Economy of Luxembourg

Economy of Luxembourg

Currency	1 Euro (€1) = 100 eurocent = $1,14
Fiscal year	Calendar year
Trade organisations	EU, WTO and OECD
Statistics
GDP	€52,1/$55,7 billion (nominal,2015 est.)
GDP rank	103rd (PPP, 2012 est.)
GDP growth	3.1% (Real, 2015 est.)
GDP per capita	€91,600/$102,000 (nominal, 2015 est.)
GDP by sector	agriculture: 0.4%; industry: 13.6%; services: 86% (2007 est.)
Inflation (CPI)	0.3% (CPI, 2015 est.)
Gini coefficient	26.0 (2005)
Labour force	368,400 of who 154,900 are foreign cross-border workers commuting primarily from France, Belgium, and Germany (2011)
Labour force by occupation	agriculture: 2.2%; industry: 17.2%; services: 80.6% (2007 est.)
Unemployment	6.0% (2012 est.)
Average gross salary	€51,000($66,000), yearly (2011)
Average net salary	€38,000($50,000), yearly (2011)
Main industries	banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism
Ease-of-doing-business rank	59th (2017)
External
Exports	$14.7 billion (2014 est.)
Export goods	machinery and equipment, steel products, chemicals, rubber products, glass
Main export partners	Germany 21.6%  France 15.5%  Belgium 14.5%  United Kingdom 5.8%  Italy 5.6%   Switzerland 4.7% (2012 est.)
Imports	$23.8 billion (2014 est.)
Import goods	Minerals, metals, foodstuffs, quality consumer goods
Main import partners	Belgium 30.9%  Germany 23.4%  France 10.4%  United States 8.2%  China 7.2%  Netherlands 5.1% (2012 est.)
FDI stock	$30.7 billion (2013 est.)
Gross external debt	€11.2 billion (2014)
Public finances
Public debt	18.4% of GDP (2012 est.)
Revenues	€14.2 billion (2014 est.)
Expenses	€14.8 billion (2014 est.)
Economic aid	donor: ODA, $0.24 billion (2004[update])
Credit rating	Standard & Poor's: AAA (Domestic) AAA (Foreign) AAA (T&C Assessment) Outlook: Stable Moody's: Aaa Outlook: Stable Fitch: AAA Outlook: Positive
Foreign reserves	€0.7 billion (October 2015)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

The economy of Luxembourg is largely dependent on the banking, steel, and industrial sectors. Luxembourgers enjoy the second highest per capita gross domestic product in the world (CIA 2007 est.), behind Qatar. Luxembourg is seen as a diversified industrialized nation, contrasting the oil boom in Qatar, the major monetary source of the southwest Asian state.

Although Luxembourg in tourist literature is aptly called the "Green Heart of Europe", its pastoral land coexists with a highly industrialized and export-intensive area. Luxembourg's economy is quite similar to Germany's. Luxembourg enjoys a degree of economic prosperity very rare among industrialized democracies.

In 2009, a budget deficit of 5% resulted from government measures to stimulate the economy, especially the banking sector, as a result of the world economic crisis. This was however reduced to 1.4% in 2010.

In 2013 the GDP was $60.54 billion of which services, including the financial sector, produced 86%. The financial sector comprised 36% of GDP, industry comprised 13.3% and agriculture only 0.3%.

Banking is the largest sector in the Luxembourg economy. The country has specialised in the cross-border fund administration business. As Luxembourg's domestic market is relatively small, the country's financial centre is predominantly international. At the end of March 2009, there were 152 banks in Luxembourg, with over 27,000 employees. Political stability, good communications, easy access to other European centres, skilled multilingual staff, a tradition of banking secrecy and cross-border financial expertise have all contributed to the growth of the financial sector. These factors have contributed to a Corruption Perceptions Index of 8.3 and a DAW Index ranking of 10 in 2012; the latter the highest in Europe. Germany accounts for the largest-single grouping of banks, with Scandinavian, Japanese, and major US banks also heavily represented. Total assets exceeded €929 billion at the end of 2008. More than 9,000 holding companies are established in Luxembourg. The European Investment Bank—the financial institution of the European Union—is also located there.

Concern about Luxembourg's banking secrecy laws, and its reputation as a tax haven, led in April 2009 to it being added to a "grey list" of nations with questionable banking arrangements by the G20, a list from which it was removed in 2009. This concern has led Luxembourg to modify its tax legislation to avoid conflict with the tax authorities of European Union Members. For example, the classic tax exempt 1929 Holding Company was outlawed 31 December 2010, as it was deemed an illegal state aid by the European Commission.