Economy

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—$13.481 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