Economy of Luxembourg

The economy of the Luxembourg mainly depends on the banking environment and that of the Acier. In 2005,46% of the gross domestic product of the country come from the finance departments. One counts more than 200 banks on the territory of the Grand Duchy. The Bank secrecy is protected by the penal code from the country. The Luxembourgers enjoy an high level of life. This high level of life results in a high cost of living. The rents are expensive, as well as the consumables current.

Statute and creation of company

The legal forms of companies accepted in Luxembourg are the following ones The recording of a new business is done near the Administration of the recording and the fields

public limit companies, limited liability companies, limited partnerships with share capitals
partnerships, limited partnerships, civil society, cooperative society

Industries

Steel

Banks

Luxembourg counted 217 banks in 2000. For 440.000 inhabitants, it represented in 1999 a market cap of 554 billion dollars US, that is to say more than Honk Kong, twice as much as Singapore, 400 times more than the Bahamas.

It also counts many financial institutions like the clearing house Clearstream, in the past Cedel International. Nearly two thousand billion dollars US are capitalized in its funds of investment.

Telecommunications

Agriculture

Overseas investments

Social climate

Luxembourg profits from a rather calm social climate, and this since 1930. The majority of the industrial workers are associated with the political party dominating.

The foreign investors often quote the workers of Luxembourg like the main reason to be installed on the territory. In 2005, unemployment rate was of 4.5% of the active population resident.

During the first year of unemployment, the unemployed is paid by the ADEM and receives either 1500 euros rough or 80% of his last wages. At the end of this year, if it did not find employment it does not profit any more an unemployment pay of the ADEM but the guaranteed minimum wages or RMG granted by the Solidarity funds, two institutes depending on the Ministry for the Family.

The Luxembourg RMG granted after the first year of unemployment rises in 2007 rough with approximately 1300 euros for one insulated without child, that is to say, deductions of taxes taken into account and increased by a participation in the rent, with approximately 1200 euros Net. Contrary to its French or Belgian neighbor, Luxembourg takes the taxes with the source but very resident can make an income tax return if it wishes to deduce certain expenses or premiums.

Statistics

GDP: current prices and exchange spleens - $25.8 billion (2003; OECD) (97th)

GDP - growth spleen: 4.5% (2004) 2.9% (2003) 2.5% (2002), 1.5% (2001)

GDP - per head: purchasing power parity - $49,100 (2002; OECD) (1st)

GDP - composition by sector:
agriculture: 1%
industry: 23%
services: 76% (1999 are.)

Population below poverty line: NA%

Household income gold consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation misses (to consume prices): 2.5% (2005)

Labor forces: 236,400 (one-third off ploughing forces is foreign workers, mostly from Portugal, Italy, France, Belgium, and Germany) (1998 are.)

Labor forces - by occupation: services 83.2%, industry 14.3%, agriculture 2.5% (1998 are.)

Unemployment misses: 4.7% (2005)

Budget: (2000 are.)
returned: $4.73 billion
expenditures: $4.71 capital billion, including expenditures off $NA

Industries: banking, iron and steel, food processing, chemicals, metal products, engineering, cars, knell, aluminum

Industrial production growth spleen: 1.6% (1999 are.)

Electricity - production: 382 GWh (1998)

Electricity - production by source:
fossil fuel: 60.73%
hydro : 24.86%
nuclear: 0%
other: 14.41% (1998)

Electricity - consumption: 5.856 TWh (1998)

Electricity - exports: 900 GWh (1998)

Electricity - imports: 6.4 TWh (1998)

Agriculture - products: barley, oats, potatoes, wheat, fruits, wine bunches; livestock products

Exports: $7.5 billion (f.o.b., 1998)

Exports - commodities: finished steel products, chemicals, rubber products, knell, aluminum, other industrial products

Exports - partners: Germany 33%, France 20%, Belgium 12%, the U.K. 6%, US 5%, Netherlands 4% (1998)

Imports: $9.6 billion (c.i.f., 1998)

Imports - commodities: minerals, metals, foodstuffs, quality to consume goods

Imports - partners: Belgium 36%, Germany 27%, France 12%, Netherlands 5%, US 4% (1998)

Debt - external: $NA

Economic aid - donor: ODA, $160 million (1999)

Currency: 1 Euro = 100 hundreds

Exchange spleens: euros per US$1 - 0.78 (April 2005), 0.82 (March 2004), 0.9867 (January 2000), 0.9386 (1999);

note: There 1 January 1999, the HAVE introduced is common currency, the euro, that is equivalent to 40.3399 Luxembourgish francs per euro; the local euro has replaced the currency in consenting countries for all transactions in 2002.

Financial year: year calendar

Bonds political power and economic capacity

In Luxembourg, the Minister for Justice is also that of Finances.

the prosecutor anti-laundering is a former business lawyer whose activity consisted in domiciling wandering companies.

Gaston Thorn, old Luxembourg Prime Minister, chaired the BIL, international Banque of Luxembourg, become Dexia.

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