Editing Economy of Luxembourg

{{Short description|none}}
{{Use dmy dates|date=August 2020}}
{{Infobox economy
| country = Luxembourg
| image = Luxembourg_City_Night_Wikimedia_Commons.jpg
| image_size = 310px
| currency = [[Euro]] (EUR, €)
| year = Calendar year
| organs = [[European Union|EU]], [[WTO]] and [[OECD]]
| group = {{plainlist|
*[[Developed country|Advanced economy]]<ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/groups-and-aggregates |title=World Economic Outlook Database Groups and Aggregates Information |publisher=[[International Monetary Fund]] |website=IMF.org}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>
*[[Welfare state]]<ref name="Kenworthy"/><ref name="Bradley et al."/> }}
| population = {{increase}} 672,050 (1 January 2024)<ref>{{cite web|url=https://statistiques.public.lu/en/actualites/2024/stn16-population-2024.html|title=Reduced population growth in 2023|website=statistiques.public.lu |access-date=10 September 2024}}</ref>
| gdp = {{plainlist|
* {{increase}} $96.993 billion (nominal, {{abbr|2025f|2024 forecast}})<ref name="IMFWEOLU">{{cite web|url=https://www.imf.org/en/Publications/WEO/weo-database/2024/October/weo-report?c=137,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|title=World Economic Outlook database: October 2024|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
* {{increase}} $106.505 billion ([[Purchasing power parity|PPP]], {{abbr|2025f|2024 forecast}})<ref name="IMFWEOLU"/>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|74th (nominal, 2024)]]
*[[List of countries by GDP (PPP)|101st (PPP, 2024)]]}}
| growth = {{plainlist|
* {{decrease}} -1.1% (2023)<ref name="IMFWEOLU"/>
* {{increase}} 1.3% {{abbr|(2024f)|2024 forecast}}<ref name="IMFWEOLU"/>
* {{increase}} 2.7% {{abbr|(2025f)|2025 forecast}}<ref name="IMFWEOLU"/>
* {{increase}} 2.5% {{abbr|(2026f)|2026 forecast}}<ref name="IMFWEOLU"/>
}}
| per capita = {{plainlist|
* {{increase}} $141,080 (nominal, {{abbr|2025f|2024 forecast}})<ref name="IMFWEOLU"/>
* {{increase}} $154,915 (PPP, {{abbr|2025f|2024 forecast}})<ref name="IMFWEOLU"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|1st (nominal, 2025)]]
*[[List of countries by GDP (PPP) per capita|1st (PPP, 2024)]]}}
| cpi = {{increase}} 78 out of 100 points (2023)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |date=30 January 2024 |title=Corruption Perceptions Index |website=[[Transparency International]] |access-date=15 July 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130062042/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|10th]])
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 0.2%
*[[Secondary sector of the economy|industry]]: 10.5%
*[[Tertiary sector of the economy|services]]: 80.6%
*(2023 {{abbr|est.|estimate}})<ref name="CIAWFLU">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/luxembourg/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=29 October 2024}}</ref>}}
| inflation = 2.6% ({{abbr|2025f|2025 forecast}})<ref name="IMFWEOLU"/>
| poverty = {{increaseNegative}} 21.4% at risk of poverty or social exclusion (AROPE, 2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/ilc_pecs01__custom_12841378/default/table?lang=en |title=Persons at risk of poverty or social exclusion |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=11 September 2024}}</ref>
| hdi = {{plainlist|
* {{steady}} 0.927 {{color|darkgreen|very high}} (2022)<ref name="hdi">{{cite web |url=https://hdr.undp.org/data-center/specific-country-data#/countries/LUX |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 September 2024}}</ref> ([[List of countries by Human Development Index|20th]])
* {{decrease}} 0.839 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI (22nd)]] (2022)<ref name="hdi"/>}}
| gini = {{increaseNegative}} 30.6 {{color|darkorange|medium}} (2023, [[Eurostat]])<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/ilc_di12/default/table?lang=en&category=livcon.ilc.ilc_ie.ilc_iei |title=Gini coefficient of equivalised disposable income by age |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=11 September 2024}}</ref>
| labor = {{plainlist|
* {{increase}} 335,000 (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/lfsi_emp_a__custom_12842435/default/table?lang=en |title=Employment and activity by sex and age - annual data |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=11 September 2024}}</ref>
* {{increase}} 74.1% employment rate (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/lfsi_emp_a__custom_12842460/default/table?lang=en |title=Employment and activity by sex and age - annual data |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=11 September 2024}}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 1.1%
*[[Secondary sector of the economy|industry]]: 20%
*[[Tertiary sector of the economy|services]]: 78.9% 
*(2017 {{abbr|est.|estimate}})<ref name="CIAWFLU"/>}}
| unemployment = {{plainlist|
* {{increaseNegative}} 5.9% (August 2024)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/UNE_RT_M__custom_118016/bookmark/table?lang=en&bookmarkId=efcf7c9f-c4d7-4bc2-8c74-962ead60acfc |title=Unemployment by sex and age - monthly data |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat|access-date=7 October 2024}}</ref>
* {{increaseNegative}} 20.4% youth unemployment (August 2024)<ref>{{cite web |title=Unemployment by sex and age - monthly data |url=https://ec.europa.eu/eurostat/databrowser/view/UNE_RT_M__custom_12842131/default/table?lang=en |website=ec.europa.eu/eurostat |publisher=[[Eurostat]] |access-date=7 October 2024}}</ref>}}
| average gross salary = [[List of European countries by average wage|€6,191 / $7,006]] monthly (2024)<ref>[https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/04/taxing-wages-2025_20d1a01d/b3a95829-en.pdf#page176 Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | READ online.]</ref><ref>[https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | OECD iLibrary.]</ref>
| average net salary = [[List of European countries by average wage|€4,201 / $4,756]] monthly (2024)<ref>[https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/04/taxing-wages-2025_20d1a01d/b3a95829-en.pdf#page176 Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | READ online.]</ref><ref>[https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html Taxing Wages 2024: Tax and Gender through the Lens of the Second Earner | OECD iLibrary.]</ref>
| edbr = {{decrease}} [[Ease of doing business index#Ranking|72nd (easy, 2020)]]<ref name=" World Bank and International Financial Corporation ">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/luxembourg |title=Ease of Doing Business in Luxembourg |publisher=Doingbusiness.org |access-date=2017-11-21 }}</ref>
| 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
| exports = $100 billion (2022 est.)<ref name="CIAWFLU"/>
| export-goods = machinery and equipment, steel products, chemicals, rubber products, glass
| export-partners = {{plainlist|
*{{flag|Germany}} 25.6%
*{{flag|Belgium}} 17.6%
*{{flag|France}} 14%
*{{flag|Netherlands}} 5.1%
*{{flag|Italy}} 4.1%
*{{flag|United Kingdom}} 4.1% 
*(2017)<ref name="CIAWFLU"/>}}
| imports = $50 billion (2022 est.)<ref name="CIAWFLU"/>
| import-goods = commercial aircraft, minerals, chemicals, metals, foodstuffs, luxury consumer goods
| import-partners = {{plainlist|
*{{flag|Belgium}} 32%
*{{flag|Germany}} 24.9%
*{{flag|France}} 11.1%
*{{flag|United States}} 5.7%
*{{flag|Netherlands}} 5.1% 
*{{flag|China}} 4.7% 
*(2017)<ref name="CIAWFLU"/>}}
| current account = $3.112 billion (2017 est.)
| FDI = $50 billion (31 December 2021 est.)<ref name="CIAWFLU"/><br/> Abroad: NA<ref name="CIAWFLU"/>
| gross external debt = $5 trillion (31 March 2022 est.)<ref name="CIAWFLU"/>
| debt = {{plainlist|
*15% of GDP (2022)<ref name="1st Notif">{{cite web |title=Euro area and EU27 government deficit both at 0.5% of GDP|url=https://ec.europa.eu/eurostat/documents/2995521/10294648/2-22042020-AP-EN.pdf |website=ec.europa.eu/eurostat |publisher=Eurostat |access-date=28 April 2020}}</ref>
*€20 billion (2022)<ref name="1st Notif"/>}}
| revenue = 30% of GDP (2019)<ref name="1st Notif"/>
| expenses = 25% of GDP (2019)<ref name="1st Notif"/>
| balance = {{plainlist|
*€5 billion surplus (2022)<ref name="1st Notif"/>
*5% of GDP (2022)<ref name="1st Notif"/>}}
| reserves = $1.5 billion (31 December 2021 est.)<ref name="CIAWFLU"/>
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=https://www.spglobal.com/ratings/en/research/articles/210817-sovereign-ratings-list-12065231 |access-date=11 September 2024}}</ref>
*AAA (Domestic)
*AAA (Foreign)
*AAA (T&C Assessment)
*Outlook: Stable<ref name=guardian>{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |url=https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |access-date=31 May 2011}}</ref>
*[[Moody's]]:<ref name=guardian/>
*Aaa
*Outlook: Stable
*[[Fitch Group|Fitch]]:<ref name=guardian/>
*AAA
*Outlook: Positive
*Scope:<ref name=Scope>{{Cite web|url=https://scoperatings.com/ratings-and-research/rating/EN/178723|title=Scope affirms the Grand Duchy of Luxembourg's credit ratings at AAA with Stable Outlook|website=Scope Ratings|access-date=5 May 2025}}</ref>
*AAA
*Outlook: Stable}}
| aid = {{plainlist|
*€65 million from [[European Structural and Investment Funds]] (2007–2013)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/lu_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20171225203037/https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/lu_en.pdf |archive-date=25 December 2017 |url-status=live }}</ref>
*€140 million from [[European Structural and Investment Funds]] (2014–2020)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_lu_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20170420135423/https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_lu_en.pdf |archive-date=20 April 2017 |url-status=live }}</ref>}}
}}
[[File:Labour productivity levels in europe.svg|thumb|250px|The [[Workforce productivity|labour productivity]] level of Luxembourg is one of the highest in Europe. [[OECD]], 2012.]]
The '''economy of [[Luxembourg]]''' is largely dependent on the banking, steel, and industrial sectors. Citizens of Luxembourg enjoy the  highest [[Lists of countries by GDP per capita|per capita gross domestic product]] in the world, according to an [[International Monetary Fund|IMF]] estimate in 2022.<ref name="IMF">{{cite web |date=11 October 2022 |title=World Economic Outlook Database, October 2022 |url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=512,914,612,171,614,311,213,911,314,193,122,912,313,419,513,316,913,124,339,638,514,218,963,616,223,516,918,748,618,624,522,622,156,626,628,228,924,233,632,636,634,238,662,960,423,935,128,611,321,243,248,469,253,642,643,939,734,644,819,172,132,646,648,915,134,652,174,328,258,656,654,336,263,268,532,944,176,534,536,429,433,178,436,136,343,158,439,916,664,826,542,967,443,917,544,941,446,666,668,672,946,137,546,674,676,548,556,678,181,867,682,684,273,868,921,948,943,686,688,518,728,836,558,138,196,278,692,694,962,142,449,564,565,283,853,288,293,566,964,182,359,453,968,922,714,862,135,716,456,722,942,718,724,576,936,961,813,726,199,733,184,524,361,362,364,732,366,144,146,463,528,923,738,578,537,742,866,369,744,186,925,869,746,926,466,112,111,298,927,846,299,582,487,474,754,698,&s=PPPPC,&sy=2020&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |access-date=13 October 2022 |website=IMF.org |publisher=[[International Monetary Fund]]}}</ref> Among [[OECD]] nations, Luxembourg has a highly efficient and strong [[Social welfare in Luxembourg|social security system]]; social welfare expenditure stood at [[Welfare state#Effects|roughly 21.9% of GDP]].<ref name="Kenworthy">{{Cite journal |jstor = 3005973|title = Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment|journal = Social Forces|volume = 77|issue = 3|pages = 1119–1139|last1 = Kenworthy|first1 = Lane|year = 1999|doi = 10.2307/3005973|url = http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-url = https://web.archive.org/web/20130810134045/http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-date = 10 August 2013|url-status = live}}</ref><ref name="Bradley et al.">{{Cite journal |jstor = 3088901|title = Determinants of Relative Poverty in Advanced Capitalist Democracies|journal = American Sociological Review|volume = 68|issue = 1|pages = 22–51|last1 = Moller|first1 = Stephanie|last2 = Huber|first2 = Evelyne|last3 = Stephens|first3 = John D.|last4 = Bradley|first4 = David|last5 = Nielsen|first5 = François|year = 2003|doi = 10.2307/3088901}}</ref><ref>{{Cite web | url=https://www.oecd.org/social/expenditure.htm | title=Social Expenditure – Aggregated data|work=[[Organisation for Economic Co-operation and Development]]}}</ref>

Prior to the mid-19th century, Luxembourg was primarily rural and mostly isolated from commerce with neighboring economies.<ref name=":2" /> In the late 19th century, Luxembourg's dominant sector was steel industry.<ref name=":2" /> Over time, the main economic sector became finance.<ref name=":3" /> 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.<ref name=":4">{{Cite news |date=2021 |title=Shedding Light on Big Secrets in Tiny Luxembourg |url=https://www.occrp.org/en/project/openlux/shedding-light-on-big-secrets-in-tiny-luxembourg |work=OCCRP}}</ref><ref>{{Cite web |date=2024-11-05 |title=Ten years on, ‘Lux Leaks’ remains a byword for corporate tax chicanery |url=https://www.icij.org/investigations/luxembourg-leaks/ten-years-on-lux-leaks-remains-a-byword-for-corporate-tax-chicanery/ |website=ICIJ |language=en-US}}</ref>

==History==
From 1715 to 1791, Luxembourg was under Austro-Hungarian rule.<ref name=":2">{{Cite journal |last=Schifano |first=Sonia |last2=Paccoud |first2=Antoine |date=2024 |title=The Distribution of Land in Luxembourg (1766–1872): Family-Level Wealth Persistence in the Midst of Institutional Change |url=https://www.cambridge.org/core/journals/journal-of-economic-history/article/distribution-of-land-in-luxembourg-17661872-familylevel-wealth-persistence-in-the-midst-of-institutional-change/3184D5D6BA7CD9D8A86748DA2954E864 |journal=The Journal of Economic History |language=en |doi=10.1017/S0022050724000421 |issn=0022-0507|doi-access=free }}</ref> At the time, it was predominantly rural.<ref name=":2" /> It has been described as largely isolated.<ref name=":2" /> It had no road connections to Brussels, which limited its ability to trade with neighbors.<ref name=":2" /> Towards the end of the 18th century, long-distance paved roads were constructed, which integrated Luxembourg with neighboring markets.<ref name=":2" />

The first land survey in Luxembourg was conducted after a decree by Maria-Theresa in 1766.<ref name=":2" /> The land survey was part of a broader reform effort to abolish certain feudal privileges and encourage more egalitarianism.<ref name=":2" />

Full abolition of feudalism in Luxembourg took place in 1795 when Luxembourg was made part of the French revolutionary regime.<ref name=":2" /> It was part of Napoleonic France until 1815 when the [[Congress of Vienna]] gave the Eastern part of Luxembourg to Prussia while the remainder formed the Grand Duchy of Luxembourg under Dutch rule.<ref name=":2" /> Under Dutch rule, new taxes and customs tariffs were introduced, which harmed commerce in Luxembourg and contributed to it remaining a rural country.<ref name=":2" />

The 1839 Treaty of London divided part of Luxembourg into a province of newly independent Belgium while the remainder became the independent Grand Duchy of Luxembourg.<ref name=":2" /> During the first half of the 19th century, Luxembourg remained rural, although there was an emergence of a textile industry.<ref name=":2" /> In the second half of the 19th century, Luxembourg developed a steel industry, which would become the dominant sector.<ref name=":2" /> 

==Sectors==
In 2013 the GDP was $60.54 billion of which services, including the financial sector, produced 86%. The financial sector comprised 36% of GDP, industry comprised 13.3% and agriculture only 0.3%.<ref name=":3">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/luxembourg/|title=The World Factbook|date=2014-06-20|publisher=[[Central Intelligence Agency]]|access-date=16 November 2014}}</ref>

=== The financial center ===

==== Banking ====
[[File:Euro banknotes 2002.png|left|thumb|Luxembourg has been part of the [[eurozone]] since 1999.]]
Banking is the largest sector in the Luxembourg economy. In the 2019 [[Global Financial Centres Index]], Luxembourg was ranked as having the 25th most competitive financial center in the world, and third most competitive in Europe after [[Economy of London#Financial services|London]] and [[Zürich#Economy|Zürich]].<ref>{{cite web|url=http://www.longfinance.net/images/gfci/gfci_21.pdf|archive-url=https://web.archive.org/web/20170611000617/http://www.longfinance.net/images/gfci/gfci_21.pdf|url-status=dead|archive-date=2017-06-11|title=The Global Financial Centres Index 21|date=March 2017|publisher=Long Finance}}</ref> The country has specialised in the cross-border [[fund administration]] business. As Luxembourg's domestic market is relatively small, the country's financial centre is predominantly international. At the end of March 2009, there were 152 banks in Luxembourg, with over 27,000 employees. Political stability, good communications, easy access to other European centres, skilled multilingual staff, a tradition of banking secrecy and cross-border financial expertise have all contributed to the growth of the financial sector. These factors have contributed to a [[Corruption Perceptions Index]] of 8.3 and a DAW Index ranking of 10 in 2012; the latter the highest in Europe.<ref>Transparency International, 2008</ref> Germany accounts for the largest-single grouping of banks, with [[Scandinavia]]n, Japanese, and major US banks also heavily represented. Total assets exceeded €929 billion at the end of 2008. More than 9,000 holding companies are established in Luxembourg. The [[European Investment Bank]]—the financial institution of the [[European Union]]—is also located there.

Luxembourg enterprises expected negative investment in 2023 due to slowing economic growth and tighter monetary policy. The net balance of enterprises anticipating an increase in investment minus those expecting a fall is negative at -4%, far lower than the EU average of 14%.<ref>{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230340-econ-eibis-2023-luxembourg |title=EIB Investment Survey 2023 - Luxembourg overview |date=2024-01-31 |publisher=European Investment Bank |isbn=978-92-861-5673-1 |language=EN}}</ref>

==== Holdings ====
Since the Holding Act of 1929, Luxembourg has been an attractive location for [[tax avoidance]].<ref name=":0">{{Cite journal |last1=Calabrese |first1=Matteo |last2=Majerus |first2=Benoît |date=2023 |title=Archaeology of a Treasure Island: Actors and Practices of Holding Companies in Luxembourg (1929–1940) |url=https://www.cambridge.org/core/journals/contemporary-european-history/article/archaeology-of-a-treasure-island-actors-and-practices-of-holding-companies-in-luxembourg-19291940/C425D2D9D2569A1C2A869148FA428932 |journal=Contemporary European History |language=en |pages= 1–18|doi=10.1017/S0960777323000437 |issn=0960-7773|doi-access=free }}</ref> A network of lawyers, bankers and political elites have since then maintained an infrastructure of regulatory codes, legal expertise and shell companies that enable tax avoidance.<ref name=":1">{{Cite journal |last1=Calabrese |first1=Matteo |last2=Majerus |first2=Benoît |date=2023 |title=Archaeology of a Treasure Island: Actors and Practices of Holding Companies in Luxembourg (1929–1940) |url=https://www.cambridge.org/core/journals/contemporary-european-history/article/archaeology-of-a-treasure-island-actors-and-practices-of-holding-companies-in-luxembourg-19291940/C425D2D9D2569A1C2A869148FA428932 |journal=Contemporary European History |pages=1–18 |language=en |doi=10.1017/S0960777323000437 |issn=0960-7773|doi-access=free }}</ref> Concern about Luxembourg's banking secrecy laws, and its reputation as a tax haven, led in April 2009 to it being added to a "grey list" of nations with questionable banking arrangements by the G20,<ref>{{Cite news |date=2011-11-08 |title=Country profile: Luxembourg |language=en-GB |work=BBC |url=http://news.bbc.co.uk/2/hi/europe/country_profiles/1061821.stm |access-date=2018-12-31}}</ref> a list from which it was removed in 2009.<ref>{{cite news |date=29 July 2009 |title=Luxembourg and Belgium removed from 'grey list' |newspaper=European voice |url=http://www.europeanvoice.com/article/imported/luxembourg-and-belgium-removed-from-grey-list-/65629.aspx}}</ref> This concern has led Luxembourg to modify its tax legislation to avoid conflict with the tax authorities of European Union Members. For example, the classic tax exempt 1929 Holding Company was outlawed 31 December 2010, as it was deemed an illegal state aid by the European Commission.<ref>Luxembourg Company Registration [http://www.healyconsultants.com/company-incorporation/luxembourg-company-formation.html Healy Consultants] Retrieved 3 September 2013.</ref>

Nearly 90 percent of companies operating in Luxembourg are foreign.<ref name=":4" /> Approximately 40 percent of Luxembourg companies do not engage in any meaningful economic activity in Luxembourg: they just hold assets in Luxembourg.<ref name=":4" />

===== The early beginnings of the financial center =====
Contrary to the belief of a large number of national historians, the financial center of Luxembourg was not a product that simply saw success out of nowhere in the 70s.<ref>{{Cite journal |last1=Majerus |first1=Benoît |last2=Zenner |first2=Benjamin |date=2020-07-03 |title=Too small to be of interest, too large to grasp? Histories of the Luxembourg financial centre |url=https://www.tandfonline.com/doi/full/10.1080/13507486.2020.1751587 |journal=European Review of History: Revue européenne d'histoire |language=en |volume=27 |issue=4 |pages=548–562 |doi=10.1080/13507486.2020.1751587 |s2cid=219469008 |issn=1350-7486}}</ref> In their article, Calabrese and Majerus argue that the Holding Law of 1929 (H29) was more than just a historical side note, but rather a foundation that laid the future of the country’s financial success. In essence the law was a legal tool that would help companies in avoiding [[double taxation]] on [[financial asset]]s,<ref name=":0" /> mainly by creating a [[dummy corporation]]s and profiting from the [[Tax haven|low taxes]] the country offered for these kinds of companies. The newly introduced Holding regime was successful. Within a span of three years, the capital estimations for the [[Holding company|holding companies]] not only met but exceeded expectations, reaching a total surpassing 2 billion [[Luxembourg franc]]s.<ref name=":1" /> Among the biggest holdings was The Ford Investment Company set up in early 1930. The Holding, enabled by the legislation, could avoid UK tax on the [[Dividend tax|dividends]] of its [[Subsidiary|subsidiary companies]] in Europe. This type of company could however, also be used to loan money or make investments, like in the case of [[Ford Motor Company|Ford]] by buying factories for European [[subsidiaries]] for example.<ref name=":1" /> The Law was accompanied by the creation of the [[Luxembourg Stock Exchange]] a year earlier, which would constitute another important institution to round off the construction of a national financial center.<ref>{{Cite book |last=Haag |first=Emile |title=The Rise of Luxembourg from Independence to Success: 1815-2015 - A Historical Portrait - Two hundred years of modern Luxembourg history |date=2015-06-11 |publisher=Editions Saint - Paul |isbn=978-2-87963-980-2 |location=Luxembourg |language=English}}</ref> In the interwar period, the role these [[Holding company|Holding]] companies played as a source of revenue started to materialize. While the discussions on the adoption of the Holding Law saw opposition members argue against it,<ref name=":0" /> discussions on later modifications on the Law would not see a strong opposition anymore due to its contribution to the state’s [[tax revenue]]s.

H29 also enabled the creation of networks and practices. Following its implementation, Luxembourg experienced the establishment of a network involving [[lawyer]]s, [[bank]]s, and [[Notary|notaries]] closely associated with the local political elite. This network successfully developed and maintained an infrastructure comprising regulatory codes, legal expertise, and [[Shell corporation|shell companies]], rendering it appealing within the European market for [[tax avoidance]].<ref name=":1" /> Additionally, H29 majorly contributed to the establishment of a [[legal framework]] that would pave the way for the future use of [[investment fund]]s,<ref name=":0" /> by establishing a positive reputation among [[investor]]s and proving itself to be a competent key-player on the market. As a result, Luxembourg was chosen in 1963 to list the first and a large part of the [[Eurobond (external bond)|Eurobonds]] on the [[Luxembourg Stock Exchange]],<ref>{{Cite journal |last=Zenner |first=Benjamin |date=2021-01-05 |title=Banco Ambrosiano : les sociétés holding et la place financière luxembourgeoise entre scandalisation et banalisation |url=https://www.cairn.info/revue-entreprises-et-histoire-2020-4-page-88.htm?ref=doi |journal=Entreprises et histoire |volume=101 |issue=4 |pages=88–99 |doi=10.3917/eh.101.0088 |s2cid=234912990 |issn=1161-2770}}</ref>  a choice that only could have been made with the awareness of a [[Financial centre|financial center]] that could keep up with others such as London, which were also used in the case of [[Eurobond (external bond)|Eurobonds]].

Consequently, the Holding Law of 1929 had a large and long lasting impact on the construction of a domestic financial place, an impact that should not be disregarded when presenting the economic history of the country.

===Steel===
{{Main|Steel industry in Luxembourg}}
A key event in the economic history of Luxembourg was the 1876 introduction of English [[metallurgy]]{{Citation needed|date=September 2022}}. The refining process led to the development of the [[steel industry in Luxembourg]] and founding of the [[Arbed]] company in 1911.

The restructuring of the industry and increasing government ownership in [[ARBED]] (31%) began as early as 1974.

In 2001, Arbed merged with [[Aceralia]] and [[Usinor]] to form [[Arcelor]], which, in 2007, merged with [[Mittal Steel Company]] to form [[ArcelorMittal]].

===Telecommunications===
{{main|Telecommunications in Luxembourg}}
Government policies promote the development of Luxembourg as an audiovisual and communications center. [[RTL Group|Radio-Television-Luxembourg]] is Europe's premier private radio and television broadcaster. The government-backed Luxembourg satellite company [[SES (company)|SES]] (formerly Société Européenne des Satellites) was created in 1986 to install and operate a satellite telecommunications system for transmission of television programs throughout Europe. The first [[SES (company)|SES]] [[Astra (satellite)|Astra]] satellite, the 16-channel RCA 4000 [[Astra 1A]], was launched by the [[Ariane (rocket)|Ariane Rocket]] in December 1988. [[SES (company)|SES]] presently [when?] constitutes the world largest satellite services company in terms of revenue.

67% of Luxembourg enterprises use innovative digital technologies. Luxembourg firms choose [[robot]]s (74%), [[Internet of things|IoT]] (43%), and [[Digital platform (infrastructure)|digital platforms]] (42%), over other digital technologies.<ref>{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20230340-econ-eibis-2023-luxembourg |title=EIB Investment Survey 2023 - Luxembourg overview |date=2024-01-31 |publisher=European Investment Bank |isbn=978-92-861-5673-1 |language=EN}}</ref>

===Tourism===
{{Main|Tourism in Luxembourg}}

Tourism is an important component of the national economy, representing about 8.3% of GDP in 2009 and employing some 25,000 people or 11.7% of the working population.<ref>[http://www.station.lu/?p=edito&a=external&id=107145 "Lux is the place to be for business travellers"], ''News 352'', 10 February 2011. Retrieved 14 February 2011.</ref> Despite the current crisis, the [[Luxembourg|Grand Duchy]] still welcomes over 900,000 visitors a year who spend an average of 2.5 nights in hotels, hostels or on camping sites.<ref name=statec>[http://www.statistiques.public.lu/catalogue-publications/bulletin-Statec/2010/PDF-Bulletin-6-2010.pdf "Bulletin du Statec n°6-2010"]. {{in lang|fr}} Retrieved 14 February 2011.</ref> Business travel is flourishing representing 44% of overnight stays in the country and 60% in the capital, up 11% and 25% between 2009 and 2010.<ref>[https://web.archive.org/web/20110722155442/http://www.mdt.public.lu/fr/actualites/2010/11/CP-randonnee-touristique/index.html "La saison touristique 2010 : une stabilisation à bas niveau"], ''Ministère des Classes moyennes et du Tourisme''. {{in lang|fr}} Retrieved 14 February 2011.</ref>

===Agriculture===
Luxembourg's small but productive agricultural sector is highly subsidized, mainly by the EU and the government. It employs about 1–3% of the workforce. Most farmers are engaged in dairy and meat production. [[Luxembourg wine|Vineyards]] in the Moselle Valley annually produce about 15 million litres of dry white wine, most of which is consumed within Luxembourg and also in Germany, France, and Belgium on a lesser scale.{{citation needed|date=March 2023}}

== Data ==
In 2022, the sector with the highest number of companies registered in Luxembourg is Finance, Insurance, and Real Estate with 89,748 companies followed by Services and Retail Trade with 31,658 and 6,571 companies respectively.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/luxembourg | title=Industry Breakdown of Companies in Luxembourg | website=HitHorizons}}</ref>

The following table shows the main economic indicators in 1980–2017. Inflation under 2% is in green.<ref>{{Cite web|url=https://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?pr.x=7&pr.y=14&sy=1980&ey=2023&scsm=1&ssd=1&sort=country&ds=.&br=1&c=137&s=NGDP_RPCH,PPPGDP,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP&grp=0&a=|title=Report for Selected Countries and Subjects|website=www.imf.org|language=en-US|access-date=2018-10-07}}</ref>
{{static row numbers}}{{sticky header}}
{| class="wikitable sortable sticky-header" style="text-align:center;"
!Year
!GDP<br /><small>(in Bil. US$ PPP)</small>
!GDP per capita<br /><small >(in US$ PPP)</small>
!GDP
<small>(in bil. US$ nominal)</small>
!GDP growth<br /><small>(real)</small>
!Inflation rate<br /><small>(in Percent)</small>
!Unemployment <br /><small>(in Percent)</small>
!Government debt<br /><small>(in % of GDP)</small>
|-
|1980
|5.7
|15,611
|6.4
|{{Increase}}3.2%
|{{IncreaseNegative}}6.3%
|0.7%
|n/a
|-
|1981
|{{increase}}6.3
|{{increase}}17,153
|{{Decrease}}5.5
|{{increase}}0.8%
|{{IncreaseNegative}}8.1%
|{{IncreaseNegative}}1.0%
|n/a
|-
|1982
|{{Increase}}6.7
|{{Increase}}18,391
|{{Decrease}}4.6
|{{Increase}}1.0%
|{{IncreaseNegative}}9.4%
|{{IncreaseNegative}}1.3%
|n/a
|-
|1983
|{{Increase}}7.1
|{{Increase}}19,478
|{{Decrease}}4.5
|{{increase}}1.9%
|{{IncreaseNegative}}8.7%
|{{IncreaseNegative}}1.6%
|n/a
|-
|1984
|{{Increase}}7.7
|{{Increase}}21,106
|{{Decrease}}4.4
|{{increase}}4.7%
|{{IncreaseNegative}}5.6%
|{{IncreaseNegative}}1.7%
|n/a
|-
|1985
|{{Increase}}8.4
|{{Increase}}22,956
|{{Increase}}4.5
|{{Increase}}5.6%
|{{IncreaseNegative}}14.8%
|{{Steady}}1.7%
|n/a
|-
|1986
|{{Increase}}9.4
|{{Increase}}25,638
|{{Increase}}6.6
|{{increase}}10.0%
|{{Increase}}0.3%
|{{decreasePositive}}1.5%
|n/a
|-
|1987
|{{Increase}}10.1
|{{Increase}}27,155
|{{Increase}}8.2
|{{Increase}}4.0%
|{{DecreasePositive}}−0.1%
|{{IncreaseNegative}}1.7%
|n/a
|-
|1988
|{{Increase}}11.3
|{{Increase}}30,223
|{{Increase}}9.3
|{{Increase}}8.5%
|{{Increase}}1.4%
|{{decreasePositive}}1.5%
|n/a
|-
|1989
|{{Increase}}12.9
|{{Increase}}34,137
|{{Increase}}9.9
|{{Increase}}9.8%
|{{IncreaseNegative}}3.4%
|{{decreasePositive}}1.4%
|n/a
|-
|1990
|{{Increase}}14.1
|{{Increase}}36,863
|{{Increase}}12.6
|{{Increase}}5.3%
|{{IncreaseNegative}}3.7%
|{{decreasePositive}}1.3%
|n/a
|-
|1991
|{{increase}}15.8
|{{Increase}}40,826
|{{Increase}}13.7
|{{Increase}}8.6%
|{{IncreaseNegative}}3.1%
|{{IncreaseNegative}}1.4%
|n/a
|-
|1992
|{{increase}}16.5
|{{increase}}41,943
|{{Increase}}15.3
|{{Increase}}1.8%
|{{IncreaseNegative}}3.2%
|{{IncreaseNegative}}1.6%
|n/a
|-
|1993
|{{Increase}}17.6
|{{Increase}}44,115
|{{Increase}}15.7
|{{Increase}}4.2%
|{{IncreaseNegative}}3.6%
|{{IncreaseNegative}}2.1%
|n/a
|-
|1994
|{{Increase}}18.6
|{{Increase}}46,104
|{{Increase}}17.5
|{{Increase}}3.8%
|{{IncreaseNegative}}2.2%
|{{IncreaseNegative}}2.7%
|n/a
|-
|1995
|{{Increase}}19.3
|{{Increase}}47,516
|{{Increase}}20.6
|{{Increase}}1.4%
|{{Increase}}1.9%
|{{IncreaseNegative}}3.0%
|8.9%
|-
|1996
|{{Increase}}19.9
|{{Increase}}48,412
|{{Decrease}}20.5
|{{Increase}}1.5%
|{{Increase}}1.2%
|{{IncreaseNegative}}3.2%
|{{decreasePositive}}8.6%
|-
|1997
|{{Increase}}21.5
|{{Increase}}51,502
|{{Decrease}}18.4
|{{Increase}}5.9%
|{{Increase}}1.4%
|{{IncreaseNegative}}3.3%
|{{decreasePositive}}8.5%
|-
|1998
|{{Increase}}23.1
|{{Increase}}54,757
|{{Increase}}19.3
|{{Increase}}6.5%
|{{Increase}}1.0%
|{{decreasePositive}}3.1%
|{{decreasePositive}}8.1%
|-
|1999
|{{increase}}25.4
|{{increase}}59,529
|{{Increase}}21.1
|{{increase}}8.4%
|{{Increase}}1.0%
|{{decreasePositive}}2.9%
|{{decreasePositive}}7.1%
|-
|2000
|{{Increase}}28.8
|{{Increase}}65,079
|{{Increase}}21.2
|{{increase}}8.4%
|{{IncreaseNegative}}3.8%
|{{decreasePositive}}2.2%
|{{decreasePositive}}6.5%
|-
|2001
|{{Increase}}29.6
|{{Increase}}67,331
|{{Increase}}21.4
|{{Increase}}2.5%
|{{IncreaseNegative}}2.4%
|{{decreasePositive}}2.0%
|{{IncreaseNegative}}6.9%
|-
|2002
|{{Increase}}31.2
|{{Increase}}70,249
|{{Increase}}23.6
|{{Increase}}3.8%
|{{IncreaseNegative}}2.1%
|{{IncreaseNegative}}2.5%
|{{decreasePositive}}6.8%
|-
|2003
|{{Increase}}32.3
|{{Increase}}72,127
|{{Increase}}29.7
|{{Increase}}1.6%
|{{IncreaseNegative}}2.5%
|{{IncreaseNegative}}3.3%
|{{Steady}}6.8%
|-
|2004
|{{Increase}}34.4
|{{Increase}}75,663
|{{Increase}}35.0
|{{Increase}}3.6%
|{{IncreaseNegative}}3.2%
|{{IncreaseNegative}}4.0%
|{{IncreaseNegative}}7.3%
|-
|2005
|{{Increase}}36.7
|{{Increase}}79,480
|{{Increase}}37.7
|{{Increase}}3.2%
|{{IncreaseNegative}}3.7%
|{{Steady}}4.0%
|{{IncreaseNegative}}7.4%
|-
|2006
|{{Increase}}39.7
|{{Increase}}84,722
|{{Increase}}42.9
|{{Increase}}5.2%
|{{IncreaseNegative}}3.0%
|{{Steady}}4.0%
|{{IncreaseNegative}}7.8%
|-
|2007
|{{Increase}}44.2
|{{Increase}}92,837
|{{Increase}}51.6
|{{Increase}}8.4%
|{{IncreaseNegative}}2.7%
|{{Steady}}4.0%
|{{decreasePositive}}7.7%
|-
|2008
|{{Increase}}44.5
|{{decrease}}91,977
|{{Increase}}58.8
|{{decrease}}−1.3%
|{{IncreaseNegative}}4.1%
|{{IncreaseNegative}}4.1%
|{{IncreaseNegative}}14.9%
|-
|2009
|{{Decrease}}42.9
|{{decrease}}86,894
|{{Decrease}}54.4
|{{decrease}}−4.4%
|{{Increase}}0.0%
|{{IncreaseNegative}}5.6%
|{{IncreaseNegative}}15.7%
|-
|2010
|{{Increase}}45.5
|{{Increase}}90,662
|56.3
|{{increase}}4.9%
|{{IncreaseNegative}}2.8%
|{{IncreaseNegative}}6.0%
|{{IncreaseNegative}}19.8%
|-
|2011
|{{Increase}}47.6
|{{Increase}}92,970
|{{Increase}}61.7
|{{increase}}2.5%
|{{IncreaseNegative}}3.7%
|{{Steady}}6.0%
|{{decreasePositive}}18.7%
|-
|2012
|{{Increase}}48.3
|{{decrease}}92,102
|{{Decrease}}59.8
|{{decrease}}−0.4%
|{{IncreaseNegative}}2.9%
|{{IncreaseNegative}}6.1%
|{{IncreaseNegative}}21.7%
|-
|2013
|{{Increase}}50.9
|{{Increase}}94,824
|{{Increase}}65.2
|{{Increase}}3.7%
|{{Increase}}1.7%
|{{IncreaseNegative}}6.8%
|{{IncreaseNegative}}23.7%
|-
|2014
|{{Increase}}54.8
|{{Increase}}99,738
|{{Increase}}68.8
|{{Increase}}5.8%
|{{Increase}}0.7%
|{{IncreaseNegative}}7.1%
|{{decreasePositive}}22.7%
|-
|2015
|{{Increase}}57.0
|{{Increase}}101,255
|{{Decrease}}60.1
|{{Increase}}2.9%
|{{Increase}}0.1%
|{{decreasePositive}}6.8%
|{{decreasePositive}}22.0%
|-
|2016
|{{Increase}}59.5
|{{Increase}}103,286
|{{Increase}}62.2
|{{Increase}}3.1%
|{{Increase}}0.0%
|{{decreasePositive}}6.3%
|{{decreasePositive}}20.8%
|-
|2017
|{{Increase}}62.8
|{{Increase}}106,373
|{{Increase}}65.7
|{{Increase}}3.5%
|{{IncreaseNegative}}2.1%
|{{decreasePositive}}5.8%
|{{IncreaseNegative}}23.0%
|}

== Energy ==
{{main|Energy in Luxembourg}}
In 1978, Luxembourg tried to build a 1,200 [[Watt#Megawatt|MW]] nuclear reactor but dropped the plans after threats of major protests.<ref>"Reactors." ''Wise – Nuclear issues information services.'' July 1978. <http://www10.antenna.nl/wise/index.html?http://www10.antenna.nl/wise/b2/reactors.html {{Webarchive|url=https://web.archive.org/web/20120219050316/http://www10.antenna.nl/wise/index.html?http://www10.antenna.nl/wise/b2/reactors.html |date=19 February 2012 }}></ref>
Luxembourg uses imported oil and natural gas for the majority of its energy generation.<ref>"LUXEMBOURG – Energy Mix Fact Sheet." ''Europa.'' January 2007. {{cite web |url=http://ec.europa.eu/energy/energy_policy/doc/factsheets/mix/mix_lu_en.pdf |title=Archived copy |access-date=2008-09-25 |url-status=dead |archive-url=https://web.archive.org/web/20081219174323/http://ec.europa.eu/energy/energy_policy/doc/factsheets/mix/mix_lu_en.pdf |archive-date=19 December 2008}}</ref>

== Spaceflight and space resource extraction ==

Luxembourg is a member of the [[European Space Agency]]<ref name=esanewmembers>{{cite web|title=About ESA - Romania accedes to ESA Convention|url=http://www.esa.int/esaMI/About_ESA/SEMF0P6SXIG_0.html|publisher=[[ESA]]|access-date=14 January 2012|archive-url=https://web.archive.org/web/20120115225935/http://www.esa.int/esaMI/About_ESA/SEMF0P6SXIG_0.html|archive-date=15 January 2012|url-status=dead}}</ref>
where Luxembourg contributed 23 million Euros in 2015.<ref name=esa2015>
{{cite web | url = http://www.esa.int/For_Media/Highlights/ESA_budget_2015 | title = ESA Budget for 2015 | work = esa.int | date = 16 January 2015}}</ref>

The world's biggest satellite operator ([[SES (company)|SES]]) has its origin and headquarters in Betzdorf, Luxembourg.<ref name="SES site">{{cite web|title=Our History|url=https://www.ses.com/about-us/our-history-highlights|website=SES - Beyond Frontiers|publisher=SES|access-date=23 January 2018|archive-date=30 March 2023|archive-url=https://web.archive.org/web/20230330210820/https://www.ses.com/about-us/our-history-highlights|url-status=dead}}</ref>

In February 2016, the [[Government of Luxembourg]] announced that it would attempt to "jump-start an industrial sector to mine asteroid resources in space" by, among other things, creating a "legal framework" and regulatory incentives for companies involved in the industry.<ref name=sn20160206>
{{cite news |last=de Selding|first=Peter B. |url=http://spacenews.com/luxembourg-to-invest-in-space-based-asteroid-mining/ |title=Luxembourg to invest in space-based asteroid mining |work=[[SpaceNews]] |date=2016-02-03 |access-date=2016-02-06 |quote=''The Luxembourg government on 3 Feb. announced it would seek to jump-start an industrial sector to mine asteroid resources in space by creating regulatory and financial incentives.'' }}</ref><ref name=abc201602>
{{cite news |url=http://www.abc.net.au/news/2016-02-04/space-mining-plans-unveiled-by-luxembourg/7138380 |title=Luxembourg plans to pioneer asteroid mining |work=ABC News |date=2016-02-03 |access-date=2016-02-08 |quote=''The Government said it planned to create a legal framework for exploiting resources beyond Earth's atmosphere, and said it welcomed private investors and other nations.'' }}</ref>
By June 2016, announced that it would "invest more than {{USD|200 million}} in research, technology demonstration, and in the direct purchase of equity in companies relocating to Luxembourg."<ref name=sn2060603>
{{cite news |last=de Selding|first=Peter B. |url=http://spacenews.com/luxembourg-invests-to-become-the-silicon-valley-of-space-resource-mining/ |title=Luxembourg invests to become the 'Silicon Valley of space resource mining' |work=[[SpaceNews]] |date=2016-06-03 |access-date=2016-06-04 }}</ref> By April 2017, three space mining corporations had established headquarters in Luxembourg.<ref>{{Cite web|url=http://www.spaceresources.public.lu/en.html|title = Space Resources| date=21 August 2019 }}</ref>

Luxembourg's new law took effect in August 2017, ensuring that private operators can be confident about their rights on resources they extract in space. The law provides that space resources can be owned by anyone, not just by Luxembourg citizens or companies."<ref>{{Cite news|url=https://www.ft.com/content/78e8cc84-7076-11e7-93ff-99f383b09ff9 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/78e8cc84-7076-11e7-93ff-99f383b09ff9 |archive-date=10 December 2022 |url-access=subscription |url-status=live|title=Space mining takes giant leap from sci-fi to reality|newspaper=Financial Times|date=19 October 2017|last1=Cookson|first1=Clive}}</ref>

==Transportation==
{{main|Transportation in Luxembourg}}
Luxembourg has efficient road, rail and air transport facilities and services. The road network has been significantly modernised in recent years with 147&nbsp;km of motorways connecting the capital to adjacent countries. The advent of the high-speed [[TGV]] link to Paris has led to renovation of the city's [[Luxembourg railway station|railway station]] while a new passenger terminal at [[Luxembourg Airport]] has recently been opened. The airport has known a sustained growth in passenger numbers during the last years (2015: 2.7 mio, 2020 : 4 mio expected), and the second stage of expansion is on its way.

Trams have been reintroduced to the capital (first core line operative in end 2017) and further lines are planned, including a tram/light-rail to Esch-sur-Alzette. In 2019, almost all public transport was made free to use for both residents and visitors.

==See also==
*[[Economy of Europe]]
*[[List of companies of Luxembourg]]
*[[The Integrated Traffic and Landscape Concept for the Grand Duchy of Luxembourg]]
*[[Social welfare in Luxembourg]]
*[[Luxembourg for Finance]]

==References==
{{Reflist}}

== Further reading ==
* {{Cite book|title = La croissance de l'économie luxembourgeoise|last = Kirsch|first = R.|year = 1971|location = Luxembourg City}}
* {{Cite book|title = Les fruits de la souveraineté nationale. Essai sur le développement de l'économie luxembourgeoise de 1815 à 1999: une vue institutionnelle|last = Bauler|first = A.|year = 2001|location = Luxembourg City}}
* {{Cite book|title = Un siècle d'Histoire industrielle (1873–1973). Belgique, Luxembourg, Pays-Bas. Industrialisation et sociétés|last1 = Leboutte|first1 = R.|year = 1998|location = Brussels|last2 = Puissant|first2 = J.|last3 = Scuto|first3 = D.}}
* Majerus, Benoît & Benjamin Zenner (2020) "[https://orbilu.uni.lu/handle/10993/43877 Too small to be of interest, too large to grasp? Histories of the Luxembourg financial centre.]" ''European Review of History''
*{{Cite book|title = Le Luxembourg et sa monnaie|last1 = Margue|first1 = P.|year = 1990|location = Luxembourg City|last2 = Jungblut|first2 = M.-P.}}
* {{Cite book|title = Luxembourg et les banques. De la révolution industrielle au 7e centre financier mondial|last1 = Trausch|first1 = G.|year = 1995|location = Luxembourg City|last2 = de Vreese|first2 = M.}}
* {{Cite book|title = Les mutations économiques et sociales de la société luxembourgeoise depuis la révolution française|last = Trausch|first = Gérard|publisher = STATEC|location = Luxembourg City|date = July 2012|series = Cahiers économiques|url = http://www.statistiques.public.lu/catalogue-publications/cahiers-economiques/2012/PDF-Cahier-113-2012.pdf|language = fr}}
* {{Cite book|title = Histoire de l'économie luxembourgeoise|last = Weber|first = P.|year = 1950|location = Luxembourg City}}
* {{Cite book|title = L'économie luxembourgeoise au 20e siècle|year = 1999|location = Luxembourg City|editor-last = Wey|editor-first = C.}}

==Notes==
{{reflist|group=note}}

==External links==
* [http://www.oecd.org/economy/economic-survey-luxembourg.htm Economic Survey of Luxembourg 2012] from the [[Organisation for Economic Co-operation and Development]] (OECD)
* [http://www.oecd.org/luxembourg/ OECD general page on Luxembourg]
* [http://www.statistiques.public.lu/ Government statistics] {{in lang|fr}}
* [https://www.cia.gov/the-world-factbook/countries/luxembourg/ Luxembourg] in ''[[The World Factbook]]''

{{Luxembourg topics}}
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{{Organisation for Economic Co-operation and Development}}
{{World Trade Organization}}
{{Economy of Europe}}

{{DEFAULTSORT:Economy of Luxembourg}}
[[Category:Economy of Luxembourg| ]]
[[Category:European Union member economies|Luxemburg]]
[[Category:OECD member economies|Luxembourg]]
[[Category:Economies of Europe by country|Luxembourg]]