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.

Geographic coordinates: 49 45 N 6 10 E

Area
Rank: 179
Comparative: slightly smaller than Rhode Island

Coastline: 0 km (landlocked)

Maritime claims: none (landlocked)

Climate: modified continental with mild winters cool summers

Terrain: mostly gently rolling uplands with broad shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle flood plain in the southeast

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

Irrigated land: NA

Total renewable water resources: 1.6 km³ (2005)

Natural hazards: NA

Geography
Note: landlocked; the only Grand Duchy in the world

Population: 509,074 (July 2012 est.)
Rank: 173
Growth rate: 1.135% (2012 est.)
Growth rate rank: 103
Below poverty line: NA%

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)

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

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

Population growth rate: 1.135% (2012 est.)
Rank: 103

Birth rate: 11.7 births/1000 population (2012 est.)
Rank: 166

Death rate: 8.5 deaths/1000 population (July 2012 est.)
Rank: 82

Net migration rate: 8.15 migrant(s)/1000 population (2012 est.)
Rank: 14

Environment
Current issues: air and water pollution in urban areas soil pollution of farmland

Infant mortality rate
Rank: 192

Life expectancy at birth
Rank: 37

Total fertility rate: 1.77 children born/woman (2012 est.)
Rank: 163

Physicians density: 2.862 physicians/1000 population (2007)

Hospital bed density: 5.57 beds/1000 population (2008)

Sanitation facility access:

Hivaids
Adult prevalence rate: 0.3% (2009 est.)
Adult prevalence rate rank: 80
People living with hivaids: fewer than 1000 (2009 est.)
People living with hivaids rank: 145
Deaths: fewer than 100 (2009 est.)
Deaths rank: 119

Education expenditures: NA

Government type: constitutional monarchy

Administrative divisions: 3 districts; Diekirch Grevenmacher Luxembourg

Independence: 1839 (from the Netherlands)

National holiday: National Day (Birthday of Grand Duchess Charlotte) 23 June; note - the actual date of birth was 23 January 1896 but the festivities were shifted by five months to allow observance during a more favorable time of year

Constitution: 17 October 1868; occasional revisions

Legal system: civil law system

International law organization participation: accepts compulsory ICJ jurisdiction; accepts ICCt jurisdiction

Suffrage: 18 years of age; universal and compulsory

Legislative branch: unicameral Chamber of Deputies or Chambre des Deputes (60 seats; members elected by popular vote to serve five-year terms)

Judicial branch: Constitutional Court; judicial courts and tribunals (Superior Court of Justice includes Court of Appeal and Court of Cassation 2 district tribunals 3 lesser tribunals); administrative courts and tribunals (State Prosecutor's Office Administrative Tribunal and Administrative Court); judges for all courts are appointed for life by the monarch

Political parties and leaders: Alternative Democratic Reform Party or ADR [Fernand KARTHEISER]; Christian Social People's Party or CSV [Marc SPAUTZ]; dei Lenk/la Gauche (the Left); Democratic Party or DP [Claude MEISCH]; Green Party [Francois BAUSCH]; Luxembourg Socialist Workers' Party or LSAP [Lucien LUX]; other minor parties

International organization participation: ADB (nonregional member) Australia Group Benelux BIS CD CE EAPC EBRD ECB EIB EMU ESA EU FAO FATF IAEA IBRD ICAO ICC (national committees) ICRM IDA IEA IFAD IFC IFRCS ILO IMF IMO Interpol IOC IOM IPU ISO ITSO ITU ITUC (NGOs) MIGA NATO NEA NSG OAS (observer) OECD OIF OPCW OSCE PCA Schengen Convention UN UNCTAD UNESCO UNHCR UNIDO UNIFIL UNRWA UPU WCO WHO WIPO WMO WTO ZC

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)

National symbols: lion

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 but Luxembourg has lost some of its advantages as a tax haven because of OECD and EU pressure. 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 but unemployment has trended below the EU average. Following strong expansion from 2004 to 2007 Luxembourg's economy contracted 3.6% in 2009 but rebounded in 2010-11 before slowing again in 2012. The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks among the highest in the world and is the highest in the euro zone. 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 5% government budget deficit in 2009. Nevertheless the deficit was cut to 1.1% in 2011 and 0.9% in 2012. Even during the financial crisis and recovery Luxembourg retained the highest current account surplus as a share of GDP in the euro zone owing largely to their strength in financial services. Public debt remains among the lowest of the region although it has more than doubled since 2007 as percentage of GDP. Luxembourg's economy while stabile grew slowly in 2012 due to ongoing weak growth in the euro area. Authorities have strengthened supervision of domestic banks because of their exposure to the activities of foreign banks.

Real gdp purchasing power parity:
Rank: 100

Real gdp growth rate:
Rank: 181

Real gdp per capita:
Rank: 3

Agriculture products: grapes barley oats potatoes wheat fruits; dairy and livestock products

Industrial production growth rate: 6.2% (2011 est.)
Rank: 52

Labor force: 208,200
Rank: 168

Unemployment rate: 5.7% (2011 est.)
Rank: 47

Population below poverty line: NA%

Distribution of family income gini index: 26 (2005)
Rank: 130

Budget
Surplus or deficit: -0.9% of GDP (2012 est.)
Surplus or deficit rank: 56

Taxes and other revenues: 41.7% of GDP (2012 est.)
Rank: 45

Public debt: 17.4% of GDP (2011 est.)
Rank: 129

Fiscal year: calendar year

Inflation rate consumer prices: 3.4% (2011 est.)
Rank: 58

Central bank discount rate: 1.75% (31 December 2010)
Rank: 129

Stock of narrow money: $87.14 billion (31 December 2011 est.)
Rank: 40

Stock of broad money: $229.9 billion (31 December 2011 est.)
Rank: 39

Stock of domestic credit: $369.6 billion (31 December 2008 est.)
Rank: 30

Market value of publicly traded shares:
Rank: 43

Current account balance: $4.185 billion (2011 est.)
Rank: 47

Exports: $19.22 billion (2011 est.)
Rank: 80
Commodities: machinery and equipment steel products chemicals rubber products glass
Partners: Germany 22.2% France 15.6% Belgium 13.2% UK 7.3% Italy 5.4% Switzerland 4.3% Netherlands 4.1% (2011)

Imports: $26.54 billion (2011 est.)
Rank: 67
Commodities: minerals metals foodstuffs quality consumer goods
Partners: Belgium 30.3% Germany 26% France 10.8% China 6.9% Netherlands 5.8% US 5.2% (2011)

Reserves of foreign exchange and gold: $849 million (2010 est.)
Rank: 135

Debt external: $1.892 trillion (30 June 2010)
Rank: 11

Stock of direct foreign investment at home:

Stock of direct foreign investment abroad: $N/A

Exchange rates:

Electricity
Production: 2.49 billion kWh (2010 est.)
Production rank: 133
Consumption: 5.973 billion kWh (2009 est.)
Consumption rank: 106
Exports: 3.216 billion kWh (2010 est.)
Exports rank: 36
Imports: 7.28 billion kWh (2010 est.)
Imports rank: 32
Installed generating capacity: 1.702 million kW (2009 est.)
Installed generating capacity rank: 107
Generation sources fossil fuels: 28.4% of total installed capacity (2009 est.)
Generation sources fossil fuels rank: 181
Generation sources nuclear: 0% of total installed capacity (2009 est.)
Generation sources nuclear rank: 128
Generation sources hydroelectricity: 2% of total installed capacity (2009 est.)
Generation sources hydroelectricity rank: 136
Generation sources other renewable sources: 5% of total installed capacity (2009 est.)
Generation sources other renewable sources rank: 35

Petroleum
Petroleum total petroleum production: 0 bbl/day (2011 est.)
Petroleum total petroleum production rank: 158
Crude oil exports: 0 bbl/day (2009 est.)
Crude oil exports rank: 145
Crude oil imports: 0 bbl/day (2009 est.)
Crude oil imports rank: 210
Crude oil proven reserves: 0 bbl (1 January 2012 est.)
Crude oil proven reserves rank: 157

Refined petroleum
Products production: 0 bbl/day (2009 est.)
Products production rank: 168
Products consumption: 61,380 bbl/day (2011 est.)
Products consumption rank: 95
Products exports: 686.3 bbl/day (2009 est.)
Products exports rank: 116
Products imports: 51,930 bbl/day (2009 est.)
Products imports rank: 68

Natural gas
Production: 0 m³ (2010 est.)
Production rank: 157
Consumption: 1.183 billion m³ (2011 est.)
Consumption rank: 88
Exports: 0 m³ (2011 est.)
Exports rank: 107
Imports: 1.183 billion m³ (2011 est.)
Imports rank: 58
Proven reserves: 0 m³ (1 January 2012 est.)
Proven reserves rank: 162

Carbon dioxide emissions
From consumption of energy: 10.8 million Mt (2010 est.)
From consumption of energy rank: 99

Telephones
Main lines in use: 279,100 (2011)
Main lines in use rank: 121
Mobile cellular: 765,000 (2011)
Mobile cellular rank: 159

Broadcast media: Luxembourg has a long tradition of operating radio and TV services to pan-European audiences and is home to Europe's largest privately-owned broadcast media group the RTL group which operates 46 TV stations and 29 radio stations in Europe; also home to Europe's largest satellite operator Societe Europeenne des Satellites (SES); domestically the RTL group operates TV and radio networks; other domestic private radio and TV operators and French and German stations available; satellite and cable TV services available (2008)

Internet
Country code: .lu
Hosts: 250,900 (2012)
Hosts rank: 68
Users: 424,500 (2009)
Users rank: 121

Military expenditures: 0.9% of GDP (2005 est.)
Rank: 143

Military service age and obligation: 18-24 years of age for male and female voluntary military service; no conscription; Luxembourg citizen or EU citizen with 3-year residence in Luxembourg (2012)

Airports: 2 (2012)
Rank: 205

Heliports: 1 (2012)

Pipelines: gas 142 km; refined products 27 km (2010)

Railways
Rank: 123

Roadways
Rank: 152

Waterways: 37 km (on Moselle River) (2010)
Rank: 105

Merchant marine
Rank: 71

Ports and terminals: Mertert

Disputes international: none