Liechtenstein Economy Profile 2009

Economy - overview

Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial service sector and the highest per capita income in the world. The Liechtenstein economy is widely diversified with a large number of small businesses. Low business taxes - the maximum tax rate is 20% - and easy incorporation rules have induced many holding companies to establish nominal offices in Liechtenstein, providing 30% of state revenues. The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association (EFTA) and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe. In 2008 Liechtenstein came under renewed international pressure - particularly from Germany - to improve transparency in its banking and tax systems.

GDP (purchasing power parity)

$4.16 billion (2007)
$4.035 billion (2006 est.)

GDP (official exchange rate)

$4.993 billion (2007)

GDP - real growth rate

3.1% (2007 est.)

GDP - per capita (PPP)

$118,000 (2007 est.)

GDP - composition by sector

agriculture: 8%
industry: 39%
services: 54% (2007)

Population below poverty line

NA%

Labor force

32,440 of whom 13,900 commute from Austria, Switzerland, and Germany to work each day (2007)

Labor force - by occupation

agriculture: 1.7%
industry: 43.5%
services: 55.4% (31 December 2006)

Unemployment rate

1.5% (31 December 2007)
1.3% (September 2002)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Budget

revenues: $424.2 million
expenditures: $414.1 million (1998 est.)

Inflation rate (consumer prices)

1% (2001

Industries

electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instruments

Industrial production growth rate

NA%

Agriculture - products

wheat, barley, corn, potatoes; livestock, dairy products

Exports

$2.47 billion

Exports - commodities

small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment, optical products

Imports

$917.3 million

Imports - commodities

agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, motor vehicles

Debt - external

$0 (2001)

Market value of publicly traded shares

$NA

Currency (code)

CHF

Currency (code)

Swiss franc (CHF)

Exchange rates

Swiss francs (CHF) per US dollar - 1.0774 (2008 est.), 1.1973 (2007), 1.2539 (2006), 1.2452 (2005), 1.2435 (2004)

Fiscal year

calendar year