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Learn Your World - Luxembourg

To support your global practice, ACC Docket offers country-specific fun facts from your peers who've been there — literally.

Economy

GDP (purchasing power parity in USD)

US$58.243 billion (2016 estimate)


Population

576,249 (2015 estimate)


Corruption

According to Transparency International’s “2016 Corruption Perceptions Index,” Luxembourg is the 10th “cleanest” (i.e., least corrupt) country out of the 176 surveyed.


Economic forecast

Economic growth is projected to stay robust at above four percent in 2017 and 2018, due to strong domestic demand and strengthening activity in the domestic financial sector, which will foster exports. Inflation is rising due to higher commodity prices and increasing wages, due to automatic wage indexation. Unemployment is falling, but, at six percent, the rate remains high, according to the Organisation for Co-operation and Development.


Additional resources

Luxembourg’s official tourism site www.lcto.lu/en

Luxembourg Wort, English language news website www.wort.lu/en

It's getting harder to overlook Luxembourg. Nestled between Belgium, Germany, and France, the country is only 51 miles long and 35 miles wide (roughly the size of Rhode Island). Following the decline of the steel industry in the 1970s, the Grand Duchy (Luxembourg is the only country with a grand duke as its head of state) started courting multinational companies. Amazon and Microsoft are now among those with a large presence in the capital of Luxembourg City. With a population of 115,000, it is the largest city. Each day, some 200,000 commuters arrive from neighboring countries. Luxembourg fund managers today have some four trillion euros in assets under management — second only to the United States.

The transformation has not always been easy — as rush-hour drivers can attest. The 2014 "LuxLeaks" scandal, in which over 350 confidential tax agreements between companies and the government were made public, continues to reverberate. But the Grand Duchy continues to evolve. Construction cranes dot the capital skyline, as Deloitte and other multinational companies build new offices. By 2021, a tramline will run from the train station through the office district of Kirchberg (home to the European Court of Justice and several major law firms) and on to the airport. From there, you can fly directly to most major European cities.

However, why fly when there's plenty to stay and see? Two euros gets you a bus or train ticket to anywhere in the country (compactness has its virtues). There's the "Little Switzerland" region of Mullerthal, great for hiking, visiting castles, and sipping local wines. Farther south, where the borders of Luxembourg, Germany, and France meet, is the town of Schengen, which lent its name to the treaty that permits passport-free travel among the EU member countries. Or grab a bike and explore the 800 miles of trails that crisscross the Grand Duchy. No passport required.

About the Author

Matthew Benz is a senior counsel Altisource in Luxembourg.