Economy of Liechtenstein

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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 the urban areas of its large European neighbors. Low business taxes - the maximum tax rate is 18% - and easy incorporation rules have induced 73,700 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 European Free Trade Association (EFTA) and EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe.

GDP: purchasing power parity - $730 million (1998 est.)
GDP - per capita: purchasing power parity - $23,000 (1998 est.)
Inflation rate (consumer prices): 0.5% (1997 est.)
Labor force: 22,891 of which 13,847 are foreigners; 8,231 commute from Austria and Switzerland to work each day
Labor force - by occupation: industry, trade, and building 45%, services 53%, agriculture, fishing, forestry, and horticulture 2% (1997 est.)
Unemployment rate: 1.8% (February 1999)
Budget:
revenues: $424.2 million
expenditures: $414.1 million (1998 est.)
Industries: electronics, metal manufacturing, textiles, ceramics, pharmaceuticals, food products, precision instruments, tourism
Electricity - production: 150 million kWh (1995)
Agriculture - products: wheat, barley, corn, potatoes; livestock, dairy products
Exports: $2.47 billion (1996)
Exports - commodities: small specialty machinery, dental products, stamps, hardware, pottery
Exports - partners: EU and EFTA countries 60.57% (Switzerland 15.7%) (1995)
Imports: $917.3 million (1996)
Imports - commodities: machinery, metal goods, textiles, foodstuffs, motor vehicles
Imports - partners: EU countries, Switzerland (1996)
Debt - external: $0 (1996)
Economic aid - recipient: none
Currency: Swiss franc (CHF)

SOURCE: The World Factbook

Mother Earth Travel > Country Index > Liechtenstein > Map Economy