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Luxembourg

Luxembourg Economy Stats

Overview:

This small, stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - has historically featured 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, which now accounts for about 28% of GDP, has more than compensated for the decline in steel. Most banks are foreign owned and have extensive foreign dealings, but Luxembourg has lost some of its advantages as a tax haven because of OECD and EU pressure. The economy depends on foreign and cross-border workers for about 60% of its labor force. Luxembourg, like all EU members, suffered from the global economic crisis that began in late 2008, but unemployment has trended below the EU average. Following strong expansion from 2004 to 2007, Luxembourg's economy contracted and 3.4% in 2009, but rebounded 2.6% in 2010. The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks third in the world, after Liechtenstein and Qatar, and is the highest in the EU. Turmoil in the world financial markets and lower global demand during 2008-09 prompted the government to inject capital into the banking sector and implement stimulus measures to boost the economy. Government stimulus measures and support for the banking sector, however, led to a 5% government budget deficit in 2009, however, the deficit was cut below 3% in 2010.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Debt > Government debt > Public debt, share of GDP: Public debt as % of GDP (CIA).

    No date was available from the Wikipedia article, so we used the date of retrieval.

  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Composition, by sector of origin > Services: This entry is derived from Economy > GDP > Composition, by sector of origin, which shows where production takes place in an economy. The distribution gives the percentage contribution of agriculture, industry, and services to total GDP, and will total 100 percent of GDP if the data are complete. Agriculture includes farming, fishing, and forestry. Industry includes mining, manufacturing, energy production, and construction. Services cover government activities, communications, transportation, finance, and all other private economic activities that do not produce material goods.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Figures expressed per capita for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $24.07 billion 2013 65th out of 223
Budget surplus > + or deficit > - -0.8% of GDP 2012 50th out of 182
Debt > Government debt > Public debt, share of GDP 18.4 CIA 2014 130th out of 153
Exports $15.93 billion 2012 75th out of 189
GDP $57.12 billion 2012 67th out of 177
GDP > Composition by sector > Industry 13.6% 2012 192nd out of 217
GDP > Composition, by sector of origin > Services 86.1% 2012 6th out of 189
GDP > Per capita $81,278.63 per capita 2010 1st out of 118
GDP > Per capita > PPP $78,000.00 2012 2nd out of 188
GDP > Purchasing power parity per capita $80,500.56 2010 1st out of 181
GDP per capita $107,475.95 2012 1st out of 177
Gross National Income $17.57 billion 2001 61st out of 158
Inflation rate > Consumer prices 2.7% 2012 133th out of 199
Public debt 20.8% of GDP 2012 127th out of 149
Unemployment rate 6.1% 2012 71st out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; Wikipedia: List of countries by public debt (List) (Public debt , The World Factbook , United States Central Intelligence Agency , accessed on March 21, 2013.); World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.

Citation

"Luxembourg Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Luxembourg/Economy

NationMaster

Luxembourg Economy Profiles (Subcategories)

Aid 6 Innovation 36
Balance of payments 28 Intellectual property 3
Budget 15 Interest payments 3
Changes in net 4 International tourism 14
Commercial service 4 Labor force 3
Commercial service imports 4 Market capitalization of listed companies 4
Companies 28 Merchandise 4
Consumption 10 Merchandise imports 4
Currency 14 Micro 4
Current account balance 5 National accounts 102
Current transfers 4 Natural gas 8
Debt 37 Net capital account 4
Economic aid 3 Net current transfers 4
Economic growth 7 Net errors and omissions 4
Economic structure 4 Net income 4
Electricity 8 Net income from abroad 6
Exports 3 Net incurrence of liabilities 3
External balance on goods and services 7 Net trade in goods 4
Final 15 Net trade in goods and services 4
Financial sector 23 Oil 10
Foreign direct investment 14 Portfolio investment 4
GDP 42 Poverty 3
GDP growth 4 Poverty and inequality 4
GDP per capita 4 Productivity 3
GNI 12 Public expenditure 4
Goods 4 Purchasing power parity 11
Goods imports 4 Reserves 6
Government 14 Royalty and license fees 8
Government debt 8 Savings 44
Government deficits and debt 4 Service 4
Government spending 5 Service imports 4
Gross capital formation 5 Services 10
Gross domestic savings 5 Spending 73
Gross fixed capital formation 10 Stock of direct foreign investment 3
Gross national expenditure 6 Stocks traded 5
Gross value added at factor cost 9 Tax 65
High-technology 4 Taxes 3
Household final 18 Total 9
Income 24 Tourism 21
Income distribution 4 Tourism expenditures 5
Income payments 4 Tourism receipts 5
Income receipts 4 Tourist arrivals by region of origin 4
Inequality 13 Trade 1502
Inflation 10 Welfare 5
  • Luxembourg ranked first for GDP per capita amongst European Union in 2012.
  • Luxembourg ranked first for GDP > composition, by end use > exports of goods and services amongst Christian countries in 2013.
  • Luxembourg ranked first for GDP > per capita > PPP amongst High income OECD countries in 2012.
  • Luxembourg has had the highest GDP per capita > PPP > current international $ since 1988.
  • Luxembourg ranked first for human development index amongst Catholic countries in 2006.
  • Luxembourg has had the highest GDP per capita > constant 2000 US$ since 1991.
  • Luxembourg ranked first for debt > external amongst Landlocked countries in 2012.
  • Luxembourg has had the highest income receipts > boP > current US$ > per $ GDP since 1966.
  • Luxembourg has had the highest GDP > PPP > constant 2000 international $ per capita since 1988.
  • Luxembourg ranked first for GDP > composition by sector > services amongst Cold countries in 2007.

0

No, don't "donate"! Better yet, if you want to see 3rd world countries create economic growth, they need more than money sent their way. They need stable gov't and adequate infrastructure. They need to find ways to play the global economic game (a place must find their economic niche), to attract investors. That will help a place become productive from the inside out. If you need references of countries that have had rapid economic development (along with rising quality of life standards for their population), look at South Korea, Singapore, China, Japan, and so forth.

Clearly, Luxembourg has found its niche! :-) It's a magnet for foreign owned banks. Impressive stat's.

Posted on 14 Jan 2010

LuxLuver

LuxLuver

0

I really don't get some people, last comment says give to the poor, better still, don't, and make them become more productive and earn their keep. All we need these days is more overhead.You don't stop poverty by throwing money at them, you teach them good economics and self sufficiency.

Posted on 19 Oct 2009

Ron Ruys

Ron Ruys