Luxembourg Economy 2007

Economy - overview:
This stable, high-income economy - benefiting from its proximity to 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 28% 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 about 60% 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 - GDP per capita ranks second in the world.

GDP (purchasing power parity):
$33.87 billion (2006 est.)

GDP (official exchange rate):
$34.53 billion (2006 est.)

GDP - real growth rate:
6.2% (2006 est.)

GDP - per capita (PPP):
$71,400 (2006 est.)

GDP - composition by sector:
agriculture: 1%
industry: 13%
services: 86% (2005 est.)

Labor force:
203,000 of whom 121,600 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2006 est.)

Labor force - by occupation:
agriculture: 1%
industry: 13%
services: 86% (2004 est.)

Unemployment rate:
4.1% (2006 est.)

Population below poverty line:
NA%

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

Inflation rate (consumer prices):
2.7% (2006 est.)

Investment (gross fixed):
18.3% of GDP (2006 est.)

Budget:
revenues: $18.68 billion
expenditures: $18.65 billion (2006 est.)

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

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

Industrial production growth rate:
4.3% (2006 est.)

Electricity - production:
3.156 billion kWh (2005 est.)

Electricity - consumption:
6.315 billion kWh (2005 est.)

Electricity - exports:
3.131 billion kWh (2005 est.)

Electricity - imports:
6.392 billion kWh (2005 est.)

Oil - production:
0 bbl/day (2004 est.)

Oil - consumption:
62,420 bbl/day (2004 est.)

Oil - exports:
283 bbl/day (2004)

Oil - imports:
61,070 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
1.356 billion cu m (2005 est.)

Natural gas - exports:
0 cu m (2005 est.)

Natural gas - imports:
1.356 billion cu m (2005)

Current account balance:
$4.387 billion (2006 est.)

Exports:
$16.57 billion f.o.b. (2006 est.)

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

Exports - partners:
Germany 19.3%, France 15.5%, Italy 9.5%, UK 9.5%, Belgium 8.8%, Spain 5.3%, Netherlands 4.5% (2006)

Imports:
$20.86 billion c.i.f. (2006 est.)

Imports - commodities:
minerals, metals, foodstuffs, quality consumer goods

Imports - partners:
Belgium 26.3%, Germany 20.1%, China 16.7%, France 8.5%, UK 5.5%, Netherlands 4.2% (2006)

Economic aid - donor:
ODA, $235.6 million (2004)

Reserves of foreign exchange and gold:
$265.1 million (2006 est.)

Debt - external:
$NA

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$51.25 billion (2005)

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

Exchange rates:
euros per US dollar - 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002)