Foreign trade is an essential part of the economic life of the Grand Duchy. Most of the Luxembourg production is for export. With a dynamic and widely open economy, Luxembourg exports more than 85% of its production. Approximately 87% of these exports go to countries of the European Union.
The main trade partners of Luxembourg are its three neighboring countries, Germany, Belgium and France.
Luxembourg has expanded its international trade relations to the American and Asian continents and to the Middle East, thus contributing to the diversification of its export destinations and the origin of its imports.
Overall, Luxembourg has managed to establish itself as a hub for international trade, not only in the financial sector, but also in industrial activities and trade in goods and services.
The country's current account is largely surplus. The annual surplus is around 10% of GDP. This performance is largely generated by the export of services.
While in 1970 the export of goods represented more than twice the value of the export of services, the growing importance of the service sector has caused a reversal of the situation: nowadays, the export of services takes priority over the export of goods.