Luxembourg's Economy

Luxembourg's Economy

    Luxembourg, a member of the European Union, is a relatively small country in the west of Europe landlocked by Belgium, France, and Germany, who are Luxembourg’s top three trade partners. The government system is a constitutional monarchy. The mixed economy of Luxembourg consists of high levels of openness and entrepreneurial activity amalgamated with centralised economic planning and government regulation.

    Luxembourg has documented to show a low inflation rate, low unemployment and stable growth. The real GDP is $60.13 billion. The real GDP has trended in an upward sloping pattern since 1990. Luxembourg is the second wealthiest country in the world, and has an amazing standard of living.The economy largely depends on banking, steel and industrial machinery. However in 1970s, the steel industry declined and the government resolved this problem by diversifying and putting significant efforts into promoting the financial sector.In 1980s Luxembourg became one of the world’s first banking centers. Today, 9,000 foreign companies are located in Luxembourg, and the European Investment Bank,making Luxembourg the main financial institution of the European Union.

Bibliography:

http://globaledge.msu.edu/countries/luxembourg
http://www.indexmundi.com/luxembourg/economy overview.html

https://en.wikipedia.org/wiki/Economy_of_Luxembourg

http://globaledge.msu.edu/countries/luxembourg/economy

http://www.nationsencyclopedia.com/economies/Europe/Luxembourg-OVERVIEW-OF-ECONOMY.html

http://www.heritage.org/index/country/luxembourg