The Grand Duchy of Luxembourg may be small, but it has the distinction of being the wealthiest nation in the world on a per capita basis. Bordered by France, Germany and Belgium, this landlocked state has enjoyed a very good political, economic and social environment for many years. Such a stable economic and political environment has resulted in excellent trade relations with other countries. What’s more, the financial services industry has always been well catered for and maintained and thus this now accounts for a staggering 25% of Luxembourg’s GDP. It is also responsible for the employment of roughly 10% of the country’s labour force making it a major economic contributor in more ways than one. The Luxembourg Financial Centre is also ranked 8th worldwide and enjoys a 3.9% market share. Because of its exceptional number of private banking enterprises, it is the second largest provider of funds management services globally. It is interesting to note that many of the banks in the country are owned by foreigners.
With so many financial services enterprises to cater for, the Luxembourg Stock Exchange (Bourse De Luxembourg) serves as a major listing centre of international investment funds, equities and bonds. There are currently more than 4100 issuers listed on the Luxembourg Stock Exchange. Located in Av de la Porte-Neuve 11, Luxembourge, the Luxembourg Stock Exchange used to operate only one market known as the ‘Bourse de Luxembourg’. However, as of 18 July 2005, the Luxembourg Stock Exchange started to operate the ‘Euro MTF’ as well. This additional stock market is also sometimes known as ‘Luxalter’.
Currently Luxeumbourg’s economy depends largely on the banking and steel sectors. The country has a high level of economic prosperity and, despite the fact that the country is highly industrialized and export intensive, it enjoys large, expansive green areas which make it an attractive place to live and work. Though steel and banking are the largest contributors to the country’s economy, telecommunications and agriculture also play a role. Luxembourg has a favourable foreign investment climate in medium, light and high-tech industries. The country is also involved in a large amount of importing and exporting. Its main exports are machinery, equipment, steel products, rubber products, chemicals and glass while its main imports are minerals, metals, consumer goods and foodstuffs. It mainly trades with other European countries and the Government’s finances usually enjoy a surplus.
