Luxembourg

A

Principal Cities

The capital and largest city is Luxembourg (also called Luxembourg-Ville or Letzeburg), with a population of 83,800 (2007 estimate). The other important cities, all located in the steel- and iron-making area of the south-west, are Esch-sur-Alzette, population 27,900 (2004 estimate), Differdange, 18,900 (2004 estimate), Dudelange, 17,500 (2003 estimate), and Sanem, 12,332 (1996 estimate).

B

Religion

About 95 per cent of the inhabitants of Luxembourg are Roman Catholics.

C

Language

Luxembourg has three official languages: Luxembourgish, French, and German. Luxembourgish, a Germanic language, is spoken by much of the population. Speakers of Luxembourgish usually also speak French and German, which are taught in schools. French has slightly more mother-tongue speakers than German in Luxembourg, but both are minorities compared to Luxembourgish. French is used in daily transactions in shops and with foreigners, while German is used with foreigners and for technical terms in education.

D

Education

Education is compulsory for all children between the ages of 6 and 15, and illiteracy is almost unknown. The University Centre of Luxembourg (Centre Universitaire de Luxembourg; 1848) is situated in Luxembourg City; the country also has the Higher Institute of Technology (1979) and the International University Institute of Luxembourg (1958).

V

Economy

Luxembourg is one of the world’s most industrialized countries and has the world’s second highest income per head after Switzerland. In 2004 the gross national product (GNP) was estimated at US$25,559 million, equivalent to US$71,240 per head (World Bank estimate; 2006 prices). The estimated annual national budget in 1997 included revenue of US$5,460 million and expenditure of US$5,440 million.

Luxembourg’s prosperity was originally founded on the iron-and-steel industry, which was developed after the 1880s and was based on the rich iron-ore deposits of the south-west. Although the iron ore deposits are no longer exploited, the iron and steel industry remains important, accounting for about 30 per cent of all manufacturing output (1994). Since the 1970s, when world steel prices slumped and domestic iron-ore deposits had been almost exhausted, Luxembourg’s economic growth has depended on other industries—such as chemicals, textiles, plastics and food processing—and on the banking and financial services sector. The services sector accounted for an estimated 85 per cent of gross domestic product (GDP) and 78 per cent of employment in the mid-1990s.

Agriculture contributes about 0.4 per cent of GDP, with livestock and their by-products accounting for the bulk of agricultural output. Wheat and barley are the main crops and wine production is an important activity in the valley of the River Mosel, which forms Luxembourg’s south-eastern border with Germany.