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Luxembourg: An Open, Successful and Dynamic Economy

During the second half of the 20th century, Luxembourg has achieved one of the strongest economic performances in Europe: sustained economic growth, an outstanding price stability, a very low rate of unemployment and constant growth in the employment market. Today, public finances are in surplus despite the substantial resources spent on modernizing the country's infrastructure. The current account balance is positive.

Luxembourg owes its wealth to the discovery of iron ore in the South of the country. This enabled the progressive development of a powerful steel industry. Today, the steel company Arcelor Mittal (http://www.arcelormittal.com), known throughout the world for its high quality products, remains the Nation's largest employer, and it is one of the world's leading steel producers.

In the 1960's the Government, ever mindful of maintaining a balanced structure in Luxembourg's economy, began to implement a policy of economic development and diversification. Today, the results of this policy are clearly evident. Modern companies from extremely varied backgrounds, using advanced production technologies, now stand alongside traditional heavy industry.

The modest dimensions of the Luxembourg market explain why foreign trade is an essential part of the country's economy. Industry exports more than 80% of what it produces. Around 90% of these exports go to countries within the EU.

Given its geographical position at the heart of the EU, its political and social stability, its highly qualified and professional workforce, as well as the opportunities it offers for investment and foreign capital, Luxembourg has always been an attractive location for the establishment and expansion of numerous foreign companies.

Many North American companies, including Goodyear, DuPont, Delphi Automotive Systems, Guardian Industries, NewellRubbermaid and Husky Injection Molding Systems, have reaped the benefits of establishing manufacturing operations and distribution centers in Luxembourg.

Luxembourg's prime European location and its highly developed transportation and communications networks make it the most advantageous site from which to service the European market. Luxembourg Findel Airport provides both passenger (Luxair: www.luxair.lu) and cargo service (Cargolux: www.cargolux.com) to all major cities in Europe, the United States and beyond.

Luxembourg is a small country where business can be developed easily and directly, without the cumbersome administrative red tape so often encountered elsewhere. Luxembourg is the ideal gateway to Europe for North American companies as they enter or expand within the European market.

For further information contact:
LUXEMBOURG BOARD OF ECONOMIC DEVELOPMENT

Luxembourg
Ministry of the Economy
19-21 Boulevard Royal
L-2914 Luxembourg
Tel: (352) 478-4135
or 478-4124
Fax: (352) 46 04 48
Email: Patrick.Nickels@eco.etat.lu or Francois.Knaff@eco.etat.lu

New York
17 Beekman Place
New York, NY 10022
Tel: (212) 888-6664
Fax: (212) 888-6116
Email: newyork.bed@mae.etat.lu

San Francisco
1 Sansome Street, Suite 830
San Francisco, CA 94104
Tel: (415) 788-0816
Fax: (415) 788-0985
Email: sanfrancisco.cg@mae.etat.lu

Website: http://www.investinluxembourg.lu