Luxembourg: general information about country, happiness index 2024

World Happiness Report for Luxembourg 2024

  • Overall Happiness Rank Luxembourg: 8
  • Happiness Score Luxembourg:7.122

Happiness is a subjective concept that has long been debated by philosophers, psychologists, and economists alike. However, in recent years, there has been a growing interest in quantifying happiness and using it as a measure of a nation’s overall well-being. This is where the concept of the Happiness Index comes into play.

What is the Happiness Index?

The Happiness Index is a measure that attempts to quantify the overall happiness and life satisfaction of a country’s population. It is based on the idea that traditional economic indicators, such as Gross Domestic Product (GDP), do not fully capture the overall well-being of a society. The Happiness Index takes into account various factors that contribute to an individual’s sense of happiness and life satisfaction, including social support, freedom to make life choices, healthy life expectancy, and perceptions of corruption.

How is the Happiness Index Calculated?

The Happiness Index is calculated through a combination of subjective and objective data. The primary source of data is the Gallup World Poll, which is a survey conducted in over 160 countries. The survey asks respondents to rate their overall life satisfaction on a scale of 0 to 10, with 0 being the worst possible life and 10 being the best possible life.

In addition to the life satisfaction score, the Happiness Index also takes into account the following factors:

  1. GDP per capita: This is a measure of a country’s economic output and standard of living.
  2. Social support: This factor measures the extent to which individuals have supportive relationships and love in their lives.
  3. Healthy life expectancy: This is a measure of the number of years an individual is expected to live in good health.
  4. Freedom to make life choices: This factor measures the extent to which individuals are able to make decisions about their lives without external constraints.
  5. Generosity: This factor measures the extent to which individuals engage in charitable activities and donate to others.
  6. Perceptions of corruption: This factor measures the extent to which individuals perceive their society to be free from corruption.

These factors are weighted and combined to produce an overall Happiness Index score for each country.

What Does the Happiness Index Affect?

The Happiness Index has significant implications for policymaking and societal well-being. Countries with higher Happiness Index scores are generally considered to have better overall quality of life and well-being for their citizens. This can have positive impacts on various aspects of society, including:

  1. Economic productivity: Happier individuals tend to be more productive and engaged in their work, which can contribute to a country’s economic growth.
  2. Public health: Higher levels of happiness and life satisfaction are associated with better physical and mental health outcomes, which can reduce healthcare costs and improve overall well-being.
  3. Social cohesion: Societies with higher levels of happiness tend to have stronger social bonds and lower levels of conflict and crime.
  4. Environmental sustainability: Happier individuals may be more likely to engage in environmentally-friendly behaviors and support policies that promote sustainability.

By focusing on the factors that contribute to happiness and well-being, policymakers can develop strategies to improve the overall quality of life for their citizens. The Happiness Index provides a valuable tool for measuring progress and identifying areas where improvements can be made.

Short information

  • Abbreviation of Luxembourg. LU.

    Luxembourg is a small landlocked country in Western Europe. It is a constitutional monarchy with a parliamentary democracy. The country is known for its high standard of living, strong financial sector, and multicultural society.

  • Luxembourg is one of the wealthiest countries in the world based on GDP per capita.
  • The country is a founding member of the European Union and hosts several EU institutions.
  • Luxembourg is known for its picturesque countryside, historic castles, and vibrant arts scene.

    Luxembourg – A Comprehensive Overview

    Early History and Ancient Civilizations

    The region that is now Luxembourg has been inhabited since prehistoric times. During the Roman era, it was part of the province of Belgica Prima. The area was later settled by the Franks and became part of the Holy Roman Empire.

    Kingdoms and Empires

    In the 10th century, Luxembourg emerged as a county under the rule of the Counts of Ardennes. It later became a duchy in the 14th century, and the House of Luxembourg briefly ruled over parts of Europe during the 14th and 15th centuries.

    Colonial Period

    Luxembourg was not a colonial power itself, but it was ruled by various foreign powers throughout its history, including the Burgundians, the Spanish, the French, and the Austrians.

    Independence and Modern Era

    Luxembourg gained independence in 1839 after being a part of the Netherlands for several years. In the 20th century, it was occupied by Germany during both World Wars. After WWII, Luxembourg became a founding member of the United Nations and played a key role in the formation of the European Union.

    Current Political Situation

    Luxembourg is a constitutional monarchy with a democratic parliamentary system. The Grand Duke serves as the head of state, while the Prime Minister is the head of government. The country has a multi-party system, with the Christian Social People’s Party and the Democratic Party being the main political parties.

    International Relations

    Luxembourg is a member of various international organizations, including the European Union, NATO, and the United Nations. It maintains close ties with its neighbors and has been a strong advocate for European integration.

    Human Development and Economy

    Luxembourg has a highly developed economy, with a strong focus on services, particularly in the banking and financial sectors. It has a high standard of living and ranks among the top countries in terms of human development indicators.

    Cultural Highlights

    Luxembourg has a rich cultural heritage, with influences from both French and German cultures. The country is known for its medieval architecture, including the UNESCO World Heritage Site of the Old Quarters and Fortifications of Luxembourg City. It also has a vibrant arts and music scene.

    Conclusion: Luxembourg faces challenges related to maintaining its economic competitiveness and preserving its cultural identity in an increasingly globalized world. However, its strategic location, political stability, and commitment to innovation provide opportunities for continued growth and prosperity.

Main facts

Location

Luxembourg is a small landlocked country in Western Europe. It borders Belgium to the west and north, Germany to the east, and France to the south. The country is situated at the intersection of the Germanic and Latin worlds, making it a natural meeting point of different cultures.

Map References

Luxembourg is located in Western Europe, part of the Benelux region.

Area – Comparative

With an area of 998 square miles (2,586 square kilometers), Luxembourg is slightly smaller than the state of Rhode Island in the United States.

Land Boundaries and Border Countries

Luxembourg has a total land boundary length of 359 kilometers (223 miles):

Belgium: 148 km (92 miles)

France: 73 km (45 miles)

Germany: 138 km (86 miles)

Coastline

Luxembourg is a landlocked country with no coastline.

Maritime Claims

As a landlocked country, Luxembourg has no maritime claims.

Climate

Luxembourg has a temperate oceanic climate, with warm summers and cool winters. The country experiences four distinct seasons, with moderate precipitation throughout the year.

Terrain

The landscape of Luxembourg is characterized by rolling hills and plateaus, with the Ardennes Mountains in the north and the Moselle Valley in the east. The country also features several rivers and forests.

Elevation Extremes

The highest point in Luxembourg is Buurgplaatz, at 559 meters (1,834 feet) above sea level, located in the Ardennes Mountains in northern Luxembourg. The lowest point is the Moselle River, at 133 meters (436 feet) above sea level.

Natural Resources

Luxembourg has limited natural resources, with iron ore being the most significant. Other resources include timber and arable land.

Major Bodies of Water

The main rivers in Luxembourg are the Moselle, the Sûre, the Our, and the Alzette. The country also has several small lakes, including the Upper Sure Lake, which is a reservoir shared with Germany.

Natural Hazards

Luxembourg is generally free from major natural hazards, although it can experience occasional flooding and landslides.

Geography – Notes

Luxembourg is one of the world’s smallest sovereign states and is known for its strategic location at the heart of Europe. Despite its small size, the country has a diverse landscape and a rich cultural heritage influenced by its French, German, and Belgian neighbors.

  • Forest Area (% of land area): 35.70%. This is the percentage of a country’s total land area that is covered by natural or planted forests.
  • Co2 Emissions: 8,988. CO2 emissions refer to the release of carbon dioxide gas into the atmosphere, primarily from the burning of fossil fuels (coal, oil, and natural gas) for energy production, transportation, and industrial processes.
  • Agricultural Land( %). 53.70%. Agricultural land refers to the share of land area that is arable and used for cultivating crops or raising livestock.
  • Geographic Coordinates:  49.8152736.129583.
  • Capital: The capital of Luxembourg is  Luxembourg City
  • Major Cities:
    • Luxembourg City – Population: 122,273
    • Esch-sur-Alzette – Population: 35,040
    • Differdange – Population: 25,034
  • Population: 645,397
  • Area(Km2): 2586
  • Population Density( P/Km²):242. This is the number of people living per square kilometer of land area in a given region or country.
  • Calling Code:352
  • Official Language(s):Luxembourg is Luxembourgish (National) 55.8%, Portuguese 15.7%, French 12.1%, German 3.4%, Italian 2.8%, English 2.3%, Other 7.9%
  • Currency: EUR

Main Economic Indicators

Luxembourg is a highly developed and prosperous economy, with a strong emphasis on the services sector, particularly in the fields of banking, finance, and technology. Its small size and open market policies have made it an attractive business hub and a leading financial center in Europe. Despite its limited natural resources, Luxembourg has maintained a robust and diversified economy through strategic policies and investments in high-value industries. However, the country faces challenges such as high living costs, labor shortages, and economic volatility due to its reliance on the financial sector.

Inflation Rate (Consumer Prices)

2022: 6.8% (Source: Statec)
2021: 3.5% (Source: Statec)

Credit Ratings

Fitch: AAA (Stable)
Moody’s: Aaa (Stable)
Standard & Poor’s: AAA (Stable)

GDP – Composition by Sector of Origin

Agriculture: 0.3%
Industry: 7.7%
Services: 92%

Key Agricultural and Industrial Products

Agricultural Products: Wine, barley, oats, potatoes, dairy products
Industrial Products: Steel, chemicals, rubber, glass, aluminum, information technology, telecommunications equipment, electrical equipment, electronics, electrotechnical equipment, machinery, automotive components

Labor Force

Total Labor Force: 457,000 (2022 est.)
Comparative Ranking: 181 (out of 197 countries)

Current Account Balance

2022: $2.29 billion (Surplus)
2021: $3.18 billion (Surplus)
Comparative Ranking: 41 (out of 196 countries)

Exports and Imports

Exports: $15.66 billion (2022 est.)
Key Partners: Germany, France, Belgium, Netherlands, United States
Main Commodities: Machinery and equipment, steel products, chemicals, rubber products, glass

Imports: $23.83 billion (2022 est.)
Key Partners: Belgium, Germany, France, Netherlands, China
Main Commodities: Machinery and equipment, vehicles, chemicals, metals, foodstuffs

Reserves of Foreign Exchange and Gold

Foreign Exchange Reserves: $1.02 billion (2022 est.)
Gold Reserves: 22.65 tonnes (2022 est.)

  • GDP (Current US$):$71,104,919,108. It represents a country’s gross domestic product measured in current US dollars. Higher values indicate a larger economy and economic output.
  • Tax Revenue (% of GDP): 26.50%. It refers to the amount of tax revenue collected by the government, expressed as a percentage of the country’s gross domestic product (GDP). Higher values indicate a higher tax burden relative to the size of the economy.
  • Total Tax Rate (% of commercial profits): 20.40%. This is the sum of all taxes payable by businesses, expressed as a percentage of their commercial profits. Higher values indicate a higher tax burden on businesses.
  • Gasoline Price. $1.19. It refers to the cost of one liter or gallon of gasoline/petrol. Higher values indicate more expensive gasoline prices for consumers and businesses.
  • Minimum wage. $13.05. It refers to the lowest legally mandated hourly wage that employers must pay their workers. Higher values indicate a higher minimum level of pay for low-wage workers.
  • Unemployment Rate (%): 5.36%. It represents the percentage of the labor force that is unemployed and actively seeking employment. Higher values indicate more joblessness in the economy.

Social Indicators

1. National Identity

Noun: Luxembourger(s)

Adjective: Luxembourgish

2. Ethnic Groups

Major ethnic groups:

  • Luxembourger (53.4%)
  • Portuguese (16.4%)
  • French (7.1%)
  • Italian (3.7%)
  • Belgian (3.4%)
  • German (2.2%)
  • Other (13.8%)

3. Religions

Religious affiliations:

  • Roman Catholic (87%)
  • Other (13%) – including Protestants, Jews, Muslims, and non-religious

4. Age Structure

Age distribution:

  • 0-14 years: 16.1%
  • 15-64 years: 67.8%
  • 65 years and over: 16.1%

5. Dependency Ratios

Total dependency ratio: 47.9

Youth dependency ratio: 23.7

Elderly dependency ratio: 24.2

6. Median Age

Median age: 39.7 years

Male median age: 38.8 years

Female median age: 40.6 years

7. Lifestyle Indicators

Obesity rate: 22.6% of the population

Alcohol consumption: 12.6 liters of pure alcohol per capita per year

Tobacco use: 21.9% of the population are daily smokers

  • Life Expectancy at Birth: 82.1. Life Expectancy at Birth refers to the estimated average number of years a newborn is expected to live based on current mortality rates. Higher values indicate better health outcomes and living conditions in a country or region.
  • Literacy Rate (% of adults): 100%. It refers to the percentage of the population aged 15 and above who can read and write with understanding of a short simple statement about their everyday life. Higher literacy rates indicate better educational attainment within a population.
  • Birth Rate:10.3. Birth Rate is the total number of live births per 1,000 population in a given year. Higher birth rates indicate a larger share of the population being born each year.
  • Death Rate:7. Death Rate is the number of deaths per 1,000 population in a given year. Higher death rates indicate more people dying annually within a population.
  • Fertility Rate: 1.37. Fertility Rate is the average number of children a woman would have over her reproductive years based on current birth rates. Higher fertility rates indicate larger family sizes and population growth.
  • Internet Users (% of population): 89.3%. Internet Users (% of population) refers to the percentage of the total population in a country or region that has access to and uses the internet. Higher values indicate greater internet penetration and connectivity among the population.
  • Urban Population: 565,488. Urban Population refers to the percentage or number of people living in urban areas or cities within a country or region. Higher urban population values indicate greater urbanization and concentration of people in cities compared to rural areas.
  • Out of Pocket Health Expenditure (% of total health expenditure):10.60%. Out of Pocket Health Expenditure (% of total health expenditure) represents the portion of total health care costs that individuals pay directly out of their own pockets, rather than being covered by insurance or government programs. Higher values indicate greater personal financial burden for health care expenses.

Infrastructure and Services

Military and Security Forces

Luxembourg maintains a single military branch, the Luxembourg Army. It is primarily focused on contributing to NATO missions and international peacekeeping operations. Luxembourg does not have an Air Force or Navy.

Internal security is handled by the Grand Ducal Police, which serves as a national civil police force.

Military Expenditures

Luxembourg’s military spending as a percentage of GDP for the last five years:

  • 2018: 0.55%
  • 2019: 0.63%
  • 2020: 0.68%
  • 2021: 0.72%
  • 2022: 0.73%

Luxembourg ranks among the lowest military spenders globally, with its military expenditure consistently below 1% of GDP.

Personnel Strengths

Luxembourg has a relatively small military force, with approximately 900 active-duty personnel in the Luxembourg Army.

The Grand Ducal Police has around 1,800 officers responsible for law enforcement and internal security.

Military Equipment Inventories and Acquisitions

Luxembourg’s military equipment inventory is modest, consisting primarily of light armored vehicles, infantry weapons, and support equipment. There are no major domestic military production capabilities.

Future acquisitions are focused on upgrading equipment for NATO interoperability and contributions to peacekeeping missions.

Military Service Age and Obligation

Luxembourg has a voluntary military service system. The age range for enlistment is 17 to 24 years old.

There is no mandatory military service obligation in Luxembourg.

Military Deployments

Luxembourg contributes troops to various NATO and UN peacekeeping missions, including:

  • NATO Mission in Kosovo (KFOR)
  • UN Interim Force in Lebanon (UNIFIL)
  • NATO Mission in Lithuania (Enhanced Forward Presence)

Strategic Military Notes

As a small nation with limited military capabilities, Luxembourg’s defense strategy is centered on collective security through NATO membership and contributions to international peacekeeping efforts.

The Luxembourg Army plays a supporting role in NATO operations and focuses on specialized capabilities like reconnaissance, engineering, and logistics.

  • Armed Forces Size: 900. Armed Forces Size refers to the total number of active personnel serving in a country’s military forces, including the army, navy, air force, and other branches. Higher values indicate a larger military presence and personnel.
  • Physicians per Thousand: Number of doctors per 1,000 people is 03.01
  • Population: Labor Force Participation (%): 59.30%. This is the percentage of the total population aged 15 and older that is economically active, meaning they are either employed or actively seeking employment. Higher values indicate a greater proportion of the working-age population engaged in the labor force.

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