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 about 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 is a member of the European Economic Area (an organization serving as a bridge between 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 - $713 million (1996 est.)

GDP - real growth rate NA%

GDP - per capita purchasing power parity - $23,000 (1996 est.)

GDP - composition by sector
agriculture: NA%
industry: NA%
services: NA%

Inflation rate - consumer price index 0.5% (1997 est.)

Labor force
total: 22,891 of which 13,847 are foreigners; 8,231 commute from Austria and Switzerland to work each day
by occupation: industry, trade, and building 46%, services 52%, agriculture, fishing, forestry, and horticulture 2% (1996 est.)

Unemployment rate 1.6% (1997)

Budget
revenues: $455 million
expenditures: $435 million, including capital expenditures of $NA (1996 est.)

Industries electronics, metal manufacturing, textiles, ceramics, pharmaceuticals, food products, precision instruments, tourism

Industrial production growth rate NA%

Electricity - capacity 23,000 kW (1995)

Electricity - production 150 million kWh (1995)

Electricity - consumption per capita 8,000 kWh (1995 est.)

Agriculture - products wheat, barley, maize, potatoes; livestock, dairy products

Exports
total value: $2.47 billion (1996)
commodities: small specialty machinery, dental products, stamps, hardware, pottery
partners: EU and EFTA countries 60.57% (Switzerland 15.7%) (1995)

Imports
total value: $917.3 million (1996)
commodities: machinery, metal goods, textiles, foodstuffs, motor vehicles
partners: EU countries, Switzerland (1996)

Debt - external $0 (1996)

Economic aid none

Currency 1 Swiss franc, franken, or franco (SwF) = 100 centimes, rappen, or centesimi

Exchange rates Swiss francs, franken, or franchi (SwF) per US$1 - 1.4757 (January 1998), 1.4513 (1997), 1.2360 (1996), 1.1825 (1995), 1.3677 (1994), 1.4776 (1993)

Fiscal year calendar year

NOTE: The information regarding Liechtenstein on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Liechtenstein Economy 1998 information contained here. All suggestions for corrections of any errors about Liechtenstein Economy 1998 should be addressed to the CIA.