Country Profile: Luxembourg
Luxembourg, a landlocked grand duchy located in Western Europe, is bordered by France, Germany, and Belgium. With a population of approximately 671,254 in 2024, it showcases a diverse society influenced by various ethnic groups, predominantly Luxembourgers, Portuguese, and French. The economy is characterized by a high-income status, celebrating one of the highest GDPs per capita globally, driven by a robust financial sector and dynamic service industries. Governed as a constitutional monarchy, the Grand Duke serves as the head of state, while the government typically operates through a parliamentary system.
Geography
Luxembourg is situated in Western Europe, bordered by France to the southwest, Germany to the east, and Belgium to the west. This landlocked country covers an area of 2,586 sq km and features primarily gently rolling uplands and valleys, with the highest elevation at 559 m above sea level. The climate is modified continental, experiencing mild winters and cool summers. Most of the population resides in the southern part of the country, close to the border with France.
- 327 km of land borders shared with Belgium, France, and Germany
- 51.7% of land designated for agriculture (2023)
- 34.5% of land covered by forests (2023)
People and Society
Luxembourg has an estimated population of 671,254 as of 2024, with urbanization peaking at 92.1% of the total population. The nation is home to a mix of ethnic groups, with 52.9% identifying as Luxembourgers and significant communities of Portuguese and French origins. The official languages include Luxembourgish, French, and German, reflecting its multicultural identity. Life expectancy stands at an impressive 83.4 years as of 2024.
- 1.52% estimated population growth rate (2024)
- 11.6 births/1,000 population birth rate (2024)
- 16.1% of the population aged over 65 years (2024)
Economy
Luxembourg boasts a high-income economy, characterized by a global banking sector and one of the highest GDP per capita rates globally at $128,200 (2024). The economy has displayed resilience with a projected growth rate of 1% for 2024, despite challenges such as energy price volatility. The service sector dominates economic activity, contributing 81.9% to GDP, while the industrial and agricultural sectors account for a smaller share.
- $93.197 billion GDP estimated for 2024
- 6% unemployment rate forecasted for 2024
- 2.1% inflation rate (2024)
Government
Luxembourg operates under a constitutional monarchy with the Grand Duke as the head of state and a Prime Minister managing government functions. The political framework includes a unicameral legislature known as the Chamber of Deputies, comprised of 60 members elected for five-year terms. The legal system is based on civil law, and the recent parliamentary elections held in October 2023 reflect a proportional representation electoral system.
- National holiday celebrated on June 23 (Grand Duke's birthday)
- Citizenship can be acquired by descent and dual citizenship is recognized
- Suffrage is universal and compulsory for citizens aged 18 and above
Military and Security
The Luxembourg Army, a small force with approximately 900 active personnel, is tasked with national defense and international peacekeeping commitments. The country has committed to increasing military expenditures to 2% of GDP by 2025. The army participates actively in NATO and EU missions, reflecting Luxembourg’s dedication to collective security.
- 1.2% of GDP allocated for military expenditures (2024)
- Military service is voluntary, with an age range from 18 to 26
- The Grand Ducal Police handle internal security
Energy
Luxembourg's energy landscape includes 100% electricity access for its population. As a nation focused on sustainability, it has diversified its energy sources, with solar and wind energy accounting for the majority of installed capacity. The total electricity consumption is projected at 5.87 billion kWh for 2023.
- 37.2% of electricity from solar sources in 2023
- 55.6% of electricity from wind sources in 2023
- Total energy consumption per capita is 224.651 million Btu (2023)
Environment
Luxembourg faces environmental challenges such as urban air and water pollution, alongside soil pollution in agricultural areas. The country adheres to numerous international environmental agreements, showing a commitment to addressing climate change and biodiversity. Urbanization has led to a high proportion of the population living in cities, contributing to various environmental pressures.
- 42% of municipal solid waste recycled (2022)
- Total CO2 emissions estimated at 8.715 million metric tonnes (2023)
Transportation
The transportation infrastructure in Luxembourg includes an extensive rail network of 271 km, complemented by 3 airports and 11 heliports. The country has invested significantly in its transportation capabilities, supporting both domestic travel and international connectivity.
- 147 active merchant marine vessels (2023)
- Civil aircraft registration code is LX
Communications
Luxembourg enjoys a high level of connectivity, with 99% of the population being internet users as of 2024. The country has a well-established telecommunications infrastructure, including both fixed line and mobile subscriptions which are widely utilized throughout the nation.
- 961,000 mobile cellular subscriptions (2023)
- 250,000 fixed broadband subscriptions (2022)
Key Metrics
| Metric | Value | Note |
|---|---|---|
| Population | 671,254 | 2024 estimate |
| Area | 2,586 sq km | Landlocked country |
| GDP | $93.197 billion | 2024 estimate (official exchange rate) |
| GDP per capita | $128,200 | 2024 estimate |
| Unemployment rate | 6% | Estimated for 2024 |
| Inflation rate | 2.1% | Forecast for 2024 |
| Life expectancy at birth | 83.4 years | 2024 estimate |
| Total energy consumption per capita | 224.651 million Btu | 2023 estimate |
| Urban population | 92.1% | Total population (2023) |
| Agricultural land % | 51.7% | Total area (2023) |
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