Luxembourg Economy 2008

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, suffered from the global economic slump in the early part of this decade, the country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks first in the world. After two years of strong economic growth in 2006-07, Luxembourg's economy probably will slow in 2008 as a result of turmoil in the world financial markets, but growth will remain above the European average.

GDP (purchasing power parity):
$38.79 billion (2007 est.)

GDP (official exchange rate):
$37.12 billion (2007 est.)

GDP - real growth rate:
5% (2007 est.)

GDP - per capita (PPP):
$80,800 (2007 est.)

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

Labor force:
205,000 of whom 121,600 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2007 est.)

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

Unemployment rate:
4.4% (2007 est.)

Population below poverty line:
NA%

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

Distribution of family income - Gini index:
26 (2005)

Inflation rate (consumer prices):
2.1% (2007 est.)

Investment (gross fixed):
17.5% of GDP (2007 est.)

Budget:
revenues: $14.29 billion
expenditures: $13.92 billion (2007 est.)

Public debt:
2.6% of GDP (2007 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 (2005 est.)

Oil - consumption:
64,020 bbl/day (2005 est.)

Oil - exports:
283 bbl/day (2004)

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

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

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)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
$11.3 billion (2007 est.)

Exports:
$19.58 billion f.o.b. (2007 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:
$26.85 billion c.i.f. (2007 est.)

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:
$79.4 billion (2006)

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 - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)