Country explorer: Luxembourg

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Overview

Luxembourg is a landlocked, high-income country in Europe with a very small population. Its economy has been volatile in recent decades, and is based on finance, steel and technology.

Luxembourg is one of the smallest countries in Europe.

Economy

Luxembourg has sustained a resilient and booming economy, reflected by its consistently high GDP per capita significantly above its peers and low unemployment rates, underscoring its status as a standout for economic prosperity and stability within high-income countries.

Demographics

Luxembourg has experienced substantial demographic changes characterized by a significant population increase, sustained high net migration, below replacement fertility rates, and a continuous rise in life expectancy, reflecting trends common to high-income countries but distinguished by its pronounced population growth largely driven by migration.

Basic needs

Luxembourg has consistently maintained 100% access to clean cooking fuels, electricity, and high standards of water and sanitation services, positioning itself alongside the highest-ranking nations in terms of meeting basic needs and illustrating its sustained commitment to public health and quality of life.

Human development

Luxembourg has demonstrated significant human development, recognized by its consistent improvement in the Human Development Index, a low child mortality rate, a perfect literacy rate, and a competitive average of learning-adjusted years of schooling, positioning it well above the average for high-income countries and showcasing its commitment to health, education, and living standards.

Environment & energy

Luxembourg has seen a consistent increase in forest area and a progressive move towards renewable energy sources, which, despite its relatively high per capita CO₂ emissions, illustrates its efforts towards sustainability, aligning with broader high-income country trends in environmental consciousness and energy transition.

Technology & innovation

Luxembourg has transitioned into a leading hub for technology and innovation, highlighted by a near-universal internet usage among its population, a high rate of mobile phone subscriptions well over 100 per 100 people, modest but growing investment in research and development, and a significant increase in scientific and technical journal publications per million people, demonstrating both a thriving digital society and a commitment to advancing knowledge.

Culture & society

Luxembourg has experienced significant demographic and social shifts, characterized by a high share of foreign-born population, consistently high levels of self-reported life satisfaction, progressive decreases in gender inequality, and a manageable age dependency ratio, distinguishing it as an attractive, egalitarian, and socially cohesive society within a high-income country context.

Governance

Luxembourg has consistently demonstrated robust governance, notably excelling in rule of law, corruption perception, political civil liberties, and press freedom, underscoring its distinction as a high-standard bearer among high-income countries.

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