Luxembourg

About Luxembourg

Background:

Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839, but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both World Wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union), and in 1999 it joined the euro currency area.

PEOPLE

Population:
491,775 (July 2009 est.)
country comparison to the world: 169

Nationality:
noun: Luxembourger(s)
adjective: Luxembourg

Ethnic groups:
Luxembourger 63.1%, Portuguese 13.3%, French 4.5%, Italian 4.3%, German 2.3%, other EU 7.3%, other 5.2% (2000 census)

Religions:
Roman Catholic 87%, other (includes Protestant, Jewish, and Muslim) 13% (2000)

Languages:
Luxembourgish (national language), German (administrative language), French (administrative language)

GOVERNMENT

Country Name:
conventional long form: Grand Duchy of Luxembourg
conventional short form: Luxembourg
local long form: Grand Duche de Luxembourg
local short form: Luxembourg

Government type:
constitutional monarchy

Capital:
name: Luxembourg
geographic coordinates: 49 36 N, 6 07 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October

Independence:
1839 (from the Netherlands)

Flag description:
three equal horizontal bands of red (top), white, and light blue; similar to the flag of the Netherlands, which uses a darker blue and is shorter; the coloring is derived from the Grand Duke's coat of arms (a red lion on a white and blue striped field)

ECONOMY

Economy - 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. 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. Following strong expansion from 2004 to 2007, Luxembourg's economy contracted 0.9% in 2008 and 4.6% in 2009. Nonetheless, 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 2% government budget deficit in 2009.

GDP (purchasing power parity):
$38.14 billion (2009 est.)
country comparison to the world: 98
$39.94 billion (2008 est.)
$40.32 billion (2007 est.)
note: data are in 2009 US dollars

GDP - per capita (PPP):
$77,600 (2009 est.)
country comparison to the world: 3
$82,200 (2008 est.)
$84,000 (2007 est.)
note: data are in 2009 US dollars

Budget:
revenues: $17.83 billion
expenditures: $19.76 billion (2009 est.)

Inflation rate (consumer prices):
0.5% (2009 est.)
country comparison to the world: 32
3.4% (2008 est.)

Industries:
banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism

Exports:
$14.05 billion (2009 est.)
country comparison to the world: 72
$21.43 billion (2008 est.)

Imports:
$18.69 billion (2009 est.)
country comparison to the world: 69
$27.73 billion (2008 est.)

Exchange rates:
euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005)