That dollar amount results from an 11% gain from $15.1 billion five years earlier during 2018.
Year over year, Luxembourg’s revenues from exports increased by 3.5% compared to $16.2 billion in 2021.
Applying a continental lens, 86.4% of Luxembourg’s exports by value was delivered to fellow European countries while 6.5% were sold to importers in Asia. Luxembourg shipped another 4.6% worth of goods to North America.
Tinier percentages went to buyers in Africa (1.6%), Latin America (0.7%) 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 2022. Also shown is each import country’s percentage of total Luxembourg exports.
- Germany: US$4.3 billion (25.5% of Luxembourg’s total exports)
- France: $2.6 billion (15.3%)
- Belgium: $2.1 billion (12.4%)
- Netherlands: $1.2 billion (6.9%)
- Italy: $721.2 million (4.3%)
- United States: $491 million (2.9%)
- Poland: $460.5 million (2.7%)
- United Kingdom: $444.8 million (2.6%)
- Spain: $429.2 million (2.6%)
- Austria: $352.7 million (2.1%)
- China: $248.8 million (1.5%)
- Switzerland: $243.5 million (1.4%)
- Türkiye: $211.4 million (1.3%)
- Sweden: $210.8 million (1.3%)
- Czech Republic: $206.2 million (1.2%)
- Mexico: $175.2 million (1%)
- Denmark: $156.8 million (0.9%)
- Norway: $112.6 million (0.7%)
- Canada: $97.9 million (0.6%)
- Hungary: $97 million (0.6%)
- Portugal: $96 million (0.6%)
- Finland: $86.3 million (0.5%)
- Romania: $85.7 million (0.5%)
- Japan: $81.3 million (0.5%)
- Ireland: $68.4 million (0.4%)
Nine-tenths (90.2%) of Luxembourg exports in 2022 was delivered to the above major trade partners.
The fastest growers among Luxembourg’s top trading partners were Mexico (up 83% from 2021), Denmark (up 54.6%), Türkiye (up 47.9%), Norway (up 16.3%), then the United States of America (up 15.5%).
There were 5 decliners, namely suppliers in Canada (down -33.3% from 2021), Japan (down -16.6%), Hungary (down -12.2%), Romania (down -8.9%) and France (down -1.4%).
Countries Causing Luxembourg’s Largest Trade Deficits
Overall Luxembourg experienced a -US$9.26 billion trade deficit during 2022, flatlining via -0.3% from -$9.29 billion in red ink one year earlier in 2021.
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$4.3 billion (country-specific trade deficit in 2022)
- Germany: -$1.5 billion
- mainland China: -$527.3 million
- Japan: -$425.5 million
- Luxembourg: -$358.1 million
- France: -$228.7 million
- United States: -$141.6 million
- Vietnam: -$140.4 million
- Netherlands: -$98.2 million
- Hungary: -$94.2 million
Among Luxembourg’s trading partners that cause the greatest negative trade balances, Luxembourg’s deficits with the Netherlands (up 202.3%), Hungary (up 100.5%) and Belgium (up 8.5%) grew at the fastest pace from 2021 to 2022.
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.
- Austria: US$157.6 million (country-specific trade surplus in 2022)
- Mexico: $120.9 million
- Denmark: $80.3 million
- Norway: $75.8 million
- United Kingdom: $75.4 million
- Türkiye: $72.9 million
- Sweden: $69.9 million
- Romania: $54.3 million
- Finland: $41.2 million
- Egypt: $38.7 million
Among Luxembourg’s trading partners that generate the greatest positive trade balances, Luxembourg’s surpluses with Denmark (up 328.4%), Mexico (up 194.5%) and Egypt (up 94.8%) grew at the fastest pace from 2021 to 2022.
In addition, Luxembourg transitioned from a -$106.2 million deficit trading with the UK in 2021 to generate $75.4 million in black ink year over year with Britain.
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 October 24, 2023
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on October 24, 2023
International Trade Centre, Trade Map. Accessed on October 24, 2023
Investopedia, Net Exports Definition. Accessed on October 24, 2023
Wikipedia, List of Companies of Luxembourg. Accessed on October 24, 2023
Wikipedia, Luxembourg. Accessed on October 24, 2023
