor supply.

Wuhan, Hubei
National Developments

🇱🇺 Luxembourg’s major milestones and key developments

The National Development Index tracks the events that move a nation's capability — policy decisions, technological milestones, economic turns and external shocks — and places each one on the record with the date it happened and what followed from it. It is the narrative counterpart to the indices: where a rating says where Luxembourg stands, the index says how it arrived there.

Recent developments cover the current cycle, close enough that their consequences are still unfolding. Historical developments are the inflection points behind the present position — the decisions and events a reader needs in order to read the ratings above in context.

GeopoliticalGovernanceSecurityTechnologyEconomyEnvironmentSociety

Historical Developments

6th century BCCeltic tribes settled the region between the Rhine and Meuse, later named the Treveri by Rome 2626 years ago

From the 6th century BC Celtic tribes occupied the territory of modern Luxembourg. The Romans later collectively named them the Treveri, and archaeological remains such as the Oppidum of Titelberg attest to their presence.

58–51 BCJulius Caesar conquered Gaul, bringing the territory into the Roman Empire

Roman conquest incorporated the area of present-day Luxembourg into the Empire for some 450 years of relative peace under the Pax Romana. The local Celts adopted Roman culture and language, producing a Gallo-Roman civilisation evidenced by Dalheim Ricciacum and the Vichten mosaic.

5th centuryRome abandoned the territory, which passed to the Kingdom of the Franks 1626 years ago

Germanic Franks infiltrated the region from the 4th century, and Rome withdrew in 406. The Salian Franks who settled brought the old Frankish tongue, forerunner of the Moselle Franconian dialect from which Luxembourgish later evolved.

7th centuryWillibrord founded the Abbey of Echternach 1426 years ago

The Northumbrian missionary and fellow monks established Echternach in 698, anchoring the Christianisation of Luxembourg dated to the late 7th century. The abbey became one of northern Europe's most influential, producing the Codex Aureus of Echternach and the Golden Gospels of Henry III, and is commemorated in the annual dancing procession.

843The Carolingian Empire was divided by the Treaty of Verdun, placing the territory in successive middle kingdoms 1183 years ago

After 843 Luxembourgish territory passed through Middle Francia, Lotharingia and finally the Duchy of Lorraine within the Holy Roman Empire. These partitions set the frame within which a distinct Luxembourgish polity would later emerge.

963Siegfried, Count of Ardennes acquired the Bock promontory and built Lucilinburhuc castle 1063 years ago

Siegfried, Count of the Ardennes, obtained the fortified rock of Lucilinburhuc on the Bock, a rocky outcrop above the Alzette river, from St Maximin's Abbey in Trier through an exchange act. A town grew around the fort, giving its name to the town and county that developed there, and the recorded history of Luxembourg begins from this date; the site's strategic position made Luxembourg a fortified stronghold for centuries.

1083Conrad I first styled himself Count of Luxembourg 943 years ago

Siegfried's descendant took the comital title, effectively creating the County of Luxembourg as a state within the Holy Roman Empire. The county's fortress and strategic position underpinned its subsequent expansion.

1264The counts of Luxembourg absorbed the County of Vianden and expanded from the Meuse to the Moselle 762 years ago

By the mid-13th century the counts had gained considerable wealth and power, incorporating Bitburg, La Roche-en-Ardenne, Durbuy, Arlon, Thionville, Marville, Longwy and in 1264 the competing County of Vianden. Expansion came largely through inheritance, marriage and fiefdoms rather than conquest.

1288Henry VI died with three brothers at the Battle of Worringen 738 years ago

The counts' attempt to add the Duchy of Limburg ended in defeat and the death of Henry VI and his brothers. Despite the setback, Worringen won the House of Luxembourg the military glory it had previously lacked.

1312Henry VII was crowned Holy Roman Emperor 714 years ago

After becoming King of the Romans and King of Italy, Henry VII attained the imperial crown in 1312. The House of Luxembourg thereby began to rule the Empire and to exert growing influence across Central Europe.

1340John the Blind founded the Schueberfouer 686 years ago

The Count of Luxembourg and King of Bohemia established the fair that remains a fixture of national life. John, who died heroically at Crécy in 1346, is regarded as a national hero and the epitome of mediaeval chivalry.

1354Charles IV elevated Luxembourg to a duchy under Wenceslaus I 672 years ago

The Emperor raised the county to ducal status, with his half-brother Wenceslaus I becoming the first Duke of Luxembourg. Charles IV had also issued the Golden Bull of 1356, fixing key constitutional aspects of the Empire.

1364Wenceslaus I annexed the County of Chiny, taking the duchy to its greatest extent 662 years ago

The first Duke of Luxembourg absorbed Chiny while his kin ruled the Empire. The new Duchy of Luxembourg thereby reached its maximum territorial extent.

1443The House of Luxembourg became extinct in a succession crisis, ceding the duchy to Burgundy 583 years ago

With Sigismund and Elizabeth of Görlitz heirless, the dynasty's possessions were redistributed among the European aristocracy and the duchy passed to Philip the Good of Burgundy. Luxembourg's absorption into the Burgundian Netherlands began nearly 400 years of foreign rule.

1482Philip the Handsome inherited the duchy with the Habsburg Netherlands 544 years ago

Luxembourg passed to the House of Habsburg, remaining a Habsburg possession for nearly 320 years under Austrian rule (1506–1556), Spanish rule (1556–1714) and Austrian rule again (1714–1794). As a Habsburg holding it was drawn into the recurrent wars with France.

1542François I of France invaded Luxembourg twice, only to be repulsed by Charles V 484 years ago

The French king struck at the duchy twice in 1542, but Habsburg forces under Charles V reconquered it each time. The episode opened a long era of Franco-Habsburg contest over Luxembourg's fortress.

1659Spain ceded Stenay, Thionville and Montmédy at the Treaty of the Pyrenees 367 years ago

War between France and Spain from 1635 ended in a treaty imposing the first partition of Luxembourg. The loss of these fortresses and surrounding territory reduced the duchy's size for the first time in centuries.

1684France conquered and occupied the duchy during the Nine Years' War 342 years ago

French forces held Luxembourg from 1684 until 1697, when it was returned to Spain to win Bourbon support ahead of the War of the Spanish Succession. Vauban and other engineers greatly strengthened the fortress during these occupations.

1714The Duchy of Luxembourg was awarded to Austria at the close of the War of the Spanish Succession 312 years ago

Administered by the pro-French governor Maximilian II Emanuel when war broke out in 1701, the duchy sided with the Bourbons but was occupied by pro-Austrian allied forces. Its transfer to Austria in 1714 opened the final phase of Habsburg rule.

1793–1794Revolutionary France conquered the duchy after the siege of the Fortress of Luxembourg 233 years ago

French armies overran most of the duchy, committing atrocities including the massacres of Differdange and Dudelange and destroying the abbeys of Clairefontaine, Echternach and Orval. The fortress held out for nearly seven months, prompting Lazare Carnot to call it the best fortress in the world except Gibraltar and giving the city its nickname, the Gibraltar of the North.

1797France annexed Luxembourg as the département des forêts 229 years ago

The incorporation of the former duchy into France was formalised at the Treaty of Campo Formio. French became the sole official language, laicism was imposed and Luxembourgers were barred from civil service posts.

1798Luxembourgish peasants rose against French conscription in the Klëppelkrich 228 years ago

The introduction of military duty triggered riots that culminated in open rebellion. The French suppressed the revolt rapidly, but it left a profound mark on the country's historical memory.

1804France introduced the Napoleonic Code Civil 222 years ago

The civil code was implemented during the French period and remains valid in Luxembourg today. It is the most durable of the republican-era legal legacies in the country.

1815The Congress of Vienna restored Luxembourg as a Grand Duchy in personal union with the Netherlands 211 years ago

After Napoleon's defeat the powers made Luxembourg a member of the German Confederation while joining it to the Netherlands under William I, with a Prussian garrison in the fortress. Territory around Bitburg and St Vith went to Prussia in the Second Partition, and the duchy was elevated to grand-ducal rank in compensation. From 1816 to 1830 William I ignored its sovereignty and taxed it heavily.

1839The Treaty of London partitioned Luxembourg, ceding the western part to Belgium 187 years ago

The Treaty of London settled Belgium's claim to the whole Grand Duchy after its 1830–31 revolution by transferring the predominantly francophone western half, plus the Arelerland, to the new Kingdom of Belgium in this Third Partition. The smaller, Germanic-speaking eastern remainder stayed a Grand Duchy under the Dutch crown, gaining full independence and the country's present frontiers.

1842Luxembourg joined the German Customs Union, the Zollverein 184 years ago

Accession opened the German market to Luxembourgish producers. It underpinned the growth of the steel industry and the expansion of the railway network between 1855 and 1875.

1867The Second Treaty of London guaranteed Luxembourg's independence and perpetual neutrality 159 years ago

The Second Treaty of London resolved the Luxembourg Crisis of 1866, sparked by France's attempt to buy the Grand Duchy from the Dutch king, which had nearly brought Prussia and France to war. The great powers reaffirmed Luxembourg's independence and perpetual neutrality, and Prussia withdrew its garrison on condition that the fortress was dismantled; the neutrality held when the Franco-Prussian War came in 1870.

October 1868Luxembourg adopted its Constitution 158 years ago

The constitution adopted on 17 October 1868 remains the supreme law of Luxembourg. It has been amended repeatedly, most recently on 1 July 2023.

1890Luxembourg separated from the Netherlands on the death of William III 136 years ago

On the death of William III the personal union with the Netherlands ended: because Luxembourg's succession law barred women from the throne, the crown passed not to the new Dutch queen but to Adolphe of Nassau-Weilburg, who founded a separate national dynasty. This completed the country's progress to full independence amid a 19th-century national awakening expressed in the motto Mir wëlle bleiwe wat mir sinn.

20th centuryLuxembourg absorbed large-scale immigration, chiefly Portuguese 126 years ago

Arrivals from Belgium, France, Italy, Germany and above all Portugal transformed the population; immigrants were 37% of the total by 2000. In 2025, 47% of the 681,973 permanent residents were foreign nationals, with over 10,000 new immigrants a year.

August 1914Imperial Germany violated Luxembourg's neutrality and occupied the country 112 years ago

German forces invaded en route to attacking France, though Luxembourg retained much of its independence and political machinery under occupation. The government pursued strict neutrality, unaware of the Septemberprogramm's secret annexation plans, while about 1,000 Luxembourgers served in the French army.

November 1918The Chamber of Deputies narrowly rejected a motion to abolish the monarchy 108 years ago

The motion fell by 21 votes to 19 with three abstentions amid post-war republican agitation. Communists in Luxembourg City and Esch-sur-Alzette had briefly attempted to proclaim a soviet workers' republic after the German retreat.

January 1919Grand Duchess Marie-Adélaïde abdicated in favour of Charlotte after an army rebellion 107 years ago

A company of the Luxembourgish Army declared itself the army of a new republic before French troops suppressed it, and the grand duchess abdicated five days later. A referendum the same year saw 77.8% back retention of the monarchy, and Belgian annexation claims were dismissed at the Paris Peace Conference, securing independence.

1921Luxembourg and Belgium formed the Belgium–Luxembourg Economic Union 105 years ago

BLEU created a regime of inter-exchangeable currency and a common customs area. It bound the small Grand Duchy's economy to a larger neighbour after the loss of the Zollverein link.

1940–45Luxembourg lost 2.45% of its prewar population and a third of its buildings 86 years ago

Wartime losses, largely from the Battle of the Bulge, were the highest in Western Europe in proportional terms. Between 1,000 and 2,500 of Luxembourg's Jews were murdered in the Holocaust, while the country's commitment to the Allied effort was never questioned.

Recent Developments

August 2026STATEC forecast 1.8 per cent inflation for 2026 this month

Luxembourg's statistics institute revised its forecast on 5 August 2026 and projected that the next automatic wage and pension indexation would not be triggered until the third quarter of 2027.

August 2026The Ministry of Mobility and Public Works confirmed a cybersecurity incident on its mConcept website this month

The ministry disclosed the breach on 7 August 2026, saying it was working to establish its cause and scale. It did not immediately confirm whether personal data had been compromised.

July 2026The government approved a draft law regulating defence manufacturing last month

The bill, cleared on 17 July 2026, establishes Luxembourg's first legal framework for domestic defence production. It comes amid a wider European push to expand domestic defence-industrial capacity.

The Government Council also approved energy and housing measures
July 2026Luxembourg sent an aircraft and 15 firefighters to help fight wildfires in France last month

The deployment, announced on 29 July 2026 by the Ministry of State, the Ministry for Home Affairs and the Grand Ducal Fire and Rescue Corps, sent personnel to help fight wildfires burning in France that summer.

June 2026Wages and pensions rose by 2.5 per cent under automatic indexation 2 months ago

STATEC confirmed the increase, effective from 1 June 2026, under Luxembourg's index-linked system that automatically adjusts pay and benefits to consumer prices.

May 2026Prime Minister Luc Frieden delivered his State of the Nation address 3 months ago

Speaking to the Chamber of Deputies on 19 May 2026, Frieden highlighted social cohesion and economic growth as government priorities for the year ahead.

April 2026Blue Origin confirmed plans to open a European office in Luxembourg 4 months ago

The announcement came during a ministerial visit to the Space Symposium in Colorado Springs in April 2026, adding to the roster of space companies based in Luxembourg alongside its established space-resources and satellite sectors.

2026Luxembourg became the second country to enshrine abortion access in its constitution

The constitutional guarantee followed France's in 2024. It marked a further consolidation of rights within the country's fundamental law, updated most recently in July 2023.

December 2025Georges Mischo resigned as minister for labour and sports 8 months ago

Mischo stepped down on 11 December 2025 amid controversy over his relationship with trade unions. He was initially replaced by Marc Spautz and Martine Hansen.

The Chamber of Deputies swore in a reshuffled line-up of deputies
October 2025Henri, Grand Duke of Luxembourg abdicated in favour of his son Guillaume V 10 months ago

Henri stepped down as head of state on 3 October 2025 after 25 years on the throne, and Guillaume V was enthroned the same day in a ceremony in Luxembourg City.

September 2025Luxembourg formally recognised the State of Palestine 11 months ago

The government announced recognition on 22 September 2025, alongside other states, at a United Nations General Assembly session on the Israeli-Palestinian conflict.

December 2023The Chamber of Deputies adopted a law modernising the investment tax credit 3 years ago

The law was passed on 19 December 2023 and took effect on 1 January 2024. It formed part of efforts to keep the economy competitive in attracting investment.

February 2020Luxembourg became the first country to make public transport free nationwide 6 years ago

From 29 February 2020 all buses, trains and trams were provided at no charge, funded almost entirely from taxation. Ridership has grown consistently since, though operating costs had nearly doubled by 2025.

2020sLuxembourg set a target of 55% emissions cuts by 2030 and net zero by 2050 6 years ago

The national climate law commits the country to halving greenhouse gas emissions within a decade and reaching zero emissions by 2050, with 49% of cars electric by 2030. Luxembourg ranked second of 180 countries on the 2020 Environmental Performance Index and second again in 2024, though its Forest Landscape Integrity Index score was among the world's lowest.

December 2017Luxembourg City reintroduced trams after decades without them 9 years ago

The capital restored tram services as part of a wider transport modernisation that included a TGV link to Paris and a new Luxembourg Airport terminal in 2008. Light-rail lines to Esch-sur-Alzette are planned by 2030.

2015Luxembourg amended its marriage law to include same-sex couples 11 years ago

The reform extended civil marriage rights regardless of sex. It placed the Grand Duchy among the earlier European states to legislate marriage equality.

November 2014LuxLeaks disclosures exposed Luxembourg as a hub of corporate tax avoidance 12 years ago

Leaked documents revealed the scale of tax arrangements developed under Jean-Claude Juncker's premiership, days after he became head of the European Commission. The affair damaged the country's reputation and intensified pressure on its fiscal regime.

January 2013Luxembourg assumed a seat on the UN Security Council 13 years ago

Luxembourg took up a non-permanent seat on the UN Security Council for the 2013–14 term, having been elected to it for the first time in the country's history — a marker of diplomatic standing disproportionate to its size.

2010The Luxembourg Government launched a national very-high-speed network strategy 16 years ago

The plan aimed at global leadership in broadband with full 1 Gbit/s coverage by 2020. NGA coverage reached 75% by 2011 and the country ranked among world leaders in ICT development and data-centre performance.

April 2009The G20 placed Luxembourg on a grey list over banking secrecy 17 years ago

Concern about banking secrecy laws and the country's reputation as a tax haven prompted the listing. Luxembourg ranked third on the Tax Justice Network's 2011 Financial Secrecy Index and second safest tax haven in 2013.

2002The euro replaced the Luxembourg franc 24 years ago

Euro notes and coins entered circulation in January 2002, three years after Luxembourg adopted the currency for accounting purposes as a founding eurozone member, ending the franc's use after more than a century.

1999Luxembourg joined the eurozone 27 years ago

The Grand Duchy adopted the single currency at its launch, consistent with its role in monetary integration through Pierre Werner. Currency union reinforced its position as a financial centre.

1994Luxembourg City was declared a UNESCO World Heritage Site 32 years ago

The listing recognised the exceptional preservation of the city's vast fortifications and historic quarters. It anchored the capital's international cultural standing.

1993Luxembourg saw the Communities incorporated into the European Union 33 years ago

The ECSC and EEC frameworks in which Luxembourg had been a founding participant were folded into the EU. The country's disproportionate influence in European institutions continued through its leading politicians.

1988Luxembourg established a tax scheme for audiovisual investment 38 years ago

The 1988 law created a special fiscal regime for film investment. Film production and co-production have grown steadily since, and Luxembourg won an Oscar for the animated short Mr Hublot in 2014.

1985Five European states signed the Schengen Agreement near Luxembourg 41 years ago

France, West Germany and the Benelux countries signed the agreement on a boat on the Moselle river near the village of Schengen, laying the basis for the passport-free travel area that later expanded across most of Europe.

1984Luxembourg passed the Language Regimen Act making Luxembourgish the national language 42 years ago

The 1984 law designated Luxembourgish as the sole national language while obliging administrations to reply, so far as possible, in Luxembourgish, German or French according to the language of the enquiry. Trilingualism remains central to national identity, with French known by 98% of citizens in 2018.

1970sLuxembourg pivoted to finance and a knowledge economy after the steel decline 56 years ago

Steel exploiting the Red Lands' iron-ore deposits had driven industrialisation from the early 20th century, but the sector declined in the 1970s. The country reinvented itself as a global banking hub and, from the 21st century, pursued a knowledge economy with the University of Luxembourg and a national space programme.

March 1957Luxembourg co-founded the European Economic Community 69 years ago

In 1957 Luxembourg became one of the six founding countries of the EEC, the forerunner of the European Union, under the Treaty of Rome.

1952Luxembourg co-founded the European Coal and Steel Community 74 years ago

The Grand Duchy was one of the six founding states of the European Communities, followed by the EEC and Euratom in 1958. Luxembourgish figures including Robert Schuman, Pierre Werner, Gaston Thorn, Jacques Santer and Jean-Claude Juncker shaped the European project.

1952Luxembourg City became the seat of the European Coal and Steel Community's High Authority 74 years ago

The High Authority, the executive body of the newly formed community and forerunner of the European Commission, began work in the city under President Jean Monnet, starting Luxembourg's role as a seat of European institutions.

April 1949Luxembourg became a founding member of NATO 77 years ago

In April 1949 Luxembourg became a founding member of NATO alongside 11 other states, membership having been made possible by the 1948 constitutional amendment that ended its century-old neutrality. Accession aligned the Grand Duchy firmly with the Western Bloc for the duration of the Cold War; it later sent a small contingent to the Korean War and deployed troops to Afghanistan with ISAF.

1948Luxembourg formally ended its constitutional neutrality 78 years ago

The neutral status enshrined since the 19th century was removed from the constitution. This cleared the way for the country to enter Western collective defence arrangements.

1945The Grand Duchy became a founding member of the United Nations 81 years ago

Luxembourg joined the new world body at its creation. Membership marked the definitive abandonment of isolation in favour of multilateral engagement.

May 1940Nazi Germany invaded and occupied neutral Luxembourg 86 years ago

Luxembourg closed the Schuster Line on 9 May 1940 and the Wehrmacht invaded the next day despite the country's declared neutrality, with Germany treating it as German territory and informally annexing it into Gau Moselland rather than administering it as an occupied neutral. The government in exile in London backed the Allies, volunteers took part in the Normandy invasion and resistance groups formed at home; the occupation, marked by forced conscription and resistance, ended with Allied liberation in September 1944.

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Historical Context

🇱🇺 Luxembourg’s understanding the origins and evolution of the modern nation

Capital
Luxembourg
Government
constitutional monarchy
Independence
1.8K
Population·2014
520.7K
GDP (PPP)
—

BackgroundBack to top ↑

Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839 but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both world wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union), and in 1999 it joined the euro currency area. In January 2013, Luxembourg assumed a nonpermanent seat on the UN Security Council for the 2013-14 term.

IndependenceBack to top ↑

1839 (from the Netherlands)

National holidayBack to top ↑

National Day (birthday of Grand Duchess Charlotte) 23 June; note - the actual date of birth was 23 January 1896, but the festivities were shifted by five months to allow observance during a more favorable time of year

Geography

🇱🇺 Luxembourg’s territory, resources and strategic position

Area
2.6Kkm²
Land Boundaries
359km
Coastline
0km
Maritime Claims
none
Land Use
23.9%

Location and areaBack to top ↑

Location

Western Europe, between France and Germany

Geographic coordinates

49 45 N, 6 10 E

Map references

Europe

Area
total:2,586 sq km
land:2,586 sq km
water:0 sq km
Area — comparative

slightly smaller than Rhode Island

Land boundaries
total:359 km
border countries:Belgium 148 km, France 73 km, Germany 138 km
Coastline

0 km (landlocked)

Maritime claims

none (landlocked)

Terrain and resourcesBack to top ↑

Terrain

mostly gently rolling uplands with broad, shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle flood plain in the southeast

Natural resources

iron ore (no longer exploited), arable land

Land use
arable land:23.9%
permanent crops:0.58%
other:75.52% (includes Belgium) (2011)
Irrigated land

NA

Settlement and hazardsBack to top ↑

Natural hazards

NA

Geography note

landlocked; the only Grand Duchy in the world

OtherBack to top ↑

Elevation extremes
lowest point:Moselle River 133 m
highest point:Buurgplaatz 559 m
Total renewable water resources

3.1 cu km (2011)

Freshwater withdrawal (domestic/industrial/agricultural)
total:0.06 cu km/yr (65%/33%/1%)
per capita:135.9 cu m/yr (2010)
Environment - current issues

air and water pollution in urban areas, soil pollution of farmland

Environment - international agreements
party to:Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands
signed, but not ratified:Environmental Modification
Environment

🇱🇺 Luxembourg’s environmental conditions, resources and national resilience

Carbon Dioxide Emissions
—
Methane Emissions
—
Particulate Matter Emissions
—
Total Water Withdrawal
—
Waste and Recycling
—

Conditions and issuesBack to top ↑

Climate

modified continental with mild winters, cool summers

Critical Technology

🇱🇺 Luxembourg’s technology frontiers and the pursuit of national advantage

Large-Scale AI Systems
—
Cumulative Launched
—
Space Agency
—
Launch Sites
—
Programme
—

Technology systemsBack to top ↑

GINC data

Capability-group ratings for Critical Technology are part of the GINC National Capability Framework rather than the country factbook. They are published in the National Capability index, and the per-capability detail lives on the capability pages.

Medicine and BioTechBack to top ↑

Clinical research and life-science invention, drawn from the same series that drive the metric pages. Each card opens the full cross-country comparison.

Clinical Trials·2024
3
#94 World
20002024
Life Science Patents·2023
271
#15 World
19802023

Space programmeBack to top ↑

🇱🇺Luxembourg
Objects Launched into Space
Annual number of objects launched into outer space, 1950–2025. Luxembourg is highlighted; other major launchers are shown in grey.
LuxembourgOther major launchers
01K2K3K4K
1950198020002025
Source. UN Office for Outer Space Affairs (2026).
🇱🇺Luxembourg
Cumulative Objects Launched
Cumulative number of objects launched into outer space, 1950–2025. Luxembourg is highlighted; other major launchers are shown in grey.
LuxembourgOther major launchers
05K10K15K20K
1950198020002025
Source. UN Office for Outer Space Affairs (2026).
Strategic Infrastructure

🇱🇺 Luxembourg’s energy, connectivity and the material foundations of capability

Airports·2013
2
Railways
275km
Ports
—
Electricity Access
—
Internet Users·2009
424.5K

TransportBack to top ↑

Airports

2 (2013)

Heliports

1 (2013)

Railways
total:275 km
standard gauge:275 km 1.435-m gauge (243 km electrified) (2008)
Merchant marine
total:49
by type:bulk carrier 2, cargo 3, chemical tanker 20, container 10, petroleum tanker 2, roll on/roll off 12
foreign-owned:48 (Belgium 11, Denmark 1, France 15, Germany 9, Japan 3, Netherlands 3, Switzerland 1, UK 5)
registered in other countries:18 (Italy 14, Malta 3, Panama 1) (2010)

Digital connectivityBack to top ↑

Telephones - mobile cellular

761,300 (2012)

Internet users

424,500 (2009)

Internet country code

.lu

OtherBack to top ↑

Electricity - production

2.07 billion kWh (2011 est.)

Electricity - consumption

6.445 billion kWh (2010 est.)

Electricity - exports

2.623 billion kWh (2012 est.)

Electricity - imports

6.684 billion kWh (2012 est.)

Electricity - installed generating capacity

1.723 million kW (2010 est.)

Electricity - from fossil fuels

28.3% of total installed capacity (2010 est.)

Electricity - from nuclear fuels

0% of total installed capacity (2010 est.)

Electricity - from hydroelectric plants

2% of total installed capacity (2010 est.)

Electricity - from other renewable sources

5.9% of total installed capacity (2010 est.)

Crude oil - production

0 bbl/day (2012 est.)

Crude oil - exports

0 bbl/day (2010 est.)

Crude oil - imports

0 bbl/day (2010 est.)

Crude oil - proved reserves

0 bbl (1 January 2013 est.)

Refined petroleum products - production

0 bbl/day (2010 est.)

Refined petroleum products - consumption

61,380 bbl/day (2011 est.)

Refined petroleum products - exports

52 bbl/day (2010 est.)

Refined petroleum products - imports

56,780 bbl/day (2010 est.)

Natural gas - production

0 cu m (2011 est.)

Natural gas - consumption

1.364 billion cu m (2010 est.)

Natural gas - exports

0 cu m (2011 est.)

Natural gas - imports

1.206 billion cu m (2012 est.)

Natural gas - proved reserves

0 cu m (1 January 2013 est.)

Carbon dioxide emissions from consumption of energy

11.87 million Mt (2011 est.)

Telephones - main lines in use

266,700 (2012)

Telephone system
general assessment:highly developed, completely automated and efficient system, mainly buried cables
domestic:fixed line teledensity over 50 per 100 persons; nationwide mobile-cellular telephone system with market for mobile-cellular phones virtually saturated
international:country code - 352 (2010)
Internet hosts

250,900 (2012)

Airports - with paved runways
total:1
over 3,047 m:1 (2013)
Airports - with unpaved runways
total:1
under 914 m:1 (2013)
Pipelines

gas 142 km; refined products 27 km (2013)

Roadways
total:2,899 km
paved:2,899 km (includes 152 km of expressways) (2011)
Waterways

37 km (on Moselle River) (2010)

Ports and terminals
river port(s):Mertert (Moselle)
National Security

🇱🇺 Luxembourg’s force, intelligence and the defence of the nation

Armed Forces Personnel
—
Military Personnel
—
Military Spending
—
Spending (% of GDP)
—
Armed Forces (% of Labour Force)
—

Forces and expenditureBack to top ↑

Military expenditures

0.6% of GDP (2012)//0.61% of GDP (2011)//0.6% of GDP (2010)

Personnel and equipmentBack to top ↑

Military service age and obligation

18-24 years of age for male and female voluntary military service; no conscription; Luxembourg citizen or EU citizen with 3-year residence in Luxembourg (2012)

Forces under armsBack to top ↑

Active-duty strength on the Correlates of War series, which reaches back to 1816 and so carries a nation’s whole record of mobilisation rather than its present establishment. The card opens the full cross-country comparison.

Military Personnel·2022
0
#164 World
18162022

OtherBack to top ↑

Military branches

Luxembourg Army (L'Armee Luxembourgeoises) (2013)

Manpower available for military service
males age 16-49:118,665
females age 16-49:117,456 (2010 est.)
Manpower fit for military service
males age 16-49:97,290
females age 16-49:96,361 (2010 est.)
Manpower reaching militarily significant age annually
male:3,263
female:3,084 (2010 est.)
Human Capital

🇱🇺 Luxembourg’s population, health and the skills that sustain capability

Population·2014
520.7K
Median Age
39.6years
Generative AI Use
—
Life Expectancy at Birth
80years
Total Fertility Rate·2014
1.8children born/woman

DemographyBack to top ↑

Population

520,672 (July 2014 est.)

Nationality
noun:Luxembourger(s)
adjective:Luxembourg
Age structure
0-14 years:17.9% (male 47,968/female 45,100)
15-24 years:12.7% (male 33,657/female 32,212)
25-54 years:42.1% (male 109,528/female 109,662)
55-64 years:12% (male 31,076/female 31,212)
65 years and over:15.2% (male 33,892/female 46,365) (2014 est.)
Dependency ratios
total dependency ratio:46.6 %
youth dependency ratio:25.6 %
elderly dependency ratio:21 %
potential support ratio:4.8 (2014 est.)
Median age
total:39.6 years
male:38.5 years
female:40.7 years (2014 est.)
Population growth rate

1.12% (2014 est.)

Birth rate

11.75 births/1,000 population (2014 est.)

Death rate

8.53 deaths/1,000 population (2014 est.)

Sex ratio
at birth:1.07 male(s)/female
0-14 years:1.06 male(s)/female
15-24 years:1.05 male(s)/female
25-54 years:1 male(s)/female
55-64 years:0.97 male(s)/female
65 years and over:0.71 male(s)/female
total population:0.97 male(s)/female (2014 est.)
Total fertility rate

1.77 children born/woman (2014 est.)

Mother's mean age at first birth

30.2

data are based on events and not on fertility rates (2012 est.)

Migration and urbanisationBack to top ↑

Net migration rate

7.97 migrant(s)/1,000 population (2014 est.)

Urbanisation
urban population:85.4% of total population (2011)
rate of urbanization:1.62% annual rate of change (2010-15 est.)
Major urban areas — population

LUXEMBOURG (capital) 94,000 (2011)

HealthBack to top ↑

Life expectancy at birth
total population:80.01 years
male:76.77 years
female:83.46 years (2014 est.)
Infant mortality rate
total:4.28 deaths/1,000 live births
male:4.32 deaths/1,000 live births
female:4.24 deaths/1,000 live births (2014 est.)
Hospital bed density

5.4 beds/1,000 population (2010)

Drinking water source
improved:urban: 100% of population; rural: 100% of population; total: 100% of population
unimproved:urban: 0% of population; rural: 0% of population; total: 0% of population (2012 est.)
Sanitation facility access
improved:urban: 100% of population; rural: 100% of population; total: 100% of population
unimproved:urban: 0% of population; rural: 0% of population; total: 0% of population (2012 est.)
Obesity — adult prevalence rate

26% (2008)

EducationBack to top ↑

Literacy
definition:age 15 and over can read and write
total population:100%
male:100%
female:100% (2000 est.)
School life expectancy (primary to tertiary education)
total:14 years
male:14 years
female:14 years (2010)

Welfare and equityBack to top ↑

Population below poverty line

NA%

Household income or consumption by percentage share
lowest 10%:3.5%
highest 10%:23.8% (2000)

OtherBack to top ↑

Maternal mortality rate

20 deaths/100,000 live births (2010)

Health expenditures

7.7% of GDP (2011)

Physicians density

2.78 physicians/1,000 population (2011)

HIV/AIDS - adult prevalence rate

0.3% (2009 est.)

HIV/AIDS - people living with HIV/AIDS

fewer than 1,000 (2009 est.)

HIV/AIDS - deaths

fewer than 100 (2009 est.)

Education expenditures

3.7% of GDP (2001)

Unemployment, youth ages 15-24
total:18.8%
male:18.9%
female:18.6% (2012)
Disputes - international

none

Governance and Integrity

🇱🇺 Luxembourg’s institutions, law and the integrity of the state

Government
constitutional monarchy
Capital
Luxembourg
Administrative Divisions
3districts; Diekirch, Greven…
Independence
1.8K
Suffrage
18years of age; universal and…

State structureBack to top ↑

Country name
conventional long form:Grand Duchy of Luxembourg
conventional short form:Luxembourg
local long form:Grand Duche de Luxembourg
local short form:Luxembourg
Government type

constitutional monarchy

Capital
name:Luxembourg
geographic coordinates:49 36 N, 6 07 E
time difference:UTC+1 (6 hours ahead of Washington, DC, during Standard Time)
daylight saving time:+1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions

3 districts; Diekirch, Grevenmacher, Luxembourg

Constitution

previous 1842 (heavily amended 1848, 1856); latest effective 17 October 1968; amended many times, last in 2008 (2008)

Suffrage

18 years of age; universal and compulsory

Legal systemBack to top ↑

Legal system

civil law system

International law organisation participation

accepts compulsory ICJ jurisdiction; accepts ICCt jurisdiction

Political institutionsBack to top ↑

Executive branch
chief of state:Grand Duke HENRI (since 7 October 2000); Heir Apparent Prince GUILLAUME (son of the monarch, born 11 November 1981)
head of government:Prime Minister Xavier BETTEL (since 4 December 2013); Deputy Prime Minister Etienne SCHNEIDER (since 4 December 2013)
cabinet:Council of Ministers recommended by the prime minister and appointed by the monarch
elections:the monarchy is hereditary; following popular elections to the Chamber of Deputies, the leader of the majority party or the leader of the majority coalition usually appointed prime minister by the monarch; the deputy prime minister appointed by the monarch; the prime minister and deputy prime minister are responsible to the Chamber of Deputies
government coalition - DP, LSAP, and the Green Party (first time since 1979 that the CSV is in opposition)
Legislative branch

unicameral Chamber of Deputies or Chambre des Deputes (60 seats; members elected by popular vote to serve five-year terms)

there is also a Council of State that serves as an advisory body to the Chamber of Deputies; the Council of State has 21 members appointed by the Grand Duke on the advice of the prime minister
Judicial branch
highest court(s):Superior Court of Justice includes Court of Appeal and Court of Cassation (consists of 27 judges on 9 benches); Constitutional Court (consists of 9 members)
judge selection and term of office:judges of both courts appointed by the monarch for life
subordinate courts:district and local tribunals and courts

OtherBack to top ↑

Political parties and leaders

Alternative Democratic Reform Party or ADR [Jean SCHOOS]//Christian Social People's Party or CSV [Michel WOLTER]//The Left (dei Lenk/la Gauche) [Serge URBANY]//Democratic Party or DP [Xavier BETTEL]//Green Party [Sam TANSON and Christian KMIOTEK]//Luxembourg Socialist Workers' Party or LSAP [Alex BODRY]//other minor parties

Political pressure groups and leaders

ABBL (bankers' association) [Ernst Wilhelm CONTZEN]//ALEBA (financial sector trade union) [Marc GLESENER]//Centrale Paysanne (federation of agricultural producers) [Marc FISCH]//CEP (professional sector chamber) [Stephane LIA]//CGFP (trade union representing civil service) [Joseph DALEIDEN]//Chamber of Commerce (Chambre de Commerce) [Carlo THELEN]//Chamber of Artisans (Chambre des Metiers) [Roland KUHN]//FEDIL (federation of industrialists) [Nicolas SOISSON]//Greenpeace (environment protection) [Kumi NAIDOO]//LCGP (center-right trade union) [Patrick DURY]//Mouvement Ecologique (environment protection) [Blanche WEBER]//OGBL (center-left trade union) [Jean-Claude REDING]

Flag description

three equal horizontal bands of red (top), white, and light blue; similar to the flag of the Netherlands, which uses a darker blue and is shorter; the coloring is derived from the Grand Duke's coat of arms (a red lion on a white and blue striped field)

National anthem
name:"Ons Heemecht" (Our Motherland); "De Wilhelmus" (The William)
lyrics/music:Michel LENTZ/Jean-Antoine ZINNEN; Nikolaus WELTER/unknown
"Ons Heemecht," adopted 1864, is the national anthem, while "De Wilhelmus," adopted 1919, serves as a royal anthem for use when members of the grand ducal family enter or exit a ceremony in Luxembourg
Information and Influence

🇱🇺 Luxembourg’s identity, media and the projection of influence

Languages
Luxembourgish
Religions·2000
Roman Catholic 87%, other
Ethnic Groups·2000
Luxembourger 63.1%, Portu…
Broadcast Media·2008
Luxembourg has a long tra…
Intl Organisations
ADB

Identity and cultureBack to top ↑

Languages

Luxembourgish (official administrative language and national language (spoken vernacular)), French (official administrative language), German (official administrative language)

Religions

Roman Catholic 87%, other (includes Protestant, Jewish, and Muslim) 13% (2000)

Ethnic groups

Luxembourger 63.1%, Portuguese 13.3%, French 4.5%, Italian 4.3%, German 2.3%, other EU 7.3%, other 5.2% (2000 census)

National symbol(s)

lion

MediaBack to top ↑

Broadcast media

Luxembourg has a long tradition of operating radio and TV services to pan-European audiences and is home to Europe's largest privately owned broadcast media group, the RTL group, which operates 46 TV stations and 29 radio stations in Europe; also home to Europe's largest satellite operator, Societe Europeenne des Satellites (SES); domestically, the RTL group operates TV and radio networks; other domestic private radio and TV operators and French and German stations available; satellite and cable TV services available (2008)

Diplomatic networkBack to top ↑

International organisation participation

ADB (nonregional member), Australia Group, Benelux, BIS, CD, CE, EAPC, EBRD, ECB, EIB, EMU, ESA, EU, FAO, FATF, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NATO, NEA, NSG, OAS (observer), OECD, OIF, OPCW, OSCE, PCA, Schengen Convention, UN, UN Security Council (temporary), UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNRWA, UPU, WCO, WHO, WIPO, WMO, WTO, ZC

Diplomatic representation in the US
chief of mission:Ambassador Jean-Louis WOLZFELD (since 11 September 2012)
chancery:2200 Massachusetts Avenue NW, Washington, DC 20008
telephone:[1] (202) 265-4171 through 72
FAX:[1] (202) 328-8270
consulate(s) general:New York, San Francisco
Diplomatic representation from the US
chief of mission:Ambassador Robert MANDELL (since 25 October 2011)
embassy:22 Boulevard Emmanuel Servais, L-2535 Luxembourg City
mailing address:American Embassy Luxembourg, Unit 1410, APO AE 09126-1410 (official mail); American Embassy Luxembourg, PSC 9, Box 9500, APO AE 09123 (personal mail)
telephone:[352] 46-01-23
FAX:[352] 46-14-01
Financial Strength

🇱🇺 Luxembourg’s fiscal depth, reserves and the capacity to act

Inflation Rate (consumer Prices)·2013
1.8%
Public Debt·2013
22.9%GDP
Taxes and Other Revenues·2013
39.5%GDP
Reserves of Foreign Exchange and Gold·2012
$991M
Debt - External·2012
$2.9T

FiscalBack to top ↑

Budget
revenues:$23.91 billion
expenditures:$24.94 billion (2013 est.)
Taxes and other revenues

39.5% of GDP (2013 est.)

Budget surplus (+) or deficit (-)

-1.7% of GDP (2013 est.)

Public debt

22.9% of GDP (2013 est.)//20.8% of GDP (2012 est.)

data cover general government debt, and includes 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 intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions

Monetary and externalBack to top ↑

Inflation rate (consumer prices)

1.8% (2013 est.)//2.9% (2012 est.)

Reserves of foreign exchange and gold

$991 million (31 December 2012 est.)//$1.014 billion (31 December 2011 est.)

Debt — external

$2.935 trillion (31 December 2012 est.)//$2.084 trillion (31 December 2011)

Exchange rates

euros (EUR) per US dollar -//0.7634 (2013 est.)//0.7752 (2012 est.)//0.755 (2010 est.)//0.7198 (2009 est.)//0.6827 (2008 est.)

Production and Innovation

🇱🇺 Luxembourg’s output, industry and the engine of prosperity

Real GDP (purchasing Power Parity)
—
Real GDP Growth Rate
—
Real GDP per Capita
—
GDP (official Exchange Rate)·2013
$60.5B
Labor Force
208.8K

OutputBack to top ↑

GDP (official exchange rate)

$60.54 billion (2013 est.)

GDP composition, by sector of origin
agriculture:0.3%
industry:13.3%
services:86.4% (2013 est.)
GDP composition, by end use
household consumption:32.3%
government consumption:17.5%
investment in fixed capital:22.2%
investment in inventories:-2.4%
exports of goods and services:170.5%
imports of goods and services:-140.1%; (2013 est.)

Sectors and industryBack to top ↑

Industries

banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism, biotechnology, logistics

Industrial production growth rate

-1% (2013 est.)

LabourBack to top ↑

Labour force

208,800

data exclude foreign workers; in addition to the figure for domestic labor force, about 150,000 workers commute daily from France, Belgium, and Germany (2013 est.)
Unemployment rate

4.9% (2013 est.)//6.1% (2012 est.)

OtherBack to top ↑

Economy - overview

This small, 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, automobile components, and other products. Growth in the financial sector, which now accounts for about 36% of GDP, has more than compensated for the decline in steel. Most banks are foreign-owned and have extensive foreign dealings, but Luxembourg has lost some of its advantages as a favorable tax location because of OECD and EU pressure. The economy depends on foreign and cross-border workers for about 40% of its labor force. Luxembourg, like all EU members, suffered from the global economic crisis that began in late 2008, but unemployment has trended below the EU average. Following strong expansion from 2004 to 2007, Luxembourg's economy contracted 3.6% in 2009, but rebounded in 2010-11 before slowing again in 2012. 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. Turmoil in the world financial markets and lower global demand during 2008-09 prompted the government to inject capital into the banking sector and implement stimulus measures to boost the economy. Government stimulus measures and support for the banking sector, however, led to a 5% government budget deficit in 2009. Nevertheless, the deficit was cut to 1.1% in 2011 and 0.9% in 2012. Even during the financial crisis and recovery, Luxembourg retained the highest current account surplus as a share of GDP in the euro zone, owing largely to their strength in financial services. Public debt remains among the lowest of the region although it has more than doubled since 2007 as percentage of GDP. Luxembourg's economy, while stabile, grew slowly in 2012 due to ongoing weak growth in the euro area. Authorities have strengthened supervision of domestic banks because of their exposure to the activities of foreign banks.

GDP (purchasing power parity)

$42.67 billion (2013 est.)//$42.44 billion (2012 est.)//$42.3 billion (2011 est.)

data are in 2013 US dollars
GDP - real growth rate

0.5% (2013 est.)//0.3% (2012 est.)//1.7% (2011 est.)

GDP - per capita (PPP)

$77,900 (2013 est.)//$79,000 (2012 est.)//$81,400 (2011 est.)

data are in 2013 US dollars
Agriculture - products

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

Labor force - by occupation
agriculture:1.2%
industry:19.4%
services:79.4% (2012 est.)
Distribution of family income - Gini index

26 (2005)

Fiscal year

calendar year

Central bank discount rate

0.75% (31 December 2013)//1.5% (31 December 2010)

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

$84.91 billion (31 December 2013 est.)//$89.87 billion (31 December 2012 est.)

see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Stock of broad money

$235.8 billion (31 December 2013 est.)//$238.2 billion

Stock of domestic credit

$97.73 billion (31 December 2013 est.)//$97.39 billion (31 December 2012 est.)

Market value of publicly traded shares

$70.34 billion (31 December 2012 est.)//$67.63 billion (31 December 2011)//$101.1 billion (31 December 2010 est.)

Stock of direct foreign investment - at home

$NA//$11.21 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad

$NA

Trade and Investment

🇱🇺 Luxembourg’s markets, capital and the terms of global exchange

Exports·2013
$15.8B
Imports·2013
$23.1B
Current Account Balance·2013
$2.7B
Remittances
—
Exchange Rates·2013
euros

External balanceBack to top ↑

Current account balance

$2.7 billion (2013 est.)//$3.428 billion (2012 est.)

ExportsBack to top ↑

Exports

$15.8 billion (2013 est.)//$15.93 billion (2012 est.)

Exports — partners

Germany 21.5%, France 15.5%, Belgium 14.5%, UK 5.8%, Italy 5.6%, Switzerland 4.7% (2012)

Exports — commodities

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

ImportsBack to top ↑

Imports

$23.12 billion (2013 est.)//$23.78 billion (2012 est.)

Imports — partners

Belgium 30.6%, Germany 23.6%, France 10.4%, US 8.3%, China 7.2%, Netherlands 5.1% (2012)

Imports — commodities

minerals, metals, foodstuffs, quality consumer goods

Contents

GINC Indices
Foundations
Capability Domains