General Overview
Founded in 963, Luxembourg became a grand duchy in 1815 and an independent state under the Netherlands. It lost more than half of its territory to Belgium in 1839, but gained a larger measure of autonomy. Full independence was attained in 1867. Overrun by Germany in both World Wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined NATO the following year. In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union), and in 1999 it joined the euro currency area.

Demographics
Luxembourg is one of the smallest countries in Europe and it is ranked 175th in size of all the countries of the world. It is about 2,586 sq km. in size and measures 82 km long and 57 km wide. According to the 2005 estimate, the total population was about 46500 and its population density was about 171 personas per sq. km. Luxembourg's climate is a mild, continental climate.

• Country name: Grand Duchy of Luxembourg
• Location: Western Europe, between France and Germany
• Population: 486,006 (July 2008 est.)
• Nationality: Luxembourger(s)
• Languages: Luxembourgish (national language), German (administrative language), French (administrative language)
• Religion: Roman Catholic 87%, other (includes Protestant, Jewish, and Muslim) 13%
• Ethnic Groups: Luxembourger 63.1%, Portuguese 13.3%, French 4.5%, Italian 4.3%, German 2.3%, other EU 7.3%, other 5.2%
• Capital Name: Luxembourg

Economy
Luxembourg has stable, high-income economy. It has many plus points like moderate growth, low inflation and low unemployment. Its industrial sector includes, steel, chemicals, rubber and other products. Moreover, some services like banking and other financial services contribute mainly in economic output. Agricultural is based on small family owned forms. Luxembourg has close trade and financial ties to Belgium and the Netherlands. It is also a member of the EU. Luxemburg has the highest GDP per capita in the world. Moreover it has the fourth highest quality of life. Its unemployment rate is 4.8% during March 2006.

• GDP (purchasing power parity): $38.14 billion
• GDP - real growth rate: 4.5%
• GDP - per capita (PPP): $79,400
• Inflation rate (consumer prices): 2.3%
• Exports: $18.42 billion f.o.b.
• Imports: $23.13 billion c.i.f.

Government
Politics of Luxembourg takes place in a framework of a parliamentary representative democratic monarchy, whereby the Prime Minister of Luxembourg is the head of government, and of a multi-party system. Executive power is under the constitution of 1868, as amended, exercised by the government, by the Grand Duke and the Council of Government (cabinet), which consists of a prime minister and several other ministers. Usually the prime minister is the leader of the political party or coalition of parties having the most seats in parliament. Legislative power is vested in both the government and parliament. The Judiciary is independent of the executive and the legislature.

• Administrative divisions: 3 districts; Diekirch, Grevenmacher, Luxembourg
• Legal system: Based on civil law system; accepts compulsory ICJ jurisdiction
• Independence: 1839 (from the Netherlands)

References
Government of the Grand Duchy of Luxembourg - Official Website
Central Intelligence Agency (CIA) - The World Factbook
Nation Master - World Data Center
Wikipedia - The Free Encyclopedia
Lonely Planet - Travel Guidebook