Business Directory Luxembourg
Luxembourg, officially the Grand Duchy of Luxembourg, is a landlocked country in Western Europe. It is bordered by Belgium to the west and north, Germany to the east, and France to the south. Its capital, Luxembourg City, is one of the four official capitals of the European Union (together with Brussels, Frankfurt, and Strasbourg) and the seat of the European Court of Justice, the highest judicial authority in the EU. Its culture, people, and languages are highly intertwined with its neighbors, making it essentially a mixture of French and German cultures, as evident by the nation's three official languages: French, German, and the national language of Luxembourgish. The repeated invasions by Germany, especially in World War II, resulted in the country's strong will for mediation between France and Germany and, among other things, led to the foundation of the European Union.
With an area of 2,586 square kilometers (998 sq mi), it is one of the smallest sovereign states in Europe. In 2019, Luxembourg had a population of 613,894, which makes it one of the least-populous countries in Europe, but by far the one with the highest population growth rate. Foreigners account for nearly half of Luxembourg's population. As a representative democracy with a constitutional monarch, it is headed by Grand Duke Henri and is the world's only remaining sovereign grand duchy. Luxembourg is a developed country, with an advanced economy and one of the world's highest GDP (PPP) per capita. The City of Luxembourg with its old quarters and fortifications was declared a UNESCO World Heritage Site in 1994 due to the exceptional preservation of the vast fortifications and the old city.
Luxembourg's stable and high-income market economy features moderate growth, low inflation, and a high level of innovation. Unemployment is traditionally low, although it had risen to 6.1% by May 2012, due largely to the effect of the 2008 global financial crisis. In 2011, according to the IMF, Luxembourg was the second richest country in the world, with a per capita GDP on a purchasing-power parity (PPP) basis of $80,119. Luxembourg is ranked 13th in The Heritage Foundation's Index of Economic Freedom, 26th in the United Nations Human Development Index, and 4th in the Economist Intelligence Unit's quality of life index.
The industrial sector, which was dominated by steel until the 1960s, has since 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 production. Services, especially banking and finance, account for the majority of economic output. Luxembourg is the world's second largest investment fund center (after the United States), the most important private banking centerS in the Eurozone and Europe's leading center for reinsurance companies. Moreover, the Luxembourg government has aimed to attract Internet start-ups, with Skype and Amazon being two of the many Internet companies that have shifted their regional headquarters to Luxembourg. Other high-tech companies have established themselves in Luxembourg.