Economy - overview The stable, prosperous economy features moderate growth, low inflation, and low unemployment. Agriculture is based on small family-owned farms. The industrial sector, until recently dominated by steel, has become increasingly more diversified. During the past decades, growth in the financial sector has more than compensated for the decline in steel. Services, especially banking, account for a growing proportion of the economy. Luxembourg participates in an economic union with Belgium on trade and most financial matters, is also closely connected economically to the Netherlands, and, as a member of the EU, enjoys the advantages of the open European market.

GDP purchasing power parity - $13.48 billion (1997 est.)

GDP - real growth rate 3.6% (1997 est.)

GDP - per capita purchasing power parity - $33,700 (1997 est.)

GDP - composition by sector
agriculture: 5%
industry: 21%
services: 74% (1995)

Inflation rate - consumer price index 2.3% (1995)

Labor force
total: 213,100 (one-third of labor force is foreign workers, mostly from Portugal, Italy, France, Belgium, and Germany)
by occupation: trade, restaurants, hotels 20%, mining, quarrying, manufacturing 16%, other market services 18%, community, social, personal services 14%, construction 11%, finance, insurance, real estate, business services 9%, transport, storage, communications 8%, agriculture, hunting, forestry, fishing 1%, electricity, gas, water 1% (1995 est.)

Unemployment rate 3.5% (1997)

Budget
revenues: $5.46 billion
expenditures: $5.44 billion, including capital expenditures of $NA (1997 est.)

Industries banking, iron and steel, food processing, chemicals, metal products, engineering, tires, glass, aluminum

Industrial production growth rate 3.3% (1995 est.)

Electricity - capacity 138,000 kW (1995)

Electricity - production 470 million kWh (1995)

Electricity - consumption per capita 13,518 kWh (1995)

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

Exports
total value: $7.1 billion (f.o.b., 1996)
commodities: finished steel products, chemicals, rubber products, glass, aluminum, other industrial products
partners: Germany 28%, France 18%, Belgium 15%, UK 7%, Netherlands 5%

Imports
total value: $9.4 billion (c.i.f., 1996)
commodities: minerals, metals, foodstuffs, quality consumer goods
partners: Belgium 38%, Germany 25%, France 11%, Netherlands 4%

Debt - external $NA

Economic aid
donor: ODA, $50 million (1993)

Currency 1 Luxembourg franc (LuxF) = 100 centimes; note - centimes no longer in use

Exchange rates Luxembourg francs (LuxF) per US$1 - 37.459 (January 1998), 35.774 (1997), 30.962 (1996), 29.480 (1995), 33.456 (1994), 34.597 (1993); note - the Luxembourg franc is at par with the Belgian franc, which circulates freely in Luxembourg

Fiscal year calendar year

NOTE: The information regarding Luxembourg on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Luxembourg Economy 1998 information contained here. All suggestions for corrections of any errors about Luxembourg Economy 1998 should be addressed to the CIA.