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Luxembourg Economy 2019

SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES











Luxembourg Economy 2019
SOURCE: 2019 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 08, 2019

Economy - overview:
This small, stable, high-income economy has historically featured solid growth, low inflation, and low unemployment. Luxembourg, the only Grand Duchy in the world, is a landlocked country in northwestern Europe surrounded by Belgium, France, and Germany. Despite its small landmass and small population, Luxembourg is the fifth-wealthiest country in the world when measured on a gross domestic product (PPP) per capita basis. 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, with a 2017 surplus of 0.5% of GDP, and the lowest public debt level in the region.

Since 2002, Luxembourg’s government has proactively implemented policies and programs to support economic diversification and to attract foreign direct investment. The government focused on key innovative industries that showed promise for supporting economic growth: logistics, information and communications technology (ICT); health technologies, including biotechnology and biomedical research; clean energy technologies, and more recently, space technology and financial services technologies. The economy has evolved and flourished, posting strong GDP growth of 3.4% in 2017, far outpacing the European average of 1.8%.

Luxembourg remains a financial powerhouse – the financial sector accounts for more than 35% of GDP - because of the exponential growth of the investment fund sector through the launch and development of cross-border funds (UCITS) in the 1990s. Luxembourg is the world’s second-largest investment fund asset domicile, after the US, with $4 trillion of assets in custody in financial institutions.

Luxembourg has lost some of its advantage as a favorable tax location because of OECD and EU pressure, as well as the "LuxLeaks" scandal, which revealed advantageous tax treatments offered to foreign corporations. In 2015, the government’s compliance with EU requirements to implement automatic exchange of tax information on savings accounts - thus ending banking secrecy - has constricted banking activity. Likewise, changes to the way EU members collect taxes from e-commerce has cut Luxembourg’s sales tax revenues, requiring the government to raise additional levies and to reduce some direct social benefits as part of the tax reform package of 2017. The tax reform package also included reductions in the corporate tax rate and increases in deductions for families, both intended to increase purchasing power and increase competitiveness.

GDP (purchasing power parity):
$62.11 billion (2017 est.)
$60.71 billion (2016 est.)
$58.9 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 105
[see also: GDP country ranks ]

GDP (official exchange rate):
$62.53 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
2.3% (2017 est.)
3.1% (2016 est.)
2.9% (2015 est.)
country comparison to the world: 142
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$105,100 (2017 est.)
$105,400 (2016 est.)
$104,600 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 5
[see also: GDP - per capita country ranks ]

Gross national saving:
22.3% of GDP (2017 est.)
23% of GDP (2016 est.)
23.2% of GDP (2015 est.)
country comparison to the world: 82
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 30.2% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 16.5% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 16.2% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 1.1% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 230% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -194% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 0.3% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 12.8% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 86.9% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

Industries:
banking 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 rate:
1.9% (2017 est.)
country comparison to the world: 134
[see also: Industrial production growth rate country ranks ]

Labor force:
282,800 (2017 est.)
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
country comparison to the world: 165
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 1.1%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 20%
[see also: Labor force - by occupation - industry country ranks ]
services: 78.9% (2013 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
5.8% (2017 est.)
6.3% (2016 est.)
country comparison to the world: 89
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.5%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 23.8% (2000)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
30.4 (2013 est.)
26 (2005 est.)
country comparison to the world: 132
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 27.75 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 26.8 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
44.4% (of GDP) (2017 est.)
country comparison to the world: 24
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
1.5% (of GDP) (2017 est.)
country comparison to the world: 23
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
23% of GDP (2017 est.)
20.8% of GDP (2016 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 intragovernmental debt; intragovernmental 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
country comparison to the world: 183
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
2.1% (2017 est.)
0% (2016 est.)
country comparison to the world: 109
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0% (31 December 2017)
0% (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
country comparison to the world: 157
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
1.9% (31 December 2017 est.)
1.98% (31 December 2016 est.)
country comparison to the world: 186
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$275.6 billion (31 December 2017 est.)
$229.2 billion (31 December 2016 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 circulating within their own borders
country comparison to the world: 18
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$275.6 billion (31 December 2017 est.)
$229.2 billion (31 December 2016 est.)
country comparison to the world: 18
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$128.5 billion (31 December 2017 est.)
$109.9 billion (31 December 2016 est.)
country comparison to the world: 51
[see also: Stock of domestic credit country ranks ]

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.)
country comparison to the world: 52
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$3.112 billion (2017 est.)
$2.988 billion (2016 est.)
country comparison to the world: 34
[see also: Current account balance country ranks ]

Exports:
$15.99 billion (2017 est.)
$16.37 billion (2016 est.)
country comparison to the world: 74
[see also: Exports country ranks ]

Exports - partners:
Germany 25.6%, Belgium 17.6%, France 14%, Netherlands 5.1%, Italy 4.1%, UK 4.1% (2017)

Exports - commodities:
machinery and equipment, steel products, chemicals, rubber products, glass

Imports:
$20.66 billion (2017 est.)
$20.41 billion (2016 est.)
country comparison to the world: 76
[see also: Imports country ranks ]

Imports - commodities:
commercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods

Imports - partners:
Belgium 32%, Germany 24.9%, France 11.1%, US 5.7%, Netherlands 4.9% (2017)

Reserves of foreign exchange and gold:
$878 million (31 December 2017 est.)
$974 million (31 December 2016 est.)
country comparison to the world: 137
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$3.781 trillion (31 March 2016 est.)
$3.806 trillion (31 March 2015 est.)
country comparison to the world: 6
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$11.21 billion (31 December 2008 est.)
country comparison to the world: 95
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
NA
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
euros (EUR) per US dollar -
0.885 (2017 est.)
0.903 (2016 est.)
0.9214 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)


NOTE: 1) The information regarding Luxembourg on this page is re-published from the 2019 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Luxembourg Economy 2019 information contained here. All suggestions for corrections of any errors about Luxembourg Economy 2019 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) They assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order






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