Liechtenstein Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Despite its small size and lack of natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial services sector and one of the highest per capita income levels in the world. The Liechtenstein economy is widely diversified with a large number of small and medium-sized businesses, particularly in the services sector. Low business taxes - a flat tax of 12.5% on income is applied - 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 and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated EU. As of 2015, 54% of Liechtenstein’s workforce consisted of cross-border commuters, largely from Austria, Germany, and Switzerland.

Since 2008, Liechtenstein has faced renewed international pressure - particularly from Germany and the US - to improve transparency in its banking and tax systems. In December 2008, Liechtenstein signed a Tax Information Exchange Agreement with the US. Upon Liechtenstein's conclusion of 12 bilateral information-sharing agreements, the OECD in October 2009 removed the principality from its "grey list" of countries that had yet to implement the organization's Model Tax Convention. By the end of 2010, Liechtenstein had signed 25 Tax Information Exchange Agreements or Double Tax Agreements. In 2011, Liechtenstein joined the Schengen area, which allows passport-free travel across 26 European countries. In 2015, Liechtenstein and the EU agreed to clamp down on tax fraud and evasion and in 2018 will start automatically exchanging information on the bank accounts of each other’s residents.

Real GDP (purchasing power parity)

$4.978 billion (2014 est.)

$3.2 billion (2009 est.)

$3.216 billion (2008 est.)

Real GDP growth rate

1.8% (2012 est.)

-0.5% (2011 est.)

3.1% (2007 est.)

Real GDP per capita

$139,100 (2009 est.)

$90,100 (2008 est.)

$91,300 (2007 est.)

GDP (official exchange rate)

$6.672 billion (2014 est.)

Inflation rate (consumer prices)

-0.4% (2016 est.)

-0.2% (2013)

Credit ratings

Standard & Poors rating: AAA (1996)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 7% (2014)

industry: 41% (2014)

services: 52% (2014)

Agricultural products

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

Industries

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

Industrial production growth rate

N/A

Labor force

38,520 (2015 est.) (2012)

note: 51% of the labor force in Liechtenstein commute daily from Austria, Switzerland, and Germany

Labor force - by occupation

agriculture: 0.8%

industry: 36.9%

services: 62.3% (2015)

Unemployment rate

2.4% (2015)

2.4% (2014)

Population below poverty line

N/A

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 995.3 million (2012 est.)

expenditures: 890.4 million (2011 est.)

Budget surplus (+) or deficit (-)

1.6% (of GDP) (2012 est.)

Taxes and other revenues

14.9% (of GDP) (2012 est.)

Fiscal year

calendar year

Exports

$3.217 billion (2015 est.)

$3.774 billion (2014 est.)

note: trade data exclude trade with Switzerland

Exports - commodities

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

Imports

$2.23 billion (2014 est.)

note: trade data exclude trade with Switzerland

Imports - commodities

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

Debt - external

$0 (2015 est.)

note: public external debt only; private external debt unavailable

Exchange rates

Swiss francs (CHF) per US dollar -

0.9875 (2017 est.)

0.9852 (2016 est.)

0.9852 (2015 est.)

0.9627 (2014 est.)

0.9152 (2013 est.)

NOTE: The information regarding Liechtenstein on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Liechtenstein 2022 information contained here. All suggestions for corrections of any errors about Liechtenstein 2022 should be addressed to the CIA or the source cited on each page.