Belgium vs Luxembourg development indicators, 2024

Demography and Health

In terms of demography, Belgium has a population of approximately 11.9 million, whereas Luxembourg has about 677,717 inhabitants. The birth rates are slightly higher in Luxembourg at 9.5 per 1,000 people compared to Belgium's 9.4. Conversely, the death rate is notably higher in Belgium at 9.4 per 1,000 people, compared to Luxembourg's 6.6, indicating better health outcomes in Luxembourg. Life expectancy at birth is also higher in Luxembourg, with 83.4 years compared to Belgium's 82.4 years, suggesting a healthier life overall. Both countries have similar undernourishment rates at 2.5%, but the under-five mortality rate is lower in Luxembourg (2.3) than in Belgium (3.6), indicating more effective healthcare for young children. The suicide mortality rate is higher in Belgium at 18.4 per 100,000 population versus 8.2 in Luxembourg, pointing to potential mental health challenges in Belgium.

Economy

Economically, Belgium and Luxembourg present contrasting scenarios. Belgium's GDP per capita stands at $55,955, ranking 21st globally, whereas Luxembourg's GDP per capita is significantly higher at $137,517, ranking 1st. The purchasing power parity (PPP) further reflects this disparity, with Belgium at $72,126 (16th) and Luxembourg leading at $150,772 (1st). Regarding inflation, Belgium has a higher annual consumer price inflation rate of 3.1% compared to Luxembourg's 2.1%. Notably, revenue from high-technology exports demonstrates a stark contrast, with Belgium exporting $50.6 billion and Luxembourg at only $801.2 million. The unemployment rates are relatively close, with Belgium slightly higher at 5.5% compared to Luxembourg's 5.2%, indicating a stable job market in both countries.

Trade and Investment

Trade and investment figures starkly highlight Belgium's role as an export-oriented economy. Exports of goods and services as a percentage of GDP are at 79.2% for both countries, showcasing Belgium's significant integration into global markets, yet Luxembourg dominates in imports, with 183% of GDP, which indicates a heavy reliance on international trade. In terms of current account balance, Luxembourg showcases a strong surplus of 13.8% compared to Belgium's deficit of -0.9%, pointing towards Luxembourg's robust economic management and investment-friendly environment. Belgium ranks 39th globally in exports, while Luxembourg holds the 4th position, indicating its efficient trade networks.

Governance and Institutions

In terms of governance and institutions, Belgium generally fares lower than Luxembourg across various indicators. Luxembourg outperforms Belgium in the Control of Corruption metric, scoring 1.9 against Belgium's 1.3 (27th vs. 11th rank). Similarly, Government Effectiveness leans in favor of Luxembourg, with a score of 1.9 compared to Belgium's 1, reflecting a more efficient bureaucratic process. Political stability is yet another area where Luxembourg excels, scoring 1.1 versus Belgium's 0.4, indicating a more secure and stable political environment. Regulatory quality and the rule of law follow the same trend, with Luxembourg scoring higher. These elements suggest that Luxembourg's governance framework is favorable for both its citizens and foreign investors.

Infrastructure and Technology

On the infrastructure front, Belgium leads slightly with a logistics performance index of 4.1, ranking it 5th globally, compared to Luxembourg’s 3.6, which ranks 13th. This indicates that Belgium has better trade and transport-related infrastructure, essential for economic activities and enhancing trade relationships. However, Belgium's research and development expenditure as a percentage of GDP is notably high at 3.4% (2nd rank), compared to Luxembourg's 1%, highlighting the former's commitment to innovation and technological advancement.

Environment and Sustainability

Environmentally, both countries have different challenges and successes. Belgium consumes 11.7% of its total final energy from renewable sources, while Luxembourg surpasses this significantly at 20.5%. When considering greenhouse gas emissions, Belgium's emissions per capita stand at 9 tons CO2e, while in Luxembourg it is higher at 11.8 tons CO2e, indicating a need for improvements in Luxembourg’s environmental policies. The level of water stress is considerably higher in Belgium, with a withdrawal rate of 51.9%, compared to Luxembourg’s 4%, suggesting better management of freshwater resources in Luxembourg. Overall, while both countries are making strides towards sustainability, there are areas where improvements can be made, particularly for Belgium in environmental management.