Luxembourg : economy statistics and industry reports

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 and 3.

4% in 2009, but rebounded 2.

6% in 2010.

The country continues to enjoy an extraordinarily high standard of living - GDP per capita ranks third in the world, after Liechtenstein and Qatar, and is the highest in the EU.

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, however, the deficit was cut below 3% in 2010.