Small and competitive country, Luxembourg has a lot of similarities with Belgium. This explain the very high level of collaboration between the two countries.
For more than two decades, the Luxembourg economy has consistently performed at the highest levels, with strong growth, high international trade surplus, low unemployment and low inflation in a stable, innovative environment for business and consumers alike.
Luxembourg’s relative outperformance, even during economic downturns, derives from several factors and policies. Diversification has been a major priority since the 1960s, when Luxembourg began to move away from its strong reliance on the steel industry into high tech manufacturing and banking. Today’s economy is a balanced blend of financial services, high value-added manufacturing, retail and e-commerce, communications and logistics services, with a focus on exporting goods and services to and throughout the European Union and beyond.
Luxembourg is expert at importing knowledge: both via long term immigrants and cross border commuters. Of the near half a million people living in the country, 44% are non-Luxembourgish and of the 360,000 people working here, 42% non-resident commuters. Overall, this adds up to two-thirds of the workforce originating from outside the country.