Economy of Luxembourg
Luxembourg's small but productive agricultural sector employs about 1%-3% of the work force. Most farmers are engaged in dairy and meat production. Vineyards in the Moselle Valley annually produce about 15 million litres of dry white wine, most of which is consumed locally.
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Foreign Investment
Luxembourg offers a favourable climate to foreign investment. Successive governments have effectively attracted new investment in medium, light, and high-tech industry. Incentives cover taxes, construction, and plant equipment. U.S. firms are among the most prominent foreign investors, producing tires (Goodyear), chemicals (DuPont), glass (Guardian Industries), and a wide range of industrial equipment. The current value of U.S. direct investment is almost $1.5 billion, on a per capita basis--the highest level of U.S. direct investment outside of North America.
Luxembourg's trade account has run a persistent deficit over the last decade, but the country enjoys an overall balance-of-payment surplus, due to revenues from financial services. Government finances are strong, and budgets are normally in surplus.
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Labour Relations
Labour relations have been peaceful since the 1930s. Most industrial workers are organized by unions linked to one of the major political parties. Representatives of business, unions, and government participate in the conduct of major labour negotiations.
Foreign investors often cite Luxembourg's labour relations as a primary reason for locating in the Grand Duchy. Unemployment in 1999 averaged less than 2.8% of the work force.
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See also
- OECD's Luxembourg country Web site and OECD Economic Survey of Luxembourg
- Economy of Europe
- Luxembourg
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External links
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