Italy Italy vs Luxembourg Luxembourg development indicators, 2024

Indicator
Italy
Italy, Value
Luxembourg
Luxembourg, Value
Italy
Italy, Rank
Luxembourg
Luxembourg, Rank
Italy Italy as % of
Luxembourg Luxembourg
Current account balance (% of GDP) 1.13 13.8 45 7 8.16 %
Exports of goods and services (% of GDP) 32.7 216 77 1 15.2 %
GDP per capita (current US$) 40,226 137,517 28 2 29.3 %
GDP per capita, PPP (current international US$) 60,847 150,772 30 1 40.4 %
Imports of goods and services (% of GDP) 30.4 183 96 1 16.7 %
Inflation, consumer prices (annual %) 0.982 2.05 141 112 47.9 %
Net migration 95,246 5,677 19 53 1,678 %
Population, total 58,986,023 677,717 25 167 8,704 %

Demography and Health

Italy has a crude birth rate of 6.4 per 1,000 people, which ranks it 81st globally, while Luxembourg's birth rate stands higher at 9.5, ranking 28th. In contrast, the crude death rate in Italy is 11.2 per 1,000 people, ranking 38th, compared to Luxembourg’s lower rate of 6.6, which is ranked 80th. Life expectancy at birth is slightly higher in Italy at 83.7 years, placing it 2nd, compared to Luxembourg at 83.4 years, ranking 4th. The under-5 mortality rate in Italy is 2.8 per 1,000 live births, compared to Luxembourg's 2.3, indicating a slightly better child health outcome in Luxembourg. The prevalence of undernourishment is the same in both countries, at 2.5%, and both countries reflect challenges related to mental health, with suicide mortality rates of 7 per 100,000 in Italy and 8.2 in Luxembourg.

Economy

Italy's GDP per capita stands at $40,226, placing it 42nd, while Luxembourg leads significantly with a staggering $137,517, ranking it 1st globally. In terms of purchasing power parity, Italy’s GDP per capita is $60,847, compared to Luxembourg’s $150,772, indicating greater economic disparity. Italy's current account balance is at 1.1% of GDP, while Luxembourg enjoys a robust 13.8%, reflecting stronger external economic health. Italy's high-technology exports amount to $52.2 billion, placing it 15th, whereas Luxembourg’s high-technology exports are minimal at $801.2 million, ranking 79th. Both countries are relatively competitive in inflation, with Italy at 1% and Luxembourg at 2.1%, but Italy faces a higher unemployment rate of 7.6% compared to Luxembourg's lower rate of 5.2%.

Trade and Investment

Italy exports about 32.7% of its GDP, while Luxembourg's exports are remarkably higher at 216% of its GDP, underscoring its role as a global trading hub. Italy’s imports are at 30.4% of GDP, which is lower than Luxembourg’s 183%, indicating its dependency on foreign goods and services compared to Luxembourg's highly open economy. The logistics performance index shows that both countries are competitive, with Italy scoring 3.8 (ranked 8th) and Luxembourg at 3.6 (ranked 13th), suggesting robust infrastructure in trade and transport.

Governance and Institutions

In terms of governance, Luxembourg surpasses Italy in most metrics. The Control of Corruption index shows Italy scoring 0.6 (ranked 53rd) and Luxembourg at 1.9 (ranked 11th). Similarly, Government Effectiveness gives Italy a score of 0.6 (58th), while Luxembourg scores significantly higher at 1.9 (5th). Italy struggles with regulatory quality, scoring 0.6 (63rd), compared to Luxembourg's impressive 1.9 (1st). Rule of Law is another area where Italy lags, scoring 0.4 (69th), in stark contrast to Luxembourg’s score of 1.8 (8th). Political Stability is also rated higher in Luxembourg (1.1, 3rd) than in Italy (0.6, 53rd), indicating a stronger stable governance environment in Luxembourg.

Infrastructure and Technology

Italy leads in the number of patent applications with 10,281 compared to just 112 in Luxembourg, ranking Italy 3rd and Luxembourg 20th. This highlights Italy's stronger emphasis on innovation and technological advancement. However, when it comes to research and development expenditure as a percentage of GDP, Italy is at 1.4%, ranking 35th, while Luxembourg spends 1% of GDP in this area, ranking significantly lower at 42nd. The logistics performance index, as noted earlier, shows Italy's better trade and transport-related infrastructure quality (3.8) compared to Luxembourg (3.6), indicating better performance in logistical aspects despite Luxembourg's advanced economy.

Environment and Sustainability

In terms of environmental sustainability, Italy uses 17.5% of its total final energy consumption from renewable sources, compared to Luxembourg’s 20.5%, reflecting a slightly better commitment in Luxembourg. However, the total greenhouse gas emissions per capita indicate that Italy at 6.3 t CO2e/capita has a better footprint compared to Luxembourg's 11.8 t CO2e/capita, ranking Italy 62nd and Luxembourg 4th. Notably, Italy faces a higher level of water stress, with freshwater withdrawal accounting for 29.6% of available resources, while Luxembourg reports only 4%, highlighting Luxembourg’s effective water management. The two nations share the same prevalence of undernourishment but differ significantly in environmental action, posing challenges for Italy’s sustainable development initiatives.