In recent decades, the Grand Duchy experienced one of the best economic performances in Europe: sustained growth, stable prices, low unemployment rates and steady job growth as well as a substantial foreign trade surplus.
The international financial and economic crisis hit the Luxembourg economy towards the end of 2008. Initially, only the financial sector was concerned. As the crisis spread to the global trade, the export-oriented manufacturing sector was hit as well. However, the country was able to react quickly by supporting the banking sector and implementing financial support programmes that have helped manufacturing companies to maintain a degree of stability.
Financial services - mainly investment fund administration and international private banking - will remain the mainstay of the economy but the other value-adding sectors will continue to make a major contribution.