Economy - overview This stable, high-income economy 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 has more than compensated for the decline in steel. Services, especially banking, account for a substantial proportion of the economy. Agriculture is based on small family-owned farms. The economy depends on foreign and trans-border workers for 30% of its labor force. Although Luxembourg, like all EU members, has suffered from the global economic slump, the country has maintained a fairly robust growth rate. On 1 January 2002, Luxembourg - together with 11 of its EU partners - began to replace its circulating national currency with the euro.

GDP purchasing power parity - $19.2 billion (2001 est.)

GDP - real growth rate 4% (2001 est.)

GDP - per capita purchasing power parity - $43,400 (2001 est.)

GDP - composition by sector
agriculture: 1%
industry: 30%
services: 69% (2000 est.)

Population below poverty line NA%

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

Inflation rate (consumer prices) 2.4% (2001 est.)

Labor force 262,300 (of whom 87,400 are foreign cross-border workers primarily from France, Belgium, and Germany) (2000)

Labor force - by occupation services 90.1%, industry 8%, agriculture 1.9% (1999 est.)

Unemployment rate 2.4% (2001 est.)

Budget
revenues: $4.44 billion
expenditures: $4.44 billion, including capital expenditures of $NA (2000 est.)

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

Industrial production growth rate 1.9% (2001 est.)

Electricity - production 467.7 million kWh (2000)

Electricity - production by source
fossil fuel: 57.52%
hydro: 25.66%
other: 16.82% (2000)
nuclear: 0%

Electricity - consumption 6.158 billion kWh (2000)

Electricity - exports 735 million kWh (2000)

Electricity - imports 6.458 billion kWh (2000)

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

Exports $7.85 billion (f.o.b., 2000)

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

Exports - partners EU 85% (Germany 24%, France 21%, Belgium 13%), US 4% (2000)

Imports $10.25 billion (c.i.f., 2000)

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

Imports - partners EU 88% (Belgium 37%, Germany 25%, France 13%), US 4% (2000)

Debt - external $NA

Economic aid - donor ODA, $160 million (1999)

Currency euro (EUR); Luxembourg franc (LUF)
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

Currency code EUR; LUF

Exchange rates euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.0854 (2000), 0.9386 (1999); Luxembourg francs per US dollar - 34.77 (January 1999), 36.299 (1998), 35.774 (1997)

Fiscal year calendar year

NOTE: The information regarding Luxembourg on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Luxembourg Economy 2002 information contained here. All suggestions for corrections of any errors about Luxembourg Economy 2002 should be addressed to the CIA.