Luxembourg

Quick Facts

🇱🇺
Capital:
Luxembourg
Official Language(s):
German, French, Luxembourgish
Currency:
Euro (€)
Population:
632,275

Overview

Luxembourg, officially named the Grand Duchy of Luxembourg, is a landlocked country in Western Europe. It is bordered by Belgium to the west and north, Germany to the east, and France on the south. Its capital and most populous city, Luxembourg City, is one of the four institutional seats of the European Union and hosts several EU institutions, notably the Court of Justice of the European Union, the highest judicial authority in the EU.

Institutional Framework

The strength of a country's institutions directly impacts its economic development and stability. Strong institutions reduce uncertainty, protect property rights, and enable efficient markets through:
  • Rule of law and contract enforcement
  • Control of corruption
  • Government effectiveness and regulatory quality

* Indicators normalized to 0-100 scale

Economic Structure

The composition of an economy reveals its strengths, vulnerabilities, and potential for growth. Understanding the balance between sectors (agriculture, industry, services) and their sophistication helps assess economic resilience and development opportunities.

Economic Health & Trade

Economic Scale & Power

An economy with $85,584,105,993.875B(2021) GDP, showing strong growth at 7.2%(2021). Advanced economy with high living standards.

GDP Growth
7.2%(2021)
GDP PPP
$86,651,410,643.292

Economic Structure

Economic structure shows 80.1%(2021) in services, 10.7%(2021) in industry, and 0.2%(2021) in agriculture. Service-oriented advanced economy.

Economic Health & Trade

Economic health indicators show 5.6%(2021) unemployment and 2.5%(2021) inflation. Trade profile with 213.2%(2021) exports and 179.9%(2021) imports as % of GDP.

Unemployment
5.6%(2021)
Inflation
2.5%(2021)
Exports/GDP
213.2%(2021)
Imports/GDP
179.9%(2021)

Innovation & Competitiveness

Innovation capacity determines a country's ability to compete in the global knowledge economy. Key indicators like R&D investment, patent applications, and high-tech exports reveal the potential for sustainable economic growth and value creation.

High-Tech Exports

6.1

% of manufactured exports

ICT Exports

1.7

% of total goods exports

Digital Adoption

98.7

% of population using internet

Mobile Connectivity

137.1

Subscriptions per 100 people

Manufacturing Value

4.7

% of GDP

International Position

A country's integration into global markets affects its economic opportunities and risks. Trade relationships, financial flows, and geographic advantages or constraints shape its development trajectory and resilience to external shocks.

Financial & Trade Geography

Trade Profile

Trade represents 393.14%(2021) of GDP, with a trade balance of 33.30%(2021).

FDI Inflows
60.96%(2021)
FDI Outflows
60.96%(2021)

Financial Security

External Debt

N/A

Foreign Reserves

$2.92B(2021)(0.1 months of imports)

Supply Chain & Technology

Technology Trade

ICT Imports
3.71%(2021)
High-Tech Exports
6.08%(2021)

Economic Structure

Manufacturing
4.69%(2021)
Services
80.12%(2021)

Trade Agreements & Dependencies

Trade Agreements

No major trade agreements

Critical Dependencies

    Growth Trajectory

    Understanding growth patterns helps predict future economic performance and development challenges. Key factors include productivity trends, investment levels, and structural transformation progress, which together determine long-term prosperity potential.

    Growth Potential Indicators

    Human Capital

    Education and workforce development

    37.9/100

    Trade Position

    International trade and competitiveness

    62.4/100

    Economic Structure

    Sectoral balance and sophistication

    36.7/100

    Demographics & Human Capital

    Demographics are fundamental to understanding a country's economic potential and challenges. The population structure influences everything from labor force availability to social security systems and public spending priorities.

    Demographics

    Population Overview

    Total population of 640,064(2021) with 1.5%(2021) annual growth. Median age is N/A with fertility rate at 1.38 births/woman(2021).

    Life Expectancy
    82.598 years(2021)
    Birth Rate
    10.5 per 1,000(2021)

    Age Structure

    Working-age population (69.3%(2021)) with youth at 15.9%(2021) and elderly at 14.7%(2021). Total dependency ratio: 44.2%(2021).

    Young Dependency
    23.0%(2021)
    Old Dependency
    21.2%(2021)

    Gender & Migration

    Population is 49.7%(2021) female and 50.3%(2021) male, with sex ratio of 1.051 males/female(2021) at birth. Net migration: 8,724(2021).

    Male Mortality
    65.229/1,000(2021)
    Female Mortality
    37.543/1,000(2021)

    Development Indicators

    Urban population growing at 1.8%(2021) annually, with 8.3%(2021) in rural areas. Literacy rate: N/A.

    Urbanization
    91.7%(2021)
    Infant Mortality
    2.2 per 1,000(2021)

    Population Structure

    The population pyramid visualizes the age and gender distribution, revealing crucial insights about economic sustainability. A balanced pyramid with a strong working-age population (typically ages 15-64) indicates greater economic potential, as this group supports both the younger and older generations through:
    • Labor force participation and productivity
    • Tax contributions to support social services
    • Innovation and economic growth

    An aging population (top-heavy pyramid) or youth bulge (bottom-heavy) can create demographic pressures on social systems and economic stability.

    Source: World Bank Development Indicators

    Security Context

    Security considerations fundamentally affect economic development and investment attractiveness. Both geographic factors and military capabilities influence a country's stability and its ability to protect economic interests and maintain sustainable growth.

    Geographic & Resource Security

    Food & Agriculture

    Arable land comprises 24.3%(2021) of territory, with 51.6%(2021) total agricultural land. Cereal yield: 5,593.3 kg/hectare(2021).

    Food Production Index
    112.69(2021)
    Cereal Production
    147,160 MT(2021)

    Energy Security

    Net energy imports at N/A of consumption. Renewable energy makes up 100.0%(2021) of total. Electricity access: N/A.

    Resource Rents
    N/A

    Water Resources

    Fresh water resources of 934 m³/capita(2021) per person. Annual precipitation: 34.454 mm(2021).

    Forest Area
    0.5%(2021)

    Environmental Vulnerability

    1562.3%(2021) of population affected by climate disasters. Forest coverage at 0.5%(2021) providing natural buffer.

    Annual Rainfall
    34.454 mm(2021)

    Military & Security

    Military Capabilities

    Military expenditure at N/A of GDP. Armed forces personnel: N/A ( N/A of labor force).

    Arms Exports
    6,011 USD(2021)
    Arms Imports
    N/A

    Strategic Status

    Military Alliances

    No major military alliances

    Nuclear Status

    Non-Nuclear State

    Security Environment

    Refugee population: 17,024(2021)Internally displaced: 17,701(2021)

    Strategic Geography

    Strategic Features

    • Landlocked country
    • Borders 3 countries