Indicators of economy in Luxembourg

Impact of the COVID-19 pandemic

Overall, the gross domestic product in Luxembourg in 2020 increased from 69.83 billion US dollars to 73.99 billion US dollars. Certainly, there have been shifts in numerous sectors of the economy, but a 6.0 percent increase has been rather unusual this year. While most countries have suffered significant losses, Luxembourg has certainly held its own. The tourism sector alone slumped by around 21 percent. The unemployment rate rose from 5.6 to 6.8 percent. The country's gross debt increased by 16.0 percent. The inflation rate fell from 1.7 percent previously to 0.8 percent by the end of 2020.

Income and purchasing power

The average monthly income in Luxembourg is 7,349 US Dollar per capita. In the USA, the figure is 5,911 US Dollar. However, the prices of daily necessities are also around 13.1 percent higher compared to the USA. If you compare incomes and price levels, life in Luxembourg is cheaper than in the USA. In the end, the higher incomes cancel out the price disadvantage and one receives about 9.9 percent more for the typical income in the country.

However, it is also important to remember that this is a purely statistical model. Both the labor output and the type and quality of the goods received always correspond to the national average on both sides of the equation - so they do not necessarily have to match. Here you can also find an international comparison of cost of living and purchasing power.

Unemployment rates in percentages 1991 - 2021

Economic performance 2021

In the Global Innovation Index, Luxembourg ranked 19th in 2022 with 49.8 points. The index is calculated annually by the World Intellectual Property Organization (WIPO) and most recently included 132 countries. The top country was Switzerland with 64.6 points. Out of the 2,000 largest listed companies in the world, 9 originate from Luxembourg. This is determined annually in the Forbes Global 2000 list. The 9 largest companies in the country in 2022 were:

Rank 188: ArcelorMittal (Luxembourg)
Rank 886: Ternium (Luxembourg)
Rank 1234: Tenaris (Luxembourg)
Rank 1249: Eurofins Scientific Societe Europeenne (Luxembourg)
Rank 1394: Spotify Technology (Luxembourg)
Rank 1408: RTL Group (Luxembourg)
Rank 1547: Aroundtown (Luxembourg)
Rank 1661: CPI Property Group (Luxembourg)
Rank 1995: Aperam (Luxembourg)

Development of gross domestic product in billions of USD 1960 - 2021