Small but mighty: Luxembourg leads EU in growth and prosperity

Eurostat, the European statistics institute, has published the key figures for 2024, offering a selection of indicators on the population and economy of EU member states. The data reveals that Luxembourg is a unique country in Europe, standing apart in multiple aspects.

A growing population

Luxembourg is the second least populated country in the European Union after Malta. As of 1 January 2024, the Grand Duchy had 672,050 inhabitants.

However, its population growth rate significantly outpaces its neighbours. Over the past decade, the EU population grew by approximately 7.5 million people (1.7%). In contrast, Luxembourg's population increased by 23% during the same period – nearly a quarter more inhabitants.

Read also – Luxembourg City reaches 136,208 residents in 2024

The country is also the most cosmopolitan in Europe. In 2024, foreign nationals represented 9.2% of the total EU population. In Luxembourg, they accounted for nearly half (47.4%) of the population, compared to less than 1.5% in Romania.

2.4 times wealthy than the European average

Luxembourg is widely regarded as Europe's wealthiest country, or more precisely its citizens as the richest on the continent. Several indicators measure purchasing power, such as average income and GDP per capita.

A key distinction in Luxembourg is that cross-border workers contribute to wealth creation but are not counted in the population. For this reason, actual individual consumption, expressed in purchasing power standard (PPS), provides a more accurate measure.

This artificial monetary unit eliminates price differences between countries, ensuring that one PPS can buy the same quantity of goods and services across all nations. Luxembourg tops the rankings in purchasing power, with 34,000 PPS per capita – 38% above the EU average.

Using this measure, the relative standard of living in each EU country is expressed against the EU average, set at 100. In 2023, Luxembourg recorded the highest value, with GDP per capita in PPS reaching 239.7% of the EU average.

However, with wealth comes expense – prices in Luxembourg are, on average, 45% higher than the European norm.

The country of cars

Despite offering free public transport, Luxembourg remains a nation devoted to cars. In 2022, the EU had nearly 253 million passenger cars on its roads, equating to 563 cars per 1,000 inhabitants – just over one car for every two people.

The highest motorisation rates were recorded in Italy (682 cars per 1,000 inhabitants), followed by Luxembourg.

The Grand Duchy also leads in luxury vehicles. There are more Porsches than Dacias on Luxembourg's roads, and a 2021 study found that the country had one luxury car for every 13 inhabitants.

A modern country

Equal pay between men and women has been a long-standing issue, yet Luxembourg is the only country in the world to have resolved it. In 2022, women in the EU earned 12.7% less per hour than men on average.

In Luxembourg, however, women earn slightly more than men – their average salary is 0.7% higher, according to the National Institute of Statistics and Economic Studies (STATEC).

Pronounced energy-dependence

The energy dependence rate measures how reliant an economy is on imports to meet its energy needs. In 2022, the EU's overall energy dependence rate stood at 62.5%, meaning net imports accounted for more than three fifths of its available gross energy.

Luxembourg's energy dependence is particularly pronounced. The country imports over 90% of its energy needs, putting it far off from self-sufficiency. Additionally, it lags in renewable energy adoption. While 23% of the EU's total final energy consumption in 2022 came from renewable sources, Luxembourg's share was just 14%.

More remarkable figures about Luxembourg can be found here.