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it's a small country in a wealthy region. if paris or frankfurt or inner london or something were city states, they would also have GDP per capitas over US$100k.
I'd like to see the place. It's just difficult to route a trip though there, and I always aim for beach locations in southern Europe, which chews up the vacation days. It's French speaking, right? Or, at least, they'll understand it?
Two words: Tax haven. Many rich French and Germans used (or still use) to keep a lot of their money in Luxembourgish banks which boosts the GDP. Overall I doubt that they enjoy a much higher standard of living than other Western European countries. When it comes to HDI they are not on top of the list. GDP per capita does not equal standard of living.
You're right that GDP per capita doesn't equal standards of living, but GDP per capita on Purchasing Power Parity certainly does. The latter eliminates the distortions that can inflate the former and as such, is much better at reflecting actual standards of living.
And when it comes to GDP per capita (PPP), Luxembourg ranks:
According to the IMF, second worldwide with a whopping $80,119.
According to the World Bank, first worldwide at $86,124.
According to the CIA, third worldwide with $84,700.
Yes, basically Luxembourg is a financial center for two great industrial powers, sandwiched between France and Germany, but more as a special jurisdiction for EU-based investment funds rather than private banking and bank accounts.
Switzerland plays not only a similar role, but borders also with Italy and offers a full range of banking and financial services to a global clientele, both institutional and private.
From what I understand, Lichtenstein specializes in certain kinds of trusts.
As someone mentioned, it's as if, say, New York, Chicago and San Francisco were city-states amid the US, or something like that, or we can take the examples of Singapore and Hong Kong.
Location: The western periphery of Terra Australis
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Originally Posted by bale002
Yes, basically Luxembourg is a financial center for two great industrial powers, sandwiched between France and Germany, but more as a special jurisdiction for EU-based investment funds rather than private banking and bank accounts.
Switzerland plays not only a similar role, but borders also with Italy and offers a full range of banking and financial services to a global clientele, both institutional and private.
From what I understand, Lichtenstein specializes in certain kinds of trusts.
As someone mentioned, it's as if, say, New York, Chicago and San Francisco were city-states amid the US, or something like that, or we can take the examples of Singapore and Hong Kong.
Good Luck!
Wealth and poverty concentrate in urban areas. It's just that wealth seems to push the average way up than the poverty brings it down.
Luxembourg is a tax haven for the wealthy, with a very small population. It is also an incredible expensive place to buy property meaning few poor people can afford to live there.
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How do they do it?
Many rich French and Germans used (or still use) to keep a lot of their money in Luxembourgish banks which boosts the GDP. Overall I doubt that they enjoy a much higher standard of living than other Western European countries. When it comes to HDI they are not on top of the list. GDP per capita does not equal standard of living.
