Data at glance of Luxembourg - average on period

variable 1980-1989 1990-1999 2000-2007 2008-2009 2010-2019 2022 2023 2024 2025 2026
real gdp growth 5.16 5.05 3.68 0.3 2.08 0.1 0.4 0.6 1.6 1.7
CPI % 4.46 2.24 2.97 1.4 1.49 2.9 2.3 2.5 2.1 2.2
Unemployment rate 1.47 2.57 3.54 5.65 6.13 5.2 5.8 6.0 5.9 6.1
Debt/GDP % - 9.33 8.64 17.2 21.38 24.7 26.3 27.0 28.0 28.9
Current account balance/GDP % - 10.95 7.03 5.8 5.95 6.8 4.3 4.7 4.5 4.7

Data derived from World Economic Outlook Database. To see main macroeconomic indicator in graphs click here

History

Founded in 963, Luxembourg became a grand duchy in 1815 and a constituent part of the Kingdom of the Netherlands after the Congress of Vienna. When Belgium declared independence from the Netherlands in 1839, Luxembourg lost more than half of its territory to Belgium but gained a larger measure of autonomy within the Kingdom of the Netherlands.  Luxembourg gained full independence in 1867 by promising to remain permanently neutral. Overrun by Germany in both world wars, its neutrality ended in 1948 when it entered into the Benelux Customs Union and joined NATO the following year. In 1957, Luxembourg became one of the six founding countries of the EEC (later the EU), and in 1999 it joined the euro currency zone.

Environment

Area: 2,586 sq km km2

Climate: modified continental with mild winters, cool summers

Natural resources: iron ore (no longer exploited), arable land

Ethnic characteristics

Groups: Luxembourger 52.9%, Portuguese 14.5%, French 7.6%, Italian 3.7%, Belgian 3%, German 2%, Spanish 1.3%, Romania 1%, other 14% (2022 est.)

Languages:

Religions: Christian (predominantly Roman Catholic) 70.6%, Muslim 2.3%, other (includes Buddhist, folk religions, Hindu, Jewish) 0.4%, unaffiliated 26.7% (2020 est.)

Government

Capital: Luxembourg

Government type: constitutional monarchy

Executive branch

Chief of state: Grand Duke GUILLAUME (since 3 October 2025)

Head of government: Prime Minister Luc FRIEDEN (since 17 November 2023)

Legislative branch

Description: Chamber of Deputies (Chambre des députés) - unicameral

Economic Overview

high-income EU and eurozone economy; global, highly capitalized banking sector; one of highest GDP-per-capita countries; strengthened domestic demand and lower interest rates contributing to economic growth; challenges include pension-system sustainability, labor-market dynamics, and energy price volatility

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

GDP by sector: Agriculture: 0.2% (2024 est.), Industry: 9% (2024 est.), Services: 81.9% (2024 est.)

Trade

Export partners: Germany 18%, France 15%, Belgium 8%, Netherlands 7%, Italy 6% (2023)

Export commodities: iron blocks, gas turbines, plastic products, rubber tires, plastics (2023)

Import partners: Belgium 26%, Germany 23%, France 10%, Netherlands 5%, USA 4% (2023)

Import commodities: cars, refined petroleum, electricity, plastic products, gas turbines (2023)

Geography

Western Europe, between France and Germany

Defence

Military expenditure: 2025: 2% of GDP (2025 est.)

Information derived from worldfactbook.io (Lupon Media), open successor to the CIA World Factbook. Data sourced from World Bank, IMF, UN and other international organizations.