Stock Market Capitalization to GDP for Luxembourg

DDDM01LUA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

70.30

Year-over-Year Change

-37.90%

Date Range

1/1/1975 - 1/1/2020

Summary

The stock market capitalization to GDP ratio measures the total value of a country's publicly traded stocks relative to its overall economic output. This metric provides insight into the size and development of a nation's stock market compared to the broader economy.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The stock market capitalization to GDP ratio is a key indicator of a country's financial development and can be used to assess the relative importance of the stock market within an economy. It serves as a gauge of market depth and can help identify potential over- or undervaluation of equities.

Methodology

The data is calculated by dividing the total market capitalization of all publicly traded companies by the country's gross domestic product.

Historical Context

This ratio is closely monitored by economists, policymakers, and investors to evaluate a country's financial system and investment climate.

Key Facts

  • Luxembourg has one of the highest stock market capitalization to GDP ratios in the world.
  • The ratio has remained above 100% for most of the past two decades.
  • The large size of Luxembourg's stock market relative to its economy reflects the country's role as a major financial center.

FAQs

Q: What does this economic trend measure?

A: The stock market capitalization to GDP ratio measures the total value of a country's publicly traded stocks compared to its overall economic output.

Q: Why is this trend relevant for users or analysts?

A: This metric provides insight into the size and development of a nation's stock market relative to the broader economy, which is useful for assessing financial system depth and investment climate.

Q: How is this data collected or calculated?

A: The data is calculated by dividing the total market capitalization of all publicly traded companies by the country's gross domestic product.

Q: How is this trend used in economic policy?

A: Economists and policymakers closely monitor this ratio to evaluate a country's financial system and investment climate, which can inform policy decisions.

Q: Are there update delays or limitations?

A: The data is updated periodically by the U.S. Federal Reserve and may be subject to revisions or lags in availability.

Related Trends

Citation

U.S. Federal Reserve, Stock Market Capitalization to GDP for Luxembourg (DDDM01LUA156NWDB), retrieved from FRED.