Luxembourg economy

The industrial base of Luxembourg has declined since the steel crisis of the 1970s. Since then, Luxembourg has tried to diversify its economy. Today it is dominated by the service sector, including banking, which makes up the largest part.

However, authorities are trying to save the industry the best they can with consolidation of the steel industry (ArcelorMittal), among others, but are now focusing on the implantation of foreign high-tech companies. These should form an additional pillar alongside the banking sector, which became more volatile since the crisis of 2008.

The strategy is to avoid another economic dependence similar to that of the steel industry after the war. The government also encourages the construction of research centres in the Grand Duchy.

The University of Luxembourg was founded, for example, to promote and encourage this policy of economic development which should allow a new activity area to emerge in the coming decades. To protect employment, Luxembourg is forced to diversify its economy continuously so as to generate growing employment and remain competitive at European and world level.

The 10 largest employers in Luxembourg

Arcelor Mittal

4,600

BGL BNP Paribas

4,060

Groupe Cactus

3,990

P&T Luxembourg

3,990

Chemins de fer luxembourgeois

3,970

Goodyear Dunlop Tires Corporation

3,250

Groupe Dussmann

3,110

Luxair

2,390

Price Waterhouse Coopers

2,280

Centre Hospitalier de Luxembourg

2,130

Source: Statec