Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839 but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both world wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union), and in 1999 it joined the euro currency area.

Western Europe, between France and Germany

slightly smaller than Rhode Island

modified continental with mild winters, cool summers

mostly gently rolling uplands with broad, shallow valleys; uplands to slightly mountainous in the north; steep slope down to Moselle flood plain in the southeast

iron ore (no longer exploited), arable land

air and water pollution in urban areas, soil pollution of farmland

landlocked; the only Grand Duchy in the world

Luxembourger 63.1%, Portuguese 13.3%, French 4.5%, Italian 4.3%, German 2.3%, other EU 7.3%, other 5.2% (2000 census)

Luxembourgish (national language), German (administrative language), French (administrative language)

Roman Catholic 87%, other (includes Protestant, Jewish, and Muslim) 13% (2000)

509,074 (July 2012 est.)

11.7 births/1,000 population (2012 est.)

8.5 deaths/1,000 population (July 2012 est.)

8.15 migrant(s)/1,000 population (2012 est.)

LUXEMBOURG (capital) 90,000 (2009)

20 deaths/100,000 live births (2010)

1.77 children born/woman (2012 est.)

2.862 physicians/1,000 population (2007)

5.57 beds/1,000 population (2008)

urban: 100% of population

rural: 100% of population

total: 100% of population

fewer than 1,000 (2009 est.)

fewer than 100 (2009 est.)

constitutional monarchy

3 districts; Diekirch, Grevenmacher, Luxembourg

1839 (from the Netherlands)

National Day (Birthday of Grand Duchess Charlotte) 23 June; note - the actual date of birth was 23 January 1896, but the festivities were shifted by five months to allow observance during a more favorable time of year

17 October 1868; occasional revisions

accepts compulsory ICJ jurisdiction; accepts ICCt jurisdiction

18 years of age; universal and compulsory

unicameral Chamber of Deputies or Chambre des Deputes (60 seats; members elected by popular vote to serve five-year terms)

Constitutional Court; judicial courts and tribunals (Superior Court of Justice includes Court of Appeal and Court of Cassation, 2 district tribunals, 3 lesser tribunals); administrative courts and tribunals (State Prosecutor's Office, Administrative Tribunal and Administrative Court); judges for all courts are appointed for life by the monarch

Alternative Democratic Reform Party or ADR [Fernand KARTHEISER]; Christian Social People's Party or CSV [Marc SPAUTZ]; dei Lenk/la Gauche (the Left); Democratic Party or DP [Claude MEISCH]; Green Party [Francois BAUSCH]; Luxembourg Socialist Workers' Party or LSAP [Lucien LUX]; other minor parties

ABBL (bankers' association); ALEBA (financial sector trade union); Centrale Paysanne (federation of agricultural producers); CEP (professional sector chamber); CGFP (trade union representing civil service); Chambre de Commerce (Chamber of Commerce); Chambre des Metiers (Chamber of Artisans); FEDIL (federation of industrialists); Greenpeace (environment protection); LCGP (center-right trade union); Mouvement Ecologique (protection of ecology); OGBL (center-left trade union)

ADB (nonregional member), Australia Group, Benelux, BIS, CD, CE, EAPC, EBRD, ECB, EIB, EMU, ESA, EU, FAO, FATF, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IEA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NATO, NEA, NSG, OAS (observer), OECD, OIF, OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNRWA, UPU, WCO, WHO, WIPO, WMO, WTO, ZC

three equal horizontal bands of red (top), white, and light blue; similar to the flag of the Netherlands, which uses a darker blue and is shorter; the coloring is derived from the Grand Duke's coat of arms (a red lion on a white and blue striped field)

This small, stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - has historically featured solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector, which now accounts for about 28% of GDP, has more than compensated for the decline in steel. Most banks are foreign-owned and have extensive foreign dealings, but Luxembourg has lost some of its advantages as a tax haven because of OECD and EU pressure. The economy depends on foreign and cross-border workers for about 60% of its labor force. Luxembourg, like all EU members, suffered from the global economic crisis that began in late 2008, but unemployment has trended below the EU average. Following strong expansion from 2004 to 2007, Luxembourg's economy contracted 3.6% in 2009, but rebounded in 2010-11 before slowing again in 2012. The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks among the highest in the world, and is the highest in the euro zone. Turmoil in the world financial markets and lower global demand during 2008-09 prompted the government to inject capital into the banking sector and implement stimulus measures to boost the economy. Government stimulus measures and support for the banking sector, however, led to a 5% government budget deficit in 2009. Nevertheless, the deficit was cut to 1.1% in 2011 and 0.9% in 2012. Even during the financial crisis and recovery, Luxembourg retained the highest current account surplus as a share of GDP in the euro zone, owing largely to their strength in financial services. Public debt remains among the lowest of the region although it has more than doubled since 2007 as percentage of GDP. Luxembourg's economy, while stabile, grew slowly in 2012 due to ongoing weak growth in the euro area. Authorities have strengthened supervision of domestic banks because of their exposure to the activities of foreign banks.

$42.19 billion (2012 est.)

$42.12 billion (2011 est.)

$41.47 billion (2010 est.)

$55.29 billion (2012 est.)

21.3% of GDP (2012 est.)

41.7% of GDP (2012 est.)

-0.9% of GDP (2012 est.)

18.4% of GDP (2012 est.)

17.4% of GDP (2011 est.)

1.5% (31 December 2012)

1.75% (31 December 2010)

$81.55 billion (31 December 2012 est.)

$87.14 billion (31 December 2011 est.)

$229.9 billion (31 December 2012 est.)

$229.9 billion (31 December 2011 est.)

$395.1 billion (31 December 2009 est.)

$369.6 billion (31 December 2008 est.)

$67.63 billion (31 December 2011)

$101.1 billion (31 December 2010)

$105.6 billion (31 December 2009)

grapes, barley, oats, potatoes, wheat, fruits; dairy and livestock products

$500 million (2012 est.)

$4.185 billion (2011 est.)

$15.5 billion (2012 est.)

$19.22 billion (2011 est.)

machinery and equipment, steel products, chemicals, rubber products, glass

Germany 22.2%, France 15.6%, Belgium 13.2%, UK 7.3%, Italy 5.4%, Switzerland 4.3%, Netherlands 4.1% (2011)

$25.08 billion (2012 est.)

$26.54 billion (2011 est.)

minerals, metals, foodstuffs, quality consumer goods

Belgium 30.3%, Germany 26%, France 10.8%, China 6.9%, Netherlands 5.8%, US 5.2% (2011)

$1.014 billion (31 December 2011 est.)

$849 million (2010 est.)

$2.146 trillion (30 June 2011)

$1.892 trillion (30 June 2010)

$NA (31 December 2009 est.)

$11.21 billion (31 December 2008 est.)

euros (EUR) per US dollar -

2.49 billion kWh (2010 est.)

5.973 billion kWh (2009 est.)

3.216 billion kWh (2010 est.)

7.28 billion kWh (2010 est.)

1.702 million kW (2009 est.)

28.4% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

2% of total installed capacity (2009 est.)

5% of total installed capacity (2009 est.)

0 bbl/day (2011 est.)

0 bbl/day (2009 est.)

0 bbl (1 January 2012 est.)

0 bbl/day (2009 est.)

61,380 bbl/day (2011 est.)

686.3 bbl/day (2009 est.)

51,930 bbl/day (2009 est.)

1.183 billion cu m (2011 est.)

0 cu m (1 January 2012 est.)

10.8 million Mt (2010 est.)

Luxembourg has a long tradition of operating radio and TV services to pan-European audiences and is home to Europe's largest privately-owned broadcast media group, the RTL group, which operates 46 TV stations and 29 radio stations in Europe; also home to Europe's largest satellite operator, Societe Europeenne des Satellites (SES); domestically, the RTL group operates TV and radio networks; other domestic private radio and TV operators and French and German stations available; satellite and cable TV services available (2008)

gas 142 km; refined products 27 km (2010)

37 km (on Moselle River) (2010)

18-24 years of age for male and female voluntary military service; no conscription; Luxembourg citizen or EU citizen with 3-year residence in Luxembourg (2012)

0.9% of GDP (2005 est.)