Luxembourg
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About Luxembourg
Luxembourg is a country located in Western Europe, between France and Germany, covering an area of approximately 2,586 square kilometers. As of 2024, Luxembourg has a population of about 671,000, with Luxembourgish, French, and German as official languages, alongside Portuguese and English widely spoken. The country features mostly gently rolling uplands with broad, shallow valleys, with a modified continental climate of mild winters and cool summers. Luxembourg City serves as the capital, and the government operates as a constitutional monarchy.
Luxembourg has one of the highest GDP per capita in the world at $128,200 and a GDP of $93.20 billion, driven by banking and financial services, construction, real estate, iron and steel, information technology, telecommunications, cargo transportation, chemicals, engineering, tires, glass, aluminum, tourism, and biotechnology. Key agricultural products include milk, wheat, barley, triticale, potatoes, and grapes, while natural resources include iron ore and arable land. The unemployment rate is 6.3% as of 2025. Luxembourg is a global financial center with a highly capitalized banking sector, though it faces challenges including pension-system sustainability and energy price volatility.
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Country Name
conventional short form: Luxembourg
local long form: Grand Duché de Luxembourg
local short form: Luxembourg
etymology: probably derived from an early Celtic or Germanic form of the name, Lucilinburhuc, that was thought to mean "little fortress;" the name first referred to the city and was later used for the country
Economy
Economic Overview
high-income EU and eurozone economy; global, highly capitalized banking sector; one of highest GDP-per-capita countries; strengthened domestic demand and lower interest rates contributing to economic growth; challenges include pension-system sustainability, labor-market dynamics, and energy price volatility
