Luxembourg is one of the world's most industrialized countries and has a high standard of living. In 1999 the gross national product was $19.3 billion, or $44,740 per person. The national budget in 1997 included revenue of $7.5 billion and expenditure totaling $6.7 billion.
Banking, manufacturing, agriculture, and tourism are the most important economic sectors. Major manufactures include iron and steel, processed food, rubber and plastic products, metal and machinery products, paper and printing products, food products, and chemicals. In the early 1990s the annual production of pig iron totaled about 2.3 million metric tons and crude steel 3.1 million tons; dwindling iron resources and reduced demand for Luxembourg's steel exports have weakened the metal industry since the mid-1970s. However, the growth of Luxembourg's financial sector has compensated for the steel industry's diminishing importance. Agriculture plays a minimal role in the country's economy. Principal crops include barley, wheat, potatoes, oats, rye, and wine grapes. Substantial numbers of cattle, hogs, and poultry are also raised.
The stable, high-income economy features 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 has more than compensated for the decline in steel. Services, especially banking, account for a substantial proportion of the economy. Agriculture is based on small family-owned farms. The economy depends on foreign and trans-border workers for 30% of its labor force. Luxembourg has a custom union with Belgium and the Netherlands, and, as a member of the EU, enjoys the advantages of the open European market. It joined with 10 other EU members to launch the euro on 1 January 1999.
