Luxembourg
Capital: Luxembourg
Population: 474,413 (July, 2006, est.)
GDP Growth: 3.7% (2005 est.)
Major Industries: Banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism
Natural Resources: Iron ore (no longer exploited), arable land
Type of Government: Constitutional monarchy
This stable, high-income economy, benefiting from its proximity to France, Belgium, and Germany, features solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector, which now accounts for about 28% of GDP, has more than compensated for the decline in steel. Most banks are foreign-owned and have extensive foreign dealings. The economy depends on foreign and cross-border workers for more than 30% of its labor force. GDP per capita ranks first in the world.
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