Economy

Stable, high-income economy features moderate growth, low inflation, and low unemployment. The industrial sector, until recently dominated by steel, has become increasingly more diversified to include chemicals, rubber, and other products. During the past decades, growth in the financial sector has more than compensated for the decline in steel. Services, especially banking, account for a growing proportion of the economy.

Agriculture is based on small family-owned farms. Luxembourg has especially close trade and financial ties to Belgium and the Netherlands, and as a member of the EU, enjoys the advantages of the open European market. Luxembourg possesses the highest GDP per capita in the world ($62,700 as of 2005). Unemployment was 4.4% of the labour force as of July 2005.