Discover Luxembourg
"an open and dynamic economy in the heart of Europe"
Luxembourg, one of the smallest European Union Member States, is located between Germany, France and Belgium. It has an area of 2,586 square kilometres and approximately 500,000 inhabitants. Due to the country's strategic geographical location, and its status as a founding member for of the European Union, United Nations and NATO Luxembourg has managed to continuously develop and foster multilateral relations. These relations and the integration into worldwide networks have naturally supported the country in exceeding the limits of its actual size.
Luxembourg is a privileged economic and political partner at a European and international level. It forms an integral part of one of the largest economic and monetary areas in the world. The country’s main advantages are its strategic location as a gateway to Europe, its state-of-the-art logistics and telecommunications infrastructure, its qualified multilingual workforce, its attractive legal and tax framework, as well as its excellent quality of life.
Luxembourg’s GDP has grown by an average of approximately 5% in volume over the past 25 years. Furthermore has its economy been continuously outperforming those of neighbouring countries and has seen dynamic performance increases in strategically important business sectors.
Luxembourg’s wealth originated with the discovery of iron ore in the south of the country and the resulting development of a powerful iron and steel industry at worldwide level. The diversification of Luxembourg’s economy is illustrated by the presence of a wide range of business sectors, particularlyin the areas of chemical, plastics and synthetic materials, mechanical construction and industrial machinery, the processing of ferrous and non-ferrous metals, the car industry, precision instruments, electronic supplies, the glass industry and wood processing.
Luxembourg is now home to one of the ten leading financial sectors in the world. With approximately 150 highly experienced and skilled banking institutions, a successful investment fund industry, a dynamic insurance sector, skilled workers and specialized companies, Luxembourg now offers a full range of diversified and innovative financial services.
Luxembourg’s privileged location in Europe, halfway between London and Paris and halfway between Paris and Frankfurt, has allowed it to access larger economic markets relatively easily by developing and expanding foreign relations, by having a high-quality logistics centre and by attracting numerous foreign investors focussing on selling their goods and services in the European market with its 500 million inhabitants.
Luxembourg at a glance
- Area: 2,586 sq km
- Population: 500,000 inhabitants (including 40% of foreigners)
- A strategic location in an enlarged Europe
- An open economy
- International and multicultural environment
- Stable macroeconomic fundamentals
- High GDP growth
- High purchasing power
- A diversified industry, state-of-the-art technologies, pioneering products and services
- An international financial centre
- A leading logistics and communication centre
- Intense research and innovation activities
- Competitive levels of social security contributions
- A qualified workforce
- A rewarding tax environment
- Increasing public investment
- Easy access to policy makers (sovereignty principle)
- Multilingual population
- International crossroads
- European capital
- Exceptional quality of life
- Safe and friendly country