Politically, Luxembourg has a great influence on world decisions as it is a member of the European Union, NATO, OECD, the United Nations, and Benelux. Economically, Luxembourg has gained strength over the past six years. Gross domestic product (GDP) of Luxembourg is subject to increase by around 20 billion U.S. dollars from 2012 to 2020, while the country’s gross domestic product per capita is the largest in the world. The economic sector with the highest share in GDP in Luxembourg is the services sector, accounting for more than 87 percent of GDP.
Luxembourg’s high-income economy features a very low inflation rate, and moderate growth. Although the unemployment rate in Luxembourg is distinctly below the European Union average, it has been increasing in the past years.
Interestingly enough, despite increasing GDP and Luxembourg being a highly industrialized country, the nation has been reporting a trade deficit for the past decade. This is probably due to Luxembourg’s dependence on imports regarding the industry sector, as well as a small agricultural sector which hardly contributes to GDP. All in all, Luxembourg is one of stable industrial countries when it comes to economic factors, a good prerequisite for a high standard of living for its population.