Country Profile: Luxembourg

Luxembourg is a small, landlocked grand duchy located in Western Europe, bordered by France, Belgium, and Germany. With a population of approximately 671,000, it is known for its diverse society and high standard of living. The economy focuses predominantly on finance and services, characterized by a high GDP per capita, making it one of the wealthiest countries globally. Governed as a constitutional monarchy, Luxembourg maintains a stable political environment and has made significant contributions to international cooperation through its membership in various organizations, including the EU and NATO.

Geography

Luxembourg is situated in Western Europe, bordered by France to the west, Belgium to the north and east, and Germany to the southeast. The country is landlocked and slightly smaller than Rhode Island, featuring rolling uplands and valleys. Its climate is modified continental, with mild winters and cool summers.

2,586 sq km: Total area of Luxembourg.
327 km: Total land boundaries with neighboring countries.
34.5%: Percentage of land designated as forest (2022).
51.3%: Agricultural land use (2022 estimate).

People and Society

As of 2024, Luxembourg's estimated population is 671,254, predominantly comprised of Luxembourg nationals and a significant number of expatriates. The society is characterized by a mix of ethnicities, languages, and religions, with Luxembourgish as the official language. Urbanization is high, with over 92% of the population living in urban areas.

51.4%: Percentage of currently married women aged 15-49 (2023).
23.2: Youth dependency ratio (2024).
39.9 years: Median age of the population (2024).
83.4 years: Life expectancy at birth (2024).

Economy

Luxembourg boasts a high-income, service-driven economy that ranks among the highest in GDP per capita globally. The banking and financial sector forms a significant part of the economy, supported by domestic demand and low-interest rates. Despite its wealth, the country faces challenges such as labor-market dynamics and energy price volatility.

$86.871 billion: Estimated real GDP in purchasing power parity for 2024.
81.9%: Percentage of GDP sourced from the service sector (2024).
6%: Unemployment rate forecast for 2024.
$93.197 billion: Estimated GDP at official exchange rate for 2024.

Government

Luxembourg operates as a constitutional monarchy, with the Grand Duke as the head of state and the Prime Minister leading the government. The legislative body is a unicameral Chamber of Deputies, directly elected every five years. Citizens have universal suffrage at 18 years of age.

Grand Duke HENRI: Head of state since October 2000.
Prime Minister Luc FRIEDEN: Assumed office November 2023.
60: Total seats in the Chamber of Deputies.
35%: Percentage of women in the Chamber of Deputies.

Military and Security

Luxembourg maintains a small military force, supplemented by a well-organized police system for internal security. The Grand Ducal Police report to the Ministry of Internal Security, and the military participates actively in EU and NATO missions. There is no conscription, and military service is voluntary for both men and women.

1.3% of GDP: Military expenditure for 2024.
900 active personnel: Strength of the Luxembourg Army (2024).
18-26 years: Age range for voluntary military service.

Energy

Luxembourg's energy sector comprises a mix of renewable and non-renewable sources, with a strong emphasis on sustainability. The country has achieved 100% electrification and is investing in renewable energy sources while managing its fossil fuel consumption strategically.

100%: Electricity access for the total population (2022).
5.87 billion kWh: Total electricity consumption in 2023.
37.2%: Solar energy contribution to total installed capacity (2023).
8.715 million metric tonnes: Carbon dioxide emissions (2023).

Environment

The country faces challenges such as air and water pollution, primarily in urban areas, alongside soil pollution in agricultural regions. Luxembourg is a party to multiple international environmental agreements aimed at combatting climate change and protecting biodiversity.

51.3%: Agricultural land use (2022).
356,000 tons: Annual municipal solid waste generated (2015).
28.4%: Percentage of municipal solid waste recycled (2015).

Transportation

Luxembourg has a modern transportation network that includes railways, roads, and an emerging civil aviation sector. It is known for its efficient public transport options, enhancing connectivity within and beyond its borders.

271 km: Total railway network (2020).
3 airports: Total number of airports as of 2025.
147: Total merchant marine vessels (2023).

Communications

The country boasts a high level of connectivity, with nearly all residents having access to the internet and a well-established telecommunications infrastructure. Luxembourg is home to a robust media landscape, including significant broadcasting entities.

99%: Internet penetration rate (2024).
961,000: Total mobile cellular subscriptions (2023).
250,000: Fixed broadband subscriptions (2022).

Key Metrics

Metric	Value	Note
Population	671,254	Estimated for 2024
Area	2,586 sq km	Total area
GDP	$93.197 billion	Estimated for 2024
Unemployment Rate	6%	Estimated for 2024
Electricity Access	100%	Total population electrification (2022)
Life Expectancy at Birth	83.4 years	Estimated for 2024
Literacy Rate	NA	No specific data available
Urban Population	92.1%	Percentage living in urban areas (2023)
Military Personnel	900 active	Estimated for 2024
Carbon Dioxide Emissions	8.715 million metric tonnes	Estimated for 2023