Luxembourg Facts

by countryaah · Published June 3, 2019 · Updated December 12, 2024

Luxembourg, State of Western Europe; 2 586 km², 608 000 residents (2019).Luxembourg is located between Belgium, France and Germany. It is one of the Benelux countries and original member of the EU. The capital is Luxembourg (119,200 residents, 2019).

Country facts

Grand Duchy of Luxembourg (French) Grand Duchy of Luxembourg (
Luxembourg) Grand Duchy of Luxembourg
(German) /
Grand Duchy of Luxembourg
Country abbreviation: LU (L)
Area: 2 586 km²
Population (2019): 608,000 residents
Capital: Luxembourg
Main languages: French, Luxembourg, German
State: Monarchy
Head of State: Henri (Grand Duke)
Head of Government: Xavier Bettel
Per capita GDP (2018): US $ 114,340
GNI per capita (2018): US $ 69 420
Currency unit: euro
Currency code: EUR
Country number (telephony): 352
Internet domain name: lu
Time difference compared to Sweden: 0
National Day: June 23 (Grand Duchess Charlotte’s Birthday)

Nature

Land use: forest (34%), agricultural land (51%), other (15%)
Highest mountain: Buurgplaatz (559 m asl)

Population

Population density (2019): 235 residents per km²
Natural population growth (2019): 0.3%; birth rate 10 ‰, death rate 7 ‰
Age structure (2019): 0-14 years (16%), 15-64 (70%), 65- (14%)
Average life expectancy (2019): men 80 years, women 85 years
Infant mortality (2019): 4 per 1,000 live births
Population forecast 2050: 800,000 residents
HDI (2017): 0.904 (place 21 of 189)
Urbanization rate (2019): 91%
Most popular cities (2019): Luxembourg (119,200 residents), Esch-sur-Alzette (35,400)

Business

Industry’s contribution to GDP (2016): agriculture (0%), industry (11%), service (89%)
Exports (2016): US $ 17,100 million
Main export products: machinery, steel and metal products, chemicals
Main exporting countries: Germany, Belgium, France
Imports (2016): US $ 18 330 million
Main import products: minerals, food, capital goods
Main importing countries: Belgium, Germany, China

Communications

Railway network (2014): 275 km
Road network (2011): 2 900 km
Internet users per 100 residents (2016): 97

Geography

Location and Borders

Luxembourg is a small, landlocked country situated in Western Europe. It shares borders with Belgium to the west and north, Germany to the east, and France to the south. Covering an area of approximately 2,586 square kilometers (998 square miles), Luxembourg is one of the smallest countries in Europe, both in terms of land area and population. Despite its size, Luxembourg plays a significant role in European and global affairs due to its economic power, strategic location, and political influence within the European Union.

Luxembourg’s geographical location has made it a crossroads of European trade and culture for centuries. It has a central position on the European continent, which has historically made it a key point for both military and economic exchanges. The country’s proximity to Germany, Belgium, and France has also contributed to its diverse cultural influences and multilingual population.

Physical Features

Luxembourg’s landscape is largely characterized by rolling hills, valleys, and forests. It is situated in the Ardennes region, which extends from Belgium and northern France into Luxembourg, giving the country a relatively rugged terrain. The northern part of Luxembourg is the most mountainous, with hills and ridges, while the southern and western regions are flatter and more suited for agricultural use.

The country’s natural environment is rich in rivers and streams, including the Alzette, which flows through Luxembourg City, and the Moselle River, which forms part of Luxembourg’s border with Germany. The Moselle Valley is an important region for viticulture, with the river providing a scenic and fertile backdrop for wine production. Luxembourg has a relatively low population density, and much of the country is covered by forests and agricultural land, providing a peaceful and picturesque environment for residents and visitors alike.

Luxembourg’s protected areas, including nature reserves and parks, are vital to preserving the country’s biodiversity. These areas support wildlife, including species such as roe deer, wild boar, and various bird species, and are popular for hiking and outdoor activities.

Climate

Luxembourg has a temperate maritime climate, characterized by moderate temperatures and relatively high rainfall throughout the year. The climate is influenced by the nearby Atlantic Ocean, with mild winters and cool summers. Average winter temperatures range from 0°C to 5°C (32°F to 41°F), while summer temperatures typically range from 15°C to 25°C (59°F to 77°F). The country experiences four distinct seasons, with spring and autumn bringing cooler temperatures and more frequent rainfall.

The mild climate makes Luxembourg suitable for a variety of agricultural activities, including crop cultivation and livestock farming. Rain is spread fairly evenly throughout the year, and the country can experience occasional periods of heavy rainfall, especially in the autumn and winter months. Due to its geographic location, Luxembourg does not experience extreme weather conditions, but occasional snow and cold fronts from northern Europe can impact the country during winter.

Natural Resources

Luxembourg is not particularly rich in natural resources compared to other European countries. Historically, the country’s economy was based on its iron ore deposits, but these resources have been largely depleted over the years. In modern times, Luxembourg’s economy has shifted away from heavy industries like steel manufacturing to finance, technology, and services, which are now the core drivers of the country’s wealth.

The country has some mineral resources, including small deposits of limestone, gravel, and clay, which are used in construction. Luxembourg also has a modest amount of arable land used for agriculture, primarily for growing grains, vegetables, and wine grapes. Viticulture, in particular, is a significant industry, especially in the Moselle Valley, where the country’s famous white wines are produced. Luxembourg’s limited natural resources are more than compensated by its well-developed service sector, particularly in banking and financial services.

People

Population and Ethnic Composition

Luxembourg has a population of approximately 634,000 people, making it one of the smallest countries in Europe. However, due to its high per capita income and a large expatriate community, the country has a relatively high standard of living. The population density is relatively low compared to many European countries, and a significant proportion of the population lives in urban areas, particularly in Luxembourg City.

Luxembourg is ethnically diverse, with a mix of nationalities and backgrounds due to its history as a crossroads of European trade. The majority of the population is ethnically Luxembourgish, but there are significant communities of Portuguese, French, Italian, Belgian, and German descent. The country’s position at the heart of Europe has led to a high degree of immigration, especially from neighboring countries. The influx of expatriates, along with its strong economic ties to other European nations, has created a multicultural society.

The Luxembourgish population is also linguistically diverse, with three official languages—Luxembourgish, French, and German—spoken by most people. Luxembourgish, a Germanic language with strong influences from French, is the national language and is used in everyday conversation, while French is the language of administrative matters, legislation, and the judiciary. German is the language of the media and is also used in education. English is widely spoken as well, especially in business, with many multinational companies based in Luxembourg.

Language

The linguistic situation in Luxembourg is unique, as the country officially recognizes three languages: Luxembourgish, French, and German. Luxembourgish, or Lëtzebuergesch, is the national language and is spoken by most of the population in daily life. It is a Germanic language with similarities to German but incorporates French influences, making it distinct from both German and French. Luxembourgish is used informally for conversation and in cultural expressions, and it was recognized as an official language in 1984.

French is the primary language used in legal and administrative contexts, and much of the country’s formal documentation, including laws and government communications, are in French. It is also widely spoken in the country’s courts, which are based on the French legal system. German is used in the media, with newspapers, radio, and television programs predominantly published or broadcast in German.

Additionally, due to Luxembourg’s high levels of international business and diplomatic relations, English is frequently used, especially in business and financial services. Many Luxembourgers are multilingual, and it is common for people to speak at least three or four languages, reflecting the country’s cosmopolitan nature.

Religion

Luxembourg is predominantly Roman Catholic, with about 70% of the population identifying as Catholic. Catholicism has played an integral role in shaping the country’s culture and traditions, and religious holidays such as Christmas and Easter are widely celebrated. The Catholic Church in Luxembourg is involved in various social activities, including education and charity work. The country is also home to many beautiful churches and cathedrals, including the Grand Duchy’s national church, the Notre-Dame Cathedral in Luxembourg City.

While Catholicism remains the dominant religion, Luxembourg is home to other religious communities, including Protestant Christians, Jews, and Muslims. The Jewish community in Luxembourg has a long history and has played an important role in the country’s economic and cultural life. Islam is practiced by a smaller portion of the population, primarily among immigrants from North Africa and other Muslim-majority countries. There is also a small but growing group of people who identify as secular or non-religious, reflecting broader trends in Western Europe.

Religious tolerance is a cornerstone of Luxembourgish society, and the country is known for its commitment to freedom of religion. The government ensures that the rights of religious minorities are protected, and religious practice is generally regarded as a private matter, with no state interference.

Social Structure

Luxembourg’s social structure is characterized by its relatively high standard of living, low levels of poverty, and strong social welfare programs. The country has one of the highest GDP per capita rates in the world, and its residents enjoy access to quality healthcare, education, and social services. The wealth of the country is largely attributed to its successful financial services industry, as well as its thriving manufacturing and export sectors.

Family is an important social institution in Luxembourg, and many residents place great emphasis on family life and traditional values. Luxembourg is also known for being a safe, well-organized society with low crime rates. The population is well-educated, with high levels of literacy and a well-developed system of public education that offers free and compulsory education for children up to the age of 18.

Gender roles in Luxembourg are increasingly egalitarian, with women participating in the workforce and in political life at high rates. The government has implemented policies aimed at improving gender equality, and there are initiatives to ensure equal pay, access to healthcare, and opportunities for women in leadership positions.

Economy

Key Industries

Luxembourg has a highly developed, diverse economy that is one of the most advanced in Europe. The country is best known for its financial services industry, which has played a pivotal role in its economic growth. Luxembourg is a leading international financial center and is particularly famous for its banking, investment funds, and insurance industries. The country has a well-regulated and stable financial sector, making it an attractive destination for multinational corporations and wealthy individuals seeking banking and investment services.

The financial sector is complemented by Luxembourg’s strong manufacturing industry, which includes high-tech sectors such as steel production, electronics, machinery, and chemicals. Luxembourg is home to several multinational companies, particularly in the technology and aerospace sectors, and the country’s highly skilled workforce is a key factor in attracting foreign investment.

The service sector, including business services, retail, and tourism, is also a significant contributor to Luxembourg’s economy. The country is a popular destination for business conferences, tourism, and international events. Luxembourg City’s position as a center for European Union institutions, such as the European Court of Justice, further enhances the country’s role as an economic and diplomatic hub.

Agriculture and Livestock

Luxembourg’s agricultural sector is relatively small, accounting for only a small portion of the country’s GDP. The country’s land is primarily used for forestry, with forests covering about one-third of the national territory. Luxembourg also produces some agricultural goods, particularly fruits, vegetables, and livestock, but the country’s agricultural output is limited due to its small size and relatively infertile soil.

The country is known for producing high-quality wine, especially in the Moselle Valley, which lies along the border with Germany. The vineyards of Luxembourg produce white wine varieties, particularly Riesling, which is exported to markets across Europe. Dairy farming and livestock production are also important, though on a smaller scale compared to the industrialized agriculture found in other parts of Europe.

Despite its small agricultural sector, Luxembourg has a highly developed food processing industry that exports products such as meat, dairy, and processed foods. The country’s agriculture is generally highly mechanized, and farming techniques are modern and efficient.

Economic Challenges

Luxembourg faces several economic challenges, despite its wealth and stability. One key challenge is its reliance on the financial sector, which makes the country vulnerable to global economic fluctuations. As the financial industry is a primary driver of Luxembourg’s economy, any downturn in global markets, such as during the 2008 financial crisis, can have significant impacts on the country’s economic performance.

Another challenge for Luxembourg is its small domestic market, which limits the potential for large-scale industrial production and growth. As a result, the country is heavily dependent on international trade and investment, and its economy can be sensitive to changes in global demand. Additionally, Luxembourg faces a growing issue of income inequality, with a large portion of the wealth concentrated among a small number of individuals and businesses.

Despite these challenges, Luxembourg has maintained a resilient economy due to its high standard of governance, investment in technology, skilled workforce, and its ability to adapt to changing global conditions. The country has implemented policies aimed at diversifying its economy, and the continued success of its financial services sector, along with its burgeoning tech and industrial industries, provide hope for sustained economic growth.

Government

Political System

Luxembourg is a constitutional monarchy with a parliamentary democracy. The Grand Duchy of Luxembourg is headed by the Grand Duke, who serves as the ceremonial head of state. The Grand Duke’s powers are limited by the constitution, and the country operates as a representative democracy with a parliamentary system. The Grand Duke’s role is largely symbolic, with real political power lying in the hands of the elected government.

Luxembourg’s legislative branch consists of the Chamber of Deputies, a unicameral parliament with 60 members elected for a five-year term. The legislative branch passes laws, approves the budget, and monitors the executive branch’s activities. The government is headed by the prime minister, who is appointed by the Grand Duke but must have the support of the Chamber of Deputies. The prime minister leads the executive branch, which is responsible for the day-to-day administration of the country.

Luxembourg is known for its political stability, low levels of corruption, and effective governance. The political system operates on a basis of coalition government, with multiple political parties representing different ideological views and working together to form a government.

Legal System

Luxembourg has a well-developed legal system based on civil law, which is heavily influenced by French legal traditions. The judiciary is independent, and the legal system ensures that citizens’ rights are protected under the law. Luxembourg’s judicial system includes a Constitutional Court, which interprets the constitution and ensures that laws and government actions comply with constitutional principles.

The country’s legal framework provides for the protection of individual rights, including freedom of speech, religion, and assembly. Luxembourg is a signatory to numerous international agreements, including the European Convention on Human Rights, and its legal system is closely aligned with the standards set by the European Union.

Foreign Policy

Luxembourg has a strong foreign policy based on its commitment to international cooperation, human rights, and European integration. The country is a member of the European Union, NATO, the United Nations, and several other international organizations. Luxembourg has been an advocate for deeper European integration, particularly within the European Union, and it plays a prominent role in EU decision-making.

Luxembourg’s foreign policy focuses on maintaining good relations with its neighbors, particularly Belgium, France, and Germany, and it has a tradition of supporting peace, stability, and democratic governance on the global stage. The country’s foreign policy also emphasizes the promotion of economic diplomacy, with Luxembourg being a key player in global financial markets.

The country’s small size and strategic location have helped it develop strong diplomatic ties, and Luxembourg has positioned itself as a neutral and respected voice in international affairs.