Liechtenstein Economy Profile 2008

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 living standards on a par with its large European neighbors. 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 or so-called letter box 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.

GDP (purchasing power parity)

$1.786 billion (2001 est.)

GDP (official exchange rate)

$36.33 billion (2007 est.)

GDP - real growth rate

11% (1999 est.)

GDP - per capita (PPP)

$25,000 (1999 est.)

GDP - composition by sector

agriculture: 7%
industry: 42%
services: 51% (2005)

Population below poverty line

NA%

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

1% (2001)

Labor force

29,500 of whom 13,900 commute from Austria, Switzerland, and Germany to work each day (31 December 2001)

Labor force - by occupation

agriculture: 2.1%
industry: 43.9%
services: 54% (2005)

Unemployment rate

1.3% (September 2002)

Budget

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

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 (1996)

Exports - commodities

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

Exports - partners

EU 62.6% (Germany 24.3%, Austria 9.5%, France 8.9%, Italy 6.6%, UK 4.6%), US 18.9%, Switzerland 15.7% (2006)

Imports

$917.3 million (1996)

Imports - commodities

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

Imports - partners

EU, Switzerland (2006)

Debt - external

$0 (2001)

Market value of publicly traded shares

$NA

Currency (code)

Swiss franc (CHF)

Exchange rates

Swiss francs per US dollar - 1.1973 (2007), 1.2539 (2006), 1.2452 (2005), 1.2435 (2004), 1.3467 (2003)

Fiscal year

calendar year