Economy overview: A stable and highly profitable economy is characterized by strong growth, low inflation and low unemployment. The industrial sector, which until recently was dominated by iron and steel, is now significantly diversified to include chemicals, rubber and other products. Over the past decade, the growth of the financial sector has more than offset the decline of the steel industry. Service provision, especially in the banking sector, is an increasing part of the economy. Agriculture is dominated by small family farms. The economy depends on foreign workers, who make up 30% of the workforce. Luxembourg has particularly close trade and financial ties with Belgium and the Netherlands and, as a member of the EU, enjoys the benefits of an open European market. See cheeroutdoor.com to know more about Luxembourg Business. GDP: at purchasing power parity – $15.9 billion (2000 est.). Real GDP growth rate: 5.7% (2000 est.). GDP per capita: at purchasing power parity – $36,400 (2000 est.). The composition of GDP by sectors of the economy: agriculture: 1%; industry: 30%; services: 69% (2000 est.). Proportion of the population below the poverty line: no data available. Percentage distribution of household income or consumption: for the poorest 10% of households: n/a; by top 10% of households: no data. Inflation rate at consumer prices: 7.8% (2000 est.). Work force: 248 400 people (of which 70,200 foreigners, mainly from France, Belgium and Germany) (1998 est.). Employment structure: service sector 83.2%, industry 14.3%, agriculture 2.5% (1998 est.). Unemployment rate: 2.7% (2000 est.). Budget: revenues: $5.6 billion; expenditures: $5.6 billion, including capital expenditures – NA (2000 est.). Spheres of economy: banking, iron and steel production, food industry, chemical industry, production of metal products, mechanical engineering, production of automobile tires, glass, aluminum. Growth in industrial production: 7.8% (2000 est.). Electricity generation: 648 million kWh (1999). Sources of electricity generation: fossil fuels: 36.88%; hydropower: 53.09%; nuclear fuel: 0%; others: 10.03% (1999). Electricity consumption: 6.149 billion kWh (1999) Electricity export: 655 million kWh (1999). Electricity import: 6.201 billion kWh (1999) Agricultural products: barley, oats, potatoes, wheat, fruits, grapes; livestock products. Export: $7.6 billion (free on board, 2000) Exports: machinery and equipment, rolled steel, chemicals, rubber products, glass. Export partners: EU 75% (Germany 25%, France 21%, Belgium 13%, UK 8%, Italy 6%, Netherlands 5%), US 4% (1999). Import: $10 billion (S.I.F., 2000). Imports: minerals, metals, foodstuffs, quality consumer goods. Import partners: EU 81% (Belgium 35%, Germany 26%, France 12%, Netherlands 4%), US 9% (1999). External debt: no data. Economic Aid Donor: Official Development Support – $160 million (1999). Currency: Luxembourgish franc; Euro. Currency code: LUF; EUR; note: on January 1, 1999, the EU introduced a common currency, which is now used in some countries; fixed rate – 40.3399 Luxembourgish francs per euro; the euro in 2002 will replace the local currencies in the eurozone countries. Exchange rate: EUR/USD – 1.0659 (January 2001), 1.0854 (2000), 0.9386 (1999); LUF/USD -34.77 (January 1999), 36.299 (1998), 35.774 (1997), 30.962 (1996); note – the Luxembourgish franc is equal to the Belgian franc, which circulates freely in Luxembourg. Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: 314 700 (1999); Mobile cellular phones: 215 741 (2000). Telephone system: highly developed, fully automatic and efficient, predominantly underground cables; domestic: nationwide cellular telephone system; underground cables; international: uses 3 channels of the TAT-6 coaxial submarine cable (Europe-North America). Broadcast stations: AM – 2, FM – 9, shortwave – 2 (1999). Radio receivers: 285,000 (1997). Television broadcast stations: 5 (1999). Televisions: 285,000 (1998 est.) Internet country code: lu Internet service providers: 8 (2000). Number of users: 86,000 (1999).
Transport
Transport Railways: total: 274 km; standard gauge: 21A km (1.435 m gauge) (242 km electrified; 178 km dual gauge) (1998). Roads: total: 5,166 km; paved: 5,166 km (including 118 km of expressways); unpaved: 0 km (1998 est.). Waterways: 37 km; Moselle river. Pipelines: for oil products – 48 km. Ports and harbours: Mertert. Merchant navy: in total: 50 ships (of 1,000 tons displacement or more) with a total displacement of 988,450 gross register tons / 1,313,498 long tons of gross tonnage; ships of various types: dry cargo ships – 2, chemical tankers – 11, container ships – 2, liquefied gas tankers – 18, passenger ships – 4, oil tankers – 6, ferries – 7; note: including foreign vessels registered here for flag of convenience reasons: Belgium 4 (2000 est.). Airports: 2 (2000 est.). Airports with paved runways: total: 1; over 3,047 m: 1 (2000 est.). Airports with unpaved runways: total: 1; less than 914 m: 1 (2000 est.). Helipads: 1 (2000 est.).
Armed forces
Branches of the armed forces: army; note – the government disbanded the gendarmerie. Enlistment age: 19 years old. Total Military Manpower: Male 15 to 49: 112,714 (2001 est.). Eligible for military service: men aged 15 to 49: 92,817 (2001 est.). Number of persons reaching military age each year: men: 2,565 (2001 est.). Military spending in dollar terms: $131 million (1998) Military spending as part of GDP: 1% (1998).
