This small, stable, high-income economy - benefiting from its proximity to France, Belgium, and Germany - has historically featured 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, but Luxembourg has lost some of its advantages as a tax haven because of OECD and EU pressure. The economy depends on foreign and cross-border workers for about 60% of its labor force. Luxembourg, like all EU members, suffered from the global economic crisis that began in late 2008, but unemployment has trended below the EU average. Following strong expansion from 2004 to 2007, Luxembourg's economy contracted 3.6% in 2009, but rebounded in 2010-11. The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks among the highest in the world, and is the highest in the euro zone. Turmoil in the world financial markets and lower global demand during 2008-09 prompted the government to inject capital into the banking sector and implement stimulus measures to boost the economy. Government stimulus measures and support for the banking sector, however, led to a 5% government budget deficit in 2009. Nevertheless, the deficit was cut to 1.1% in 2011. Even during the financial crisis and recovery, Luxembourg retained the highest current account surplus as a share of GDP in the euro zone, owing largely to their strength in financial services. Public debt remains among the lowest of the region although it has more than doubled since 2007 as percentage of GDP.

125,400 workers commute daily from France, Belgium, and Germany (2011 est.)

Data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment. Debt instruments for the social funds are not sold at public auctions

This is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area

$122.7 billion (31 December 2011 est.)

$93.37 billion (31 December 2010 est.)

See entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

$263.3 billion (31 December 2011 est.)

$235.3 billion (31 December 2010 est.)

$395.1 billion (31 December 2009 est.)

$369.6 billion (31 December 2008 est.)

$67.63 billion (31 December 2011)

$101.1 billion (31 December 2010)

$105.6 billion (31 December 2009)

Grapes, barley, oats, potatoes, wheat, fruits; dairy and livestock products

Banking and financial services, iron and steel, information technology, telecommunications, cargo transportation, food processing, chemicals, metal products, engineering, tires, glass, aluminum, tourism

Machinery and equipment, steel products, chemicals, rubber products, glass

Germany 22.2%, France 15.6%, Belgium 13.2%, UK 7.3%, Italy 5.4%, Switzerland 4.3%, Netherlands 4.1% (2011)

Minerals, metals, foodstuffs, quality consumer goods

Belgium 30.3%, Germany 26%, France 10.8%, China 6.9%, Netherlands 5.8%, US 5.2% (2011)

$1 billion (31 December 2011 est.)

$11.21 billion (31 December 2008 est.)