Luxembourg is a small country located in central Europe, a landlocked country with a total area of only 2,586.4 square kilometers, about half the size of Rizhao City in Shandong Province, but with a very high national income and wealth. This can be seen from the World Bank, where Luxembourg's GDP per capita exceeds $100,000, the highest in the world.
So why is Luxembourg so rich? Let's analyze it from several aspects.
First, the financial center, second only to London and Paris
Luxembourg is one of the most important financial centers in Europe, and many international banks and investment institutions have set up branches here. Luxembourg's financial sector is particularly adept at providing financial and tax services to multinational companies, such as trusts, funds and custody. This has made Luxembourg an important operational center for many multinational companies. The development of the financial industry not only brought a lot of wealth, but also attracted many high-level talents and professionals to work in Luxembourg, which played a role in promoting the economic development of the entire country.
Second, the strategic position is superior
Give you a map and you'll understand.
Luxembourg is strategically located in the heart of Europe, bordering France, Germany, Belgium and other countries. In this geographical location, how poor can it be?
This location means that Luxembourg has easy access to the European market and is also a key member of the European Union. This makes Luxembourg a logistics and transportation hub in Europe, making Luxembourg an important center for logistics and trade in Europe.
3. European strategy
Luxembourg's population is more than 40% foreigners. Wages in Luxembourg are high, but the price of goods is not low, so many people from other countries come to Luxembourg to earn money and then return to their home countries to spend. This creates a situation where wolves have less meat and more meat. In addition, the active solicitation of foreign and multinational companies, as well as the introduction of innovative tax policies, provide advantages for Luxembourg's economic development and market competition.
To sum up, Luxembourg is so rich and prosperous due to factors such as its superior financial center, strategic position, and the strategy of the European Union.
However, compared with Germany and France, Luxembourg's economic structure is very homogeneous and unstable, and if there is a crisis, it can basically rely on allies to rescue.