That dollar amount reflects a 41.1% acceleration from $11.5 billion during 2017.
Year over year, Luxembourg’s revenues from exports increased by 20.3% compared to $13.5 billion in 2020.
Applying a continental lens, 87% of Luxembourg’s exports by value were delivered to fellow European countries while 6.5% were sold to importers in Asia. Luxembourg shipped another 4.1% worth of goods to North America.
Tinier percentages went to Africa (1.3%), Latin America (0.7%) excluding Mexico but including the Caribbean, then Oceania (0.4%) 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 2021. Also shown is each import country’s percentage of total Luxembourg exports.
- Germany: US$4.1 billion (25.1% of Luxembourg’s total exports)
- France: $2.6 billion (16%)
- Belgium: $2.1 billion (12.8%)
- Netherlands: $1 billion (6.4%)
- Italy: $690.5 million (4.2%)
- United States: $425 million (2.6%)
- Poland: $424.5 million (2.6%)
- United Kingdom: $416 million (2.6%)
- Spain: $393.8 million (2.4%)
- Austria: $309.1 million (1.9%)
- China: $247.5 million (1.5%)
- Switzerland: $217.1 million (1.3%)
- Sweden: $205.8 million (1.3%)
- Czech Republic: $203.9 million (1.3%)
- Russia: $170 million (1%)
- Canada: $146.7 million (0.9%)
- Turkey: $142.9 million (0.9%)
- Hungary: $110.4 million (0.7%)
- Denmark: $101.4 million (0.6%)
- Japan: $97.5 million (0.6%)
- Norway: $96.4 million (0.6%)
- Mexico: $95.7 million (0.6%)
- Romania: $94.1 million (0.6%)
- Portugal: $87.1 million (0.5%)
- Finland: $83.3 million (0.5%)
About nine-tenths (89.6%) of Luxembourg exports in 2021 were delivered to the above major trade partners.
The fastest growers among Luxembourg’s top trading partners from 2020 to 2021 were Mexico (up 126.9%), Finland (up 41.2%), Netherlands (up 40.9%), Czech Republic (up 38.4%), United States of America (up 37.9%), then Russia (up 37.1%).
There was a pair of decliners, namely Turkey (down -20.2%) and the United Kingdom (down -10.8%).
Countries Causing Luxembourg’s Largest Trade Deficits
Overall Luxembourg experienced a -$9.3 billion trade deficit during 2021, expanding by 25.9% from -$7.4 billion in red ink one year earlier in 2020.
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.
- France: -US$517.3 million (country-specific trade deficit in 2021)
- Vietnam: -$159.6 million
- Germany: -$2 billion
- United States of America: -$442.7 million
- Belgium: -$3.9 billion
- Japan: -$395.2 million
- China: -$512.2 million
- Italy: -$98.8 million
- United Kingdom: -$106.2 million
- Slovakia: -$61.4 million
Among Luxembourg’s trading partners that cause the greatest negative trade balances, Luxembourg’s deficits with France (up 1,067%), Vietnam (up 41%) and Germany (up 29.7%) grew at the fastest percentage pace from 2020 to 2021.
In addition, Luxembourg went from an $84 million surplus in 2020 to incur a -$106.2 million deficit in 2021 trading with the United Kingdom.
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.
- United Kingdom: US$182.7 million (country-specific trade surplus in 2021)
- Austria: US$128.9 million (country-specific trade surplus in 2021)
- Russia: $126.2 million
- Sweden: $72.1 million
- Turkey: $67.7 million
- Norway: $61.7 million
- Romania: $54 million
- Spain: $50.7 million
- Mexico: $41 million
- Hong Kong: $31.7 million
- Brazil: $29.2 million
Among Luxembourg’s trading partners that generate the greatest positive trade balances, Luxembourg’s surpluses with Mexico (up 8,939%), Brazil (up 75%) and Russia (up 56.9%) grew at the fastest percentage pace from 2020 to 2021 .
In addition, Luxembourg transitioned from a -$202 million deficit to garner $50.7 million in black ink year over year with Spain.
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 September 2, 2022
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on September 2, 2022
International Trade Centre, Trade Map. Accessed on September 2, 2022
Investopedia, Net Exports Definition. Accessed on September 2, 2022
Wikipedia, List of Companies of Luxembourg. Accessed on September 2, 2022
Wikipedia, Luxembourg. Accessed on September 2, 2022
