Luxembourg is a small European country, surrounded by Belgium, France and Germany. It’s mostly rural, with dense Ardennes forest and nature parks in the north, rocky gorges of the Mullerthal region in the east and the Moselle river valley in the southeast. Its capital, Luxembourg City, is famed for its fortified medieval old town perched on sheer cliffs.
Luxembourg has a population of 576,249.
Luxembourg is a parliamentary democracy headed by a constitutional monarch. Under the constitution of 1868, executive power is exercised by the Grand Duke and the cabinet, which consists of several other ministers. The Grand Duke has the power to dissolve the legislature, in which case new elections must be held within three months. However, since 1919, sovereignty has resided with the Nation, exercised by the Grand Duke in accordance with the Constitution and the law.
Infrastructure and Economy
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. Consequently, Luxembourg’s economy was forecast to have negligible growth in 2012. 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.
Three languages are recognized as official in Luxembourg: French, German, and Luxembourgish
Euro (€) (EUR)
Luxembourg has no exchange controls.