That dollar amount results from 17% increase compared to $14.7 billion 5 years earlier during 2019.
Year over year, Luxembourg’s revenues from exports grew by 2.1% versus $16.8 billion in 2022.
Applying a continental lens, 84.3% of Luxembourg’s exports by value was delivered to fellow European countries while 7.8% was sold to importers in Asia. Luxembourg shipped another 5.1% worth of goods to buyers in North America.
Luxembourg is one of the four European Union institutional seats. It is also home to the Court of Justice of the European Union. Other EU member states bought 79.1% of total Luxembourg export sales.
Tinier percentages went to Africa (1.28%), Latin America (1.26%) excluding Mexico but including the Caribbean then Oceania (0.2%) led by Australia and New Zealand.
Luxembourg’s Top Trading Partners
Below is a list showcasing 25 of Luxembourg’s top trading partners, countries that imported the most Luxembourg shipments by dollar value during 2023. Also shown is each import country’s percentage of total Luxembourg exports.
- Germany: US$4.3 billion (25% of Luxembourg’s total exports)
- France: $2.6 billion (15.2%)
- Belgium: $2 billion (11.7%)
- Netherlands: $1.1 billion (6.5%)
- Italy: $732.6 million (4.3%)
- United States: $553 million (3.2%)
- Spain: $446.2 million (2.6%)
- United Kingdom: $419.3 million (2.4%)
- Poland: $413.8 million (2.4%)
- Türkiye: $324 million (1.9%)
- Austria: $322.4 million (1.9%)
- Switzerland: $299.2 million (1.7%)
- mainland China: $242 million (1.4%)
- Czech Republic: $201 million (1.2%)
- Mexico: $179.3 million (1%)
- Sweden: $170 million (1%)
- Denmark: $129.4 million (0.8%)
- Canada: $117 million (0.7%)
- Brazil: $115.9 million (0.7%)
- Romania: $109.8 million (0.6%)
- Slovakia: $105 million (0.6%)
- Portugal: $85.6 million (0.5%)
- Hungary: $85.3 million (0.5%)
- India: $84.5 million (0.5%)
- Norway: $84.2 million (0.5%)
Nearly nine-tenths (88.8%) of Luxembourg exports in 2023 was delivered to the above major trade partners.
The fastest growers among Luxembourg’s listed trading partners were Brazil (up 164.3% from 2022), Slovakia (up 54.6%), Türkiye (up 53.2%), India (up 51.6%) then Romania (up 28.1%).
There were 6 double-digit decliners. These were suppliers in Norway (down -25.2% from 2022), Sweden (down -19.4%), Denmark (down -17.5%), Hungary (down -12%), Portugal (down -10.9%) and Poland (down -10.2%).
Countries Causing Luxembourg’s Largest Trade Deficits
Overall Luxembourg experienced a -US$8.87 billion trade deficit during 2023, falling by -10.2% from -$9.88 billion in red ink one year earlier in 2022.
As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit. It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.
Luxembourg incurred the highest trade deficits with the following countries.
- Belgium: -US$4.1 billion (country-specific trade deficit in 2023)
- Germany: -$1.3 billion
- mainland China: -$598.2 million
- Japan: -$389.7 million
- Luxembourg: -$316.5 million
- United States: -$177.1 million
- Poland: -$169.1 million
- Vietnam: -$144.7 million
- Italy: -$130 million
- Netherlands: -$99.4 million
Among Luxembourg’s trading partners that cause the greatest negative trade balances, Luxembourgian deficits with Poland (up 131.3%), United States of America (up 64.5%) and Italy (up 21.2%) grew at the fastest pace from 2022 to 2023.
These cashflow deficiencies clearly indicate Luxembourg’s competitive disadvantages with the above countries, but also represent key opportunities for Luxembourg to develop country-specific strategies to strengthen its overall position in international trade.
Countries Generating Luxembourg’s Largest Trade Surpluses
Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.
Luxembourg incurred the highest trade surpluses with the following countries.
- Mexico: US$126.2 million (country-specific trade surplus in 2023)
- Austria: $119.7 million
- Türkiye: $117.9 million
- Switzerland: $84.7 million
- Saudi Arabia: $67.8 million
- Romania: $66.9 million
- Denmark: $62 million
- Canada: $61.3 million
- Norway: $58.4 million
- United Kingdom: $43 million
Among Luxembourg’s trading partners that generate the greatest positive trade balances, Luxembourgian surpluses with Canada (up 248.2%), Saudi Arabia (up 88.1%) and Türkiye (up 55.5%) grew at the fastest pace from 2022 to 2023.
In addition, Luxembourg reversed a -$36.5 million deficit in 2022 trading with Switzerland to garnering the $84.7 million surplus listed above.
These positive cashflow streams clearly indicate Luxembourg’s competitive advantages with the above countries, but also represent key opportunities for Luxembourg to develop country-specific strategies to optimize its overall position in international trade.
Companies Servicing Luxembourg Trading Partners
Seven corporations based in Luxembourg rank among Forbes Global 2000, including the bank Espirito Santo Financial. Below are the other major Luxembourg companies that Forbes included.
- ArcelorMittal (iron, steel)
- Millicom International (telecommunications)
- RTL Group (broadcasting, cable)
- SES (broadcasting, cable)
- Tenaris (oil services, equipment)
- Ternium (iron, steel)
Wikipedia lists companies from Luxembourg, some of which are international trade players.
- Brasserie Nationale (brewery)
- Cargolux (cargo airliner)
- Ceratizit (hard metals)
- ROTAREX Group (medical equipment)
See also Luxembourg’s Top 10 Exports, Germany’s Top Trading Partners, France’s Top Trading Partners, Belgium’s Top Trading Partners and Top EU Export Countries
Research Sources:
Central Intelligence Agency, The World Factbook Europe: Luxembourg. Accessed on December 11, 2024
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on December 11, 2024
International Trade Centre, Trade Map. Accessed on December 11, 2024
Investopedia, Net Exports Definition. Accessed on December 11, 2024
Wikipedia, List of Companies of Luxembourg. Accessed on December 11, 2024
Wikipedia, Luxembourg. Accessed on December 11, 2024