World Country Guide

Business Profile

Economy
Luxembourg is one of the most prosperous countries in Western Europe. Two very different industries – banking and steel – have historically been the mainstays of the economy. The steel industry has ceased to be as dominant as other industries, notably chemicals, rubber, plastics, metal products and light manufacturing (textiles, paper, electronic equipment) have prospered. The banking and finance sector is also in a healthy condition: companies originally attracted to Luxembourg by favourable banking secrecy laws and low taxation have prospered despite the gradual harmonisation of taxes and tariffs across the EU. There is also a small but healthy agricultural sector mainly producing crops. During 2001 and 2002, the economy grew at around 5 per cent annually – twice the average EU rate, with inflation of 3 per cent. The Luxembourgeois economy has long been linked with that of Belgium, initially through the 1921 economic union, supplemented by a further treaty in 1958 and latterly, by mutual membership of the EU. Luxembourg was an inaugural adopter of the Euro at the beginning of 1999. Belgium is the largest single trading partner, followed by The Netherlands and France.

Business
Businesspeople are expected to wear suits. It is advisable to make prior appointments and business cards are often used. Avoid business visits during Christmas and New Year, Easter week and July and August. Office hours: Generally Mon-Fri 0830-1200 and 1400-1800.

Commercial Information
The following organisations can offer advice: Belgium/Luxembourg Chamber of Commerce, Riverside House, 27/29 Vauxhall Grove, London SW8 1SY (tel: (020) 7793 1623 (general) or (020) 7820 7839 (members only); fax: (020) 7793 1628; e-mail: info@blcc.co.uk; website: www.blcc.co.uk); or Chamber of Commerce, 31 boulevard Konrad Adenauer, L-2981 Luxembourg-Kirchberg (tel: 423 9391; fax: 438 326; e-mail: chamcom@cc.lu; website: www.cc.lu).

Conferences/Conventions
The location of the Grand Duchy of Luxembourg at the heart of the EU ensures its status as one of the most popular destinations for conferences and conventions in Western Europe. For further information, contact Luxembourg-Congrs, Hmicycle Europen, 1 rue de Fort Thngen, L-1499 Luxembourg-Ville (tel: 4302 57750-3; fax: 4302 57575; e-mail: info@luxcongress.lu; website: www.luxcongress.lu).