According to allcitypopulation, Luxembourg is a small landlocked country located in Western Europe, bordered by Belgium, France, and Germany. It is the second smallest country in the European Union with a total land area of 2,586 square km and a population of 613,894 people. Luxembourg has a temperate climate with warm summers and mild winters. The terrain is mostly gently rolling hills with some forests and meadows in the north and east. According to Petwithsupplies, the capital city of Luxembourg is Luxembourg City with a population of 116,000 (2018). Other major cities include Esch-sur-Alzette with a population of 35,000, Differdange with a population of 27,000, Dudelange with a population of 21,000 (2018).
The economy of Luxembourg is one of the most stable economies worldwide. It has a high per capita income which ranks among the highest in Europe. The main industries are finance, banking, insurance, information technology services, steel production and agriculture. Banking accounts for about 35% of GDP while insurance and other financial services account for another 15%. Luxembourg also has many international companies that have their headquarters in the country such as Amazon, Microsoft and Skype. Agriculture is still important to Luxembourg’s economy with dairy products being one of its main exports along with wine production. Tourism is also an important part of the economy accounting for about 5% to 8% of GDP each year.
Foreign Trade of Luxembourg
Luxembourg is a small country with an open economy and has become an important trading hub in Europe. Its main trading partners are Germany, France, Belgium, the Netherlands and the United Kingdom. Luxembourg’s exports are mostly machinery and equipment, chemicals, rubber and plastic products and iron and steel products. Its imports include machinery and equipment, chemicals, foodstuffs and minerals. The country also has a large number of international companies that have their headquarters in Luxembourg such as Amazon, Microsoft, Skype.
The value of Luxembourg’s exports totaled US$19 billion in 2019 while imports were US$17 billion in the same year. Luxembourg’s main export markets are Germany (25%), France (18%) and Belgium (14%). Its main import markets are Germany (24%), France (18%) and Belgium (14%). The balance of trade for Luxembourg was positive at US$2 billion in 2019 due to its high exports relative to its imports.
Luxembourg is part of the European Union Common Market which allows free trade with other members of the European Union. It is also a member of the World Trade Organization which facilitates global trade by setting rules for international commerce between countries.
As a result of its open economy policies, Luxembourg has become an important financial center in Europe offering tax advantages to foreign companies that invest there. This along with its strategic location on the crossroads between Europe’s major economic centers has made it an attractive destination for foreign investment.
Major Trading Partners of Luxembourg
Luxembourg is a small country with an open economy and has become an important trading hub in Europe. Its main trading partners are Germany, France, Belgium, the Netherlands and the United Kingdom.
Germany is Luxembourg’s largest trading partner with 25% of its exports and 24% of its imports going to or coming from Germany. The main products exported to Germany are machinery and equipment, chemicals, rubber and plastic products and iron and steel products. Main imports from Germany include machinery and equipment, chemicals, foodstuffs and minerals.
France is Luxembourg’s second largest trading partner accounting for 18% of its exports and 18% of its imports. The main products exported to France are machinery and equipment, chemicals, rubber and plastic products as well as iron and steel products. Main imports from France include machinery and equipment, chemicals, foodstuffs as well as minerals.
Belgium is the third largest trading partner for Luxembourg accounting for 14% of its exports as well as 14% of its imports. The main goods exported to Belgium are machinery and equipment, chemicals, rubber or plastic products as well as iron or steel products. Main imports from Belgium include machinery or equipment; chemicals; foodstuffs; minerals; textiles; clothing; furniture; paper or paperboard; printed books or manuscripts; etc.
The Netherlands is the fourth largest trading partner for Luxembourg accounting for 8% of its exports while 4% of its imports come from the Netherlands. The main goods exported to the Netherlands are machinery or equipment; chemicals; rubber or plastic products; iron or steel products etc., while main imports from the Netherlands include machinery or equipment;chemicals;foodstuffs;minerals;textiles;clothing;furniture etc.,
The United Kingdom is the fifth largest trading partner for Luxembourg with 6 %of its exports going to the UK while 4 %of its imports come from there. The main goods exported to the UK are mainly machinery & equipment, chemicals, rubber &plastic materials, iron &steel materials etc., while main imports from UK include mainly machinery & equipment, chemicals, foodstuffs, minerals etc.,
Major Imports and Exports of Luxembourg
Luxembourg is a small country in Europe that is heavily dependent on international trade. Its exports and imports account for around 50% of its GDP. This is because the country has a small domestic market and cannot satisfy its own needs. As such, it relies on foreign markets to purchase and export goods.
The main exports from Luxembourg are machinery and equipment, chemicals, rubber and plastic products, iron and steel products, foodstuffs as well as minerals. These products are exported to countries around the world including Germany, France, Belgium, the Netherlands, UK and other countries in Europe as well as the United States. Machinery and equipment make up the majority of exports with nearly 50% of total exports in this category. Chemicals follow closely behind at approximately 15% of total exports while rubber and plastic products come in third at 10%. Iron and steel products account for around 8%, foodstuffs at 5%, minerals at 4%, textiles at 2%, furniture at 2%, paper or paperboard 1%, printed books or manuscripts 1%, clothing 1%, base metals 0.5%.
In terms of imports into Luxembourg, the main categories include machinery and equipment (27%), chemicals (17%), foodstuffs (12%), minerals (10%), textiles (7%), clothing (6%), furniture (4%), paper or paperboard (3%), printed books or manuscripts (2%) base metals (1%) as well as other items making up the remaining 16%. Germany is by far Luxembourg’s largest trading partner with 28% of its exports going to Germany while 24% comes from there. France is second with 18% of both imports and exports coming from there while Belgium comes third with 14% both ways. The Netherlands follows closely behind with 8% of exports going there while 4 % comes from there while UK rounds off the top five trading partners with 6 %going there while 4 %comes from them.
Overall, Luxembourg’s economy is heavily reliant on international trade for both its imports and exports. The main categories for both imports into Luxembourg as well as those exported out include machinery & equipment, chemicals, rubber &plastic materials, iron &steel materials, foodstuffs, minerals etc., all playing an important role in driving economic growth within Luxembourg.