Luxembourg

Luxembourg: High-Income Economy With Modest Military Spending

Luxembourg's economy produced gross domestic product of $93,279,851,863.41 in 2024, per World Bank WDI, with a population of 677,012 in the same year. That combination yields a GDP per capita of $137,781.68 for 2024, per World Bank WDI. The IMF's World Economic Outlook projects government debt at 28.0% of GDP for 2026, a comparatively low level set against the size of the economy above. The IMF's International Financial Statistics records a reserves figure of $2,748,620,065.34 for 2025.

Military capacity

SIPRI's Military Expenditure database puts Luxembourg's military spending at $855,409,155.52 for 2025, equivalent to 0.851% of GDP for the same year on SIPRI's own GDP series — a figure drawn directly from SIPRI, not computed against the World Bank GDP series cited above. The Correlates of War National Material Capabilities dataset records zero active military personnel for 2022, with a Composite Index of National Capability (CINC) score of 0.00023691669 for the same year. The co-existence of recorded SIPRI spending with a zero Correlates of War personnel count points to a defense posture built around financial contribution and equipment rather than a large standing force, at least as captured across these two distinct datasets.

Governance

V-Dem's v15 dataset scores Luxembourg's electoral democracy at 0.869 and liberal democracy at 0.777 for 2025, with a state-capacity score of 0.979 for the same year. The state-capacity score of 0.979 is the highest among the three V-Dem measures in this bundle, indicating strong administrative functioning as assessed by V-Dem for 2025.

Energy

Our World in Data's Energy dataset records primary energy consumption of 0.1431 exajoules for 2024 and electricity generation of 1.54 terawatt-hours for 2025. Oil and gas production are both recorded at zero for 2016, indicating no domestic hydrocarbon extraction appears in this series despite the scale of the economy described above.

Data gaps

• Oil and gas production data date to 2016, the oldest figures in this bundle.
• Correlates of War records zero active personnel for 2022 alongside active SIPRI expenditure data for 2025, an apparent inconsistency the bundle does not resolve.

Sources: World Bank WDI; IMF WEO; IMF IFS; SIPRI Milex; V-Dem v15; Correlates of War National Material Capabilities; Our World in Data (Energy)