Europe

Luxembourg
Last reviewed: 29 March 2005

Country information

See entire profile

ECONOMY

Basic economic facts

GDP: $23.5 billion (€19.1 billion (2003))
Annual Growth: 1.2% in 2003 (2004 estimate: 3%)
Inflation: 2.1% (Dec 2003)
Major Industries: Banking/financial services, telecommunications, iron, steel and chemicals.

UK Trade & Investment Country Profile: Luxembourg

Luxembourg has a stable high-income economy. As a result of this, there are low unemployment rates, and low inflation. The steel industry dominates the Industrial sector, but diversifying to include products such as rubber and chemicals. Since the 1970's constant growth in the financial sector has made up for the decline in steel and this sector is now the dominant force in the economy. In Luxembourg, the farms are often small and family owned. More than 30% of the labour force are cross border workers, and the economy relies heavily on them.