United KingdomChapitres
The Grand Duchy of Luxembourg and the United Kingdom share a robust and enduring economic relationship, underpinned by deep-rooted diplomatic ties. On January 10, 2020, both nations commemorated the 140th anniversary of their diplomatic relations, underscoring a longstanding partnership. Luxembourg established its embassy in London in April 1941, further cementing these bilateral relations.
The Luxembourg Chamber of Commerce, in collaboration with the Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, inaugurated a trade office within the Luxembourg Embassy in London in 2021. This initiative aims to bolster economic ties, reflecting the UK's status as one of Luxembourg's most significant trading partners for both goods and services.
The UK's departure from the European Union (Brexit) has led to significant economic and regulatory changes. The UK-EU Trade and Cooperation Agreement (TCA) governs post-Brexit trade, ensuring tariff-free and quota-free goods trade but imposing new customs checks, regulatory barriers, and rules of origin requirements. The services sector, particularly financial services, faced challenges as the UK lost automatic access to EU markets under passporting rules.
Key sectors driving the UK economy include financial services, technology, life sciences, and renewable energy. The financial services sector, centered in London, contributes over 10% of GDP and remains a global leader despite Brexit-related adjustments. The technology sector is rapidly expanding, with the UK hosting Europe's largest tech ecosystem, valued at $1 trillion, and attracting record venture capital investment. The life sciences industry, supported by world-class research institutions, continues to grow, particularly in biotech and pharmaceuticals. Meanwhile, the renewable energy sector is advancing, with the UK being a leader in offshore wind capacity and committed to achieving net-zero emissions by 2050.
OECD, UK Tech Nation, World Bank
Vos conseillers auprès de la Chambre de Commerce
Christophe Brighi
Alissa Dörr
Contactez-nous: unitedkingdom@cc.lu
Indicateurs clés
- Surface
- 243,610 km2
- Population
- 67.081 million (June 2020 est.)
- Type de gouvernement
- parliamentary constitutional monarchy; a Commonwealth realm
- Langues
- English
- PIB
- £2.2 trillion (2023)
- Taux de croissance
- 0.9% (2024)
- HDI
- 15
- Capitale
- London
Indicateurs macroéconomiques
Gross Domestic Product (GDP):
In 2024, the UK's GDP grew by 0.9%, an improvement from the 0.4% growth observed in 2023. Quarterly data indicates a 0.1% GDP increase in Q4 2024, following stagnation in Q3. The services sector, particularly professional, scientific, and technical activities, was the primary contributor to this growth.
Unemployment:
The unemployment rate rose to 4.4% in the three months ending November 2024, up from 3.9% in the same period the previous year. This increase equates to approximately 1.56 million unemployed individuals, with notable rises among those unemployed for up to 12 months.
Source: OECD - Economic Forecast
Inflation and Monetary Policy:
As of January 2025, the UK's headline inflation rate stood at 3%. In response, the Bank of England maintained interest rates at 4.5%, adopting a cautious stance amid global economic uncertainties, including trade tensions.
Fiscal Outlook:
The Organisation for Economic Co-operation and Development (OECD) recently revised its UK growth forecasts, projecting a GDP growth rate of 1.4% for 2025, down from an earlier estimate of 1.7%. This adjustment reflects concerns over global trade dynamics and domestic economic performance. //www.investmentweek.co.uk/+3Reuters+3Financial Times+3
In summary, while the UK economy has shown resilience with modest growth, challenges such as rising unemployment and external economic pressures persist.
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
8.576 |
4.839 |
0.340 |
1.083 |
1.484 |
|
Gross domestic product, current prices U.S. dollars (Billions) |
3,144.079 |
3,125.404 |
3,382.115 |
3,587.545 |
3,730.261 |
|
Gross domestic product per capita, current prices U.S. dollars (Units) |
46,731.477 |
46,103.227 |
49,647.559 |
52,423.294 |
54,279.939 |
|
Inflation, average consumer prices Percent change (Units) |
2.588 |
9.067 |
7.305 |
2.624 |
2.074 |
|
Volume of imports of goods and services Percent change (Units) |
5.810 |
12.983 |
-3.388 |
0.415 |
0.661 |
|
Volume of exports of goods and services Percent change (Units) |
3.230 |
12.568 |
-2.156 |
-0.665 |
1.143 |
|
Unemployment rate Percent of total labor force (Units) |
4.625 |
3.875 |
4.025 |
4.275 |
4.100 |
|
Current account balance U.S. dollars (Billions) |
-13.738 |
-65.683 |
-66.322 |
-99.990 |
-105.536 |
|
Current account balance Percent of GDP (Units) |
-0.437 |
-2.102 |
-1.961 |
-2.787 |
-2.829 |
Estimates
Source: IMF Statistics - United Kingdom
Le Luxembourg et le pays
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
Convention from 24.05.1967 (Memorial 1968, A No.8, p.108)
Effective as of 01.01.1966 (Memorial 1968, A No.8, p.108)
Amendment to the Convention from 18.07.1978 (Memorial 1980, A No.22, p.382)
Effective as of 06.04.1975 (Memorial 1980, A No.22, p.382)
2nd Amendment to the Convention from 28.01.1983 (Memorial 1983, A No.104, p.2226)
Effective as of 01.01.1984 (Memorial 1983, A No.104, p.2226)
3rd Amendment to the Convention from 02.07.2009 (Memorial 2010, A No.51, p.830)
Effective as of 01.01.2011 (Memorial 2010, A No.51, p.830)
Air Services agreement
- Exchange of Notes from 24/27.05.1948
- Effective as of 27.05.1948
Memorandum of Understanding (June 2021)
Joint Declaration on Bilateral Cooperation:
Declaration (11 May 2023): Signed in London, this declaration emphasises cooperation in foreign policy, defence, security, human rights, economy and finance, climate change, energy, and mobility.
These agreements and declarations underscore the enduring and multifaceted relationship between Luxembourg and the United Kingdom, highlighting their commitment to collaboration across various sectors.
Informations supplémentaires
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country.
You can see the statistics on the website of the Statec.
Contact points in United Kindom
Embassy of the Grand Duchy of Luxembourg in United Kingdom
Ambassador with residence in London: Mr Georges Friden
27, Wilton Crescent
GB-London SWIX 8SD
United Kingdom
Tel.: (+44 -20) 7235 69 61; (+44 -20) 7235 69 62; (+44 -20) 7235 69 63
Fax: (+44 -20) 7235 97 34
E-Mail: londres.amb@mae.etat.lu
Website: londres.mae.lu
Honorary Consul
Honorary Consul with jurisdiction over Scotland:
Mr Peter HILLIER
Edinbourg Quay
133 Fountainbridge
EH3 9QG Edinburgh
Scotland
Tel.: (+44) 131 270 3001
E-Mail: edinburgh@consul-hon.lu
Source: Embassy of Luxembourg in London
