Economy of Luxembourg

Economy of Luxembourg

Currency	Euro (EUR, €)
Fiscal year	Calendar year
Trade organisations	EU, WTO and OECD
Country group	Advanced economy[1] High-income economy[2] Welfare state[3][4]
Statistics
Population	672,050 (1 January 2024)[5]
GDP	$91.210 billion (nominal, 2024f)[6] $101.876 billion (PPP, 2024f)[6]
GDP rank	73rd (nominal, 2024) 100th (PPP, 2024)
GDP growth	-1.1% (2023)[7] 1.3% (2024f)[7] 2.7% (2025f)[7]
GDP per capita	$135,321 (nominal, 2024f)[6] $151,146 (PPP, 2024f)[6]
GDP per capita rank	1st (nominal, 2024) 1st (PPP, 2024)
GDP by sector	agriculture: 0.2% industry: 10.5% services: 80.6% (2023 est.)[8]
Inflation (CPI)	2.5% (2024f)[9]
Population below poverty line	21.4% at risk of poverty or social exclusion (AROPE, 2023)[10]
Gini coefficient	30.6 medium (2023, Eurostat)[11]
Human Development Index	0.927 very high (2022)[12] (20th) 0.839 very high IHDI (22nd) (2022)[12]
Corruption Perceptions Index	78 out of 100 points (2023)[13] (10th)
Labour force	335,000 (2023)[14] 74.1% employment rate (2023)[15]
Labour force by occupation	agriculture: 1.1% industry: 20% services: 78.9% (2017 est.)[8]
Unemployment	5.9% (August 2024)[16] 20.4% youth unemployment (August 2024)[17]
Average gross salary	$7,000 / $8,000 monthly (2022)
Average net salary	€6,000 / $7,000 monthly (2022)
Main industries	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
External
Exports	$100 billion (2022 est.)[8]
Export goods	machinery and equipment, steel products, chemicals, rubber products, glass
Main export partners	Germany 25.6%  Belgium 17.6%  France 14%  Netherlands 5.1%  Italy 4.1%  United Kingdom 4.1% (2017)[8]
Imports	$50 billion (2022 est.)[8]
Import goods	commercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods
Main import partners	Belgium 32%  Germany 24.9%  France 11.1%  United States 5.7%  Netherlands 5.1%  China 4.7% (2017)[8]
FDI stock	$50 billion (31 December 2021 est.)[8] Abroad: NA[8]
Current account	$3.112 billion (2017 est.)
Gross external debt	$5 trillion (31 March 2022 est.)[8]
Public finances
Government debt	15% of GDP (2022)[18] €20 billion (2022)[18]
Budget balance	€5 billion surplus (2022)[18] 5% of GDP (2022)[18]
Revenues	30% of GDP (2019)[18]
Expenses	25% of GDP (2019)[18]
Economic aid	€65 million from European Structural and Investment Funds (2007–2013)[19] €140 million from European Structural and Investment Funds (2014–2020)[20]
Credit rating	Standard & Poor's:[21] AAA (Domestic) AAA (Foreign) AAA (T&C Assessment) Outlook: Stable[22] Moody's:[22] Aaa Outlook: Stable Fitch:[22] AAA Outlook: Positive Scope:[23] AAA Outlook: Stable
Foreign reserves	$1.5 billion (31 December 2021 est.)[8]
All values, unless otherwise stated, are in US dollars.

The economy of Luxembourg is largely dependent on the banking, steel, and industrial sectors. Citizens of Luxembourg enjoy the highest per capita gross domestic product in the world, according to an IMF estimate in 2022.^[24] Among OECD nations, Luxembourg has a highly efficient and strong social security system; social welfare expenditure stood at roughly 21.9% of GDP.^[3][4][25]

Prior to the mid-19th century, Luxembourg was primarily rural and mostly isolated from commerce with neighboring economies.^[26] In the late 19th century, Luxembourg's dominant sector was steel industry.^[26] Over time, the main economic sector became finance.^[27] Due to its reputation for secrecy, it has become an attractive location for individuals and businesses to hold assets for tax avoidance and tax evasion purposes.^[28][29]