The graph shows GDP per capita in 2014 in U.S. dollars. Luxembourg is the highest, though it is a small country. Why is Luxembourg’s GDP per capita so high?
- Big companies
Luxemburg was originally an agricultural country. However, after the Second World War, it succeeded in inviting big international companies such as Goodyear, Du Pon, and Monsanto. In 1960s, thanks to the steel industry such as Arcelor, Luxembourg became a big economic power. Arcelor was acquired by Mittal Steel Company whose base was in India and became Arcelormittal, but its head office is still in Luxemburg and remains a big company.
- The high rate of tertiary industries, particularly the finance business
The major industries in Luxembourg are the tertiary industries, and it occupies more than 80 percent of its GDP. The finance business in particular contributes to Luxemburg’s wealthy economy. Luxembourg is the center of private banking in the Eurozone, and for example, most of Kim Jong-il’s hidden assets are in the bank in Luxemburg. In addition, Aquastream, which controls the International Securities Clearing Corporation, is the symbol of Luxembourg’s financial prosperity. Furthermore, financial institutions such as European Investment Bank, Eurostat, and European Court of Auditors are located in Luxembourg, so it works as a financial center. The financial sector produces a great deal of employment, and as a result, Luxemburg remains the low rate of unemployment.
- A small population
The population of Luxembourg is small: around 557,000. Plus, 60 percent of workers are from other countries like Germany, France, and Belgium. As a result, when GDP per capita is calculated, it becomes large.
- The location
Since Luxembourg is located the middle of EU, it is easy to export something and have dealings with other big economic countries.
Luxemburg’s high GDP per capita is mainly supported by the finance sector. By the way, the top countries in GDP per capita are mostly European countries. What do you think the reasons?
What about the Eurozone 
Your titel really caught my attention! The question is interesting: Why is Luxembourg so rich? You sum op some data but you do not really provide a real introduction or conclusion. Maybe for next time you could elaborate a little bit more? A follow-up on this article could also be interesting! Keep up the good work!
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This is a really interesting topic! The fact that most of Kim Jong-il’s hidden assets are in the bank in Luxembourg… It was so surprising because I thought Swiss bank is more famous for that kind of things.
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