Exporting

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Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839 but gained a larger measure of autonomy. In 1867, Luxembourg attained full independence under the condition that it promise perpetual neutrality. Overrun by Germany in both world wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957, Luxembourg became one of the six founding countries of the EEC (later the EU), and in 1999 it joined the euro currency zone.

Location

Western Europe, between France and Germany

Natural Resources

iron ore (no longer exploited), arable land

Population - distribution

most people live in the south, on or near the border with France

497538
Luxembourgish (official administrative and judicial language and national language (spoken vernacular)) 88.8%, French (official administrative, judicial, and legislative language) 4.2%, Portuguese 2.3%, German (official administrative and judicial language) 1.1%, other 3.5% (2011 est.)
LUXEMBOURG (capital) 107,000 (2014)
Conventional long form
Grand Duchy of Luxembourg
Conventional short form
Luxembourg
Local long form
Grand Duchee de Luxembourg
Local short form
Luxembourg
constitutional monarchy
Name
Luxembourg
Geographic coordinates
49 36 N, 6 07 E
Time difference
UTC+1 (6 hours ahead of Washington, DC, during Standard Time)
Daylight saving time
+1hr, begins last Sunday in March; ends last Sunday in October
accepts compulsory ICJ jurisdiction; accepts ICCt jurisdiction
This small, stable, high-income economy has historically featured solid growth, low inflation, and low unemployment. Luxembourg, the only Grand Duchy in the world, is a landlocked country in northwestern Europe surrounded by Belgium, France, and Germany. Despite its small landmass and small population, Luxembourg is the second-wealthiest country in the world when measured on a gross domestic product (PPP) per capita basis. Luxembourg has one of the highest current account surpluses as a share of GDP in the euro zone, and it maintains a healthy budgetary position and the lowest public debt level in the region.
Inflation
0.299%
Total tax rate (% of commercial profits)
20.8%
Real Interest Rate
7.423%
Manufacturing, value added (% of GDP)
5.476%
Current Account Balance
US$ 2,787,788,788
Labor Force, Total
287,240
Employment in Agriculture
0.95%
Employment in Industry
11.43%
Employment in Services
78.89%
Unemployment Rate
5.94%
Imports of goods and services
US$ 114,822,197,491
Exports of goods and services
US$ 136,643,473,446
Total Merchandise Trade
62.51%
FDI, net inflows
US$ 24,595,772,903
Commercial Service Exports
US$ 94,040,419,936
grapes, barley, oats, potatoes, wheat, fruits; dairy and livestock products
banking and financial services, construction, real estate services, iron, metals, and steel, information technology, telecommunications, cargo transportation and logistics, chemicals, engineering, tires, glass, aluminum, tourism, biotechnology
Commodities
machinery and equipment, steel products, chemicals, rubber products, glass
Partners
Germany 22.1%, Belgium 16.7%, France 16.6%, UK 4.7%, Italy 4.6%, Netherlands 4% (2015)
Commodities
commercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods
Partners
Belgium 27.6%, Germany 22.9%, China 11.7%, France 9.5%, US 8.4%, Netherlands 4.2%, Mexico 4.1% (2015)
Country Risk Rating
A1
The political and economic situation is very good. A quality business environment has a positive influence on corporate payment behavior. Corporate default probability is very low on average.
Business Climate Rating
A2
The business environment is good. When available, corporate financial information is reliable. Debt collection is reasonably efficient. Institutions generally perform efficiently. Intercompany transactions usually run smoothly in the relatively stable environment rated A2.
  • Fiscally stable
  • Skilled international workforce
  • Quality infrastructure, attractive legal and fiscal framework
  • Well-performing international financial center
  • High standard of living
  • Heavy dependence on large financial sector
  • Economy vulnerable to Eurozone economic situation
  • Future fiscal impact of an aging population

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