Luxembourg is the wealthiest country in the European Union, per capita, and its citizens enjoy a high standard of living. Luxembourg is a major center for large private banking, and its finance sector is the biggest contributor to its economy. The country's main trading partners are Germany, France and Belgium.

Why is Luxembourg such a rich country?

According to the World Economic Forum, the major factor for Luxembourg's high GDP is the large number of people working in this tiny, landlocked nation, while residing in the neighbouring western European countries. ... There is also a small but prosperous agricultural sector in the country.

How did Luxembourg become rich?

Luxembourg. The discovery of significant reserves of iron ore in the mid 19th century changed Luxembourg's fortunes almost overnight. Mines and factories sprung up, and the country's lucrative steel industry was born. By the end of the 19th century, Luxembourg had become one of Europe's leading steel producers.