You are on page 1of 3

Luxembourg country

The Grand Duchy of Luxembourg - a small country landlocked by Belgium, France and Germany - is a
prominent financial centre.
With roots stretching back to the 10th century, Luxembourg's history is closely intertwined with that of
its more powerful neighbours, especially Germany.
Many of its inhabitants are trilingual in French, German and Luxembourgish.
Despite declaring its neutrality, Luxembourg was occupied by Germany during both World Wars.
After renewed occupation in the Second World War, Luxembourg abandoned its neutrality and became
a front-rank enthusiast for international co-operation.
Luxembourg's prosperity was formerly based on steel manufacturing. With the decline of that industry,
Luxembourg diversified and is now best known for its status as Europe's most powerful investment
management centre.
Grand Duchy of Luxembourg
Capital: Luxembourg
Population 523,000
Area 2,586 sq km (999 sq miles)
Major languages French, German, Luxembourgish
Major religion Christianity
Life expectancy 78 years (men), 83 years (women)
Currency euro
UN, World Bank
Getty Images

The Grand Duchy of Luxembourg has a long industrial tradition. The pioneers of the steel industry,
which made the wealth of the country in the late 19th and early 20th century, were followed in the
1960s by other major economic sectors.
The oil shock of 1973 transformed the Luxembourg industry and encouraged a service economy with
the development of the tertiary sector.
In 2002, ARBED (Aciéries réunies de Burbach, Eich, Dudelange, United Steelworks of Burbach, Eich,
Dudelange), the 'giant' Luxembourg steel producer, merged with two other steel companies, Usinor and
Aceralia, to become Arcelor, the world leader in steel production. Arcelor merged with Mittal Steel in
2006, creating the ArcelorMittal group, the world's number one steel producer.
Industrial diversification is a permanent economic policy objective. It has promoted the emergence of
other industrial sectors, such as the materials industries (DuPont de Nemours, Guardian Glass) and
the automotive components industry (Goodyear, Delphi).
Today, more than 90% of Luxembourg's industrial production is destined for export. The industry still
accounts for some 10% in value added (GDP) and employment in the country.
Economy of Luxembourg
The economy of Luxembourg is largely dependent on the banking, steel, and industrial
sectors. Luxembourgers enjoy the second highest per capita gross domestic product in the world (CIA
2007 est.), behind Qatar. Luxembourg is seen as a diversified industrialized nation, contrasting the oil
boom in Qatar, the major monetary source of the southwest Asian state.
Although Luxembourg in tourist literature is aptly called the "Green Heart of Europe", its pastoral land
coexists with a highly industrialized and export-intensive area. Luxembourg's economy is quite similar
to Germany's. Luxembourg enjoys a degree of economic prosperity very rare among industrialized
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.[16] Despite the current crisis,
the 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.[17] 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.[18]
Luxembourg's small but productive agricultural sector is highly subsidized, mainly by the EU and the
government. It employs about 1–3% of the work force. Most farmers are engaged in dairy and meat
production. 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
Luxembourg has efficient road, rail and air transport facilities and services. The road network has been
significantly modernised in recent years with 147 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 railway
station while a new passenger terminal at Luxembourg Airport has recently been opened. There are
plans to introduce trams (first core line operative in end 2017) in the capital and light-rail lines in
adjacent areas within the next few years. 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.

Finding affordable housing in Luxembourg is not always easy. There is no secret about that. But the
phenomenon can be explained.
Thanks to a dynamic labour market, Luxembourg is a land of immigration par excellence, and has been
since the late nineteenth century. Since the 1980s, the resident population has increased by about
With 512,353 inhabitants at the reference date of 1 February 2011, the Grand Duchy of Luxembourg
has exceeded, for the first time in a census, the threshold of half a million inhabitants. Over the years,
this exceptional population growthhas left its traces on the real estate market in Luxembourg, which is
under constant pressure.
In addition, there are new socio-demographic trends to take into consideration. Thus, more and more
residents in this country live alone.
The result is that housing demand is increasing: in both the rental and the sales markets, prices are on
the rise, particularly in municipalities around the edge of the capital city, Luxembourg.
Luxembourg visas and permits
Luxembourg is a member of the Schengen Area. Schengen visa holders are able to move freely
between the states on a short-term basis for up to 90 days, for either the purpose of tourism or
business. With a Schengen visa, it is possible to enter one country and travel freely throughout the
Schengen zone. Passport holders of certain other countries can benefit from the same rule.