Economy (Luxembourg)
====================


     Overview:
         The stable economy features moderate growth, low inflation, and negligible
         unemployment. Agriculture is based on small but highly productive
         family-owned farms. The industrial sector, until recently dominated by
         steel, has become increasingly more diversified, particularly toward
         high-technology firms. During the past decade, 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.
         Luxembourg participates in an economic union with Belgium on trade and most
         financial matters and is also closely connected economically to the
         Netherlands.
     GDP:
         purchasing power equivalent - $7.83 billion, per capita $20,200; real growth
         rate 2.5% (1991 est.)
     Inflation rate (consumer prices):
         3.7% (1990)
     Unemployment rate:
         1.3% (1990)
     Budget:
         revenues $2.5 billion; expenditures $2.3 billion, including capital
         expenditures of NA (1988)
     Exports:
         $6.3 billion (f.o.b., 1990)
       commodities:
         finished steel products, chemicals, rubber products, glass, aluminum, other
         industrial products
       partners:
         EC 75%, US 5%
     Imports:
         $7.5 billion (c.i.f., 1990)
       commodities:
         minerals, metals, foodstuffs, quality consumer goods
       partners:
         Belgium 37%, FRG 31%, France 12%, US 2%
     External debt:
         $131.6 million (1989 est.)
     Industrial production:
         growth rate - 0.5% (1990); accounts for 25% of GDP
     Electricity:
         1,500,000 kW capacity; 1,163 million kWh produced, 3,170 kWh per capita
         (1991)
     Industries:
         banking, iron and steel, food processing, chemicals, metal products,
         engineering, tires, glass, aluminum
     Agriculture:
         accounts for less than 3% of GDP (including forestry); principal products -
         barley, oats, potatoes, wheat, fruits, wine grapes; cattle raising
         widespread
     Economic aid:
         none
     Currency:
         Luxembourg franc (plural - francs); 1 Luxembourg franc (LuxF) = 100 centimes
     Exchange rates:
         Luxembourg francs (LuxF) per US$1 - 32.462 (January 1992), 34.148 (1991),
         33.418 (1990), 39.404 (1989), 36.768 (1988), 37.334 (1987); note - the
         Luxembourg franc is at par with the Belgian franc, which circulates freely
         in Luxembourg
     Fiscal year:
         calendar year