Luxembourg Economy 2001

Economy - overview: The 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. Luxembourg has a custom union with Belgium and the Netherlands, and, as a member of the EU, enjoys the advantages of the open European market. It joined with 10 other EU members to launch the euro on 1 January 1999.

GDP: purchasing power parity - $15.9 billion (2000 est.)

GDP - real growth rate: 5.7% (2000 est.)

GDP - per capita: purchasing power parity - $36,400 (2000 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): 7.8% (2000 est.)

Labor force: 248,000 (of whom 70,200 are foreign cross-border workers primarily from France, Belgium, and Germany) (2000)

Labor force - by occupation: services 83.2%, industry 14.3%, agriculture 2.5% (1998 est.)

Unemployment rate: 2.7% (2000 est.)

Budget:
revenues: $5.6 billion
expenditures: $5.6 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: 7.8% (2000 est.)

Electricity - production: 648 million kWh (1999)

Electricity - production by source:
fossil fuel: 36.88%
hydro: 53.09%
nuclear: 0%
other: 10.03% (1999)

Electricity - consumption: 6.149 billion kWh (1999)

Electricity - exports: 655 million kWh (1999)

Electricity - imports: 6.201 billion kWh (1999)

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

Exports: $7.6 billion (f.o.b., 2000)

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

Exports - partners: EU 75% (Germany 25%, France 21%, Belgium 13%, UK 8%, Italy 6%, Netherlands 5%), US 4% (1999)

Imports: $10 billion (c.i.f., 2000)

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

Imports - partners: EU 81% (Belgium 35%, Germany 26%, France 12%, Netherlands 4%), US 9% (1999)

Debt - external: $NA

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

Currency: Luxembourg franc (LUF); euro (EUR)
note: on 1 January 1999, the EU introduced the euro as a common currency that is now being used by financial institutions in Luxembourg at a fixed rate of 40.3399 Luxembourg francs per euro and will replace the local currency for all transactions in 2002

Currency code: LUF; EUR

Exchange rates: euros per US dollar - 1.0659 (January 2001), 1.0854 (2000), 0.9386 (1999); Luxembourg francs per US dollar - 34.77 (January 1999), 36.299 (1998), 35.774 (1997), 30.962 (1996); note - the Luxembourg franc is at par with the Belgian franc, which circulates freely in Luxembourg

Fiscal year: calendar year

NOTE: The information regarding Luxembourg on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Luxembourg Economy 2001 information contained here. All suggestions for corrections of any errors about Luxembourg Economy 2001 should be addressed to the CIA.