World > Europe > Liechtenstein > Economy (Facts)

Liechtenstein - Economy (Facts)

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 - real growth rate: 11% (1999 est.) GDP (purchasing power parity): $1.786 billion (2001 est.) GDP (official exchange rate): $2.487 billion (2001) GDP - per capita (PPP): $25,000 (1999 est.) GDP - composition by sector: agriculture: 6% industry: 39% services: 55% (2001) 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% industry: 47% services: 51% (31 December 2001 est.) Unemployment rate: 1.3% (September 2002) Budget: revenues: $424.2 million expenditures: $414.1 million; including capital expenditures of NA (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) Currency: Swiss Franc (CHF) Current Swiss Franc Exchange Rates Historical Swiss Franc Exchange Rates Chart Swiss Franc Exchange Rates Currency code: CHF Exchange rates: Swiss francs per US dollar - 1.2539 (2006), 1.2452 (2005), 1.2435 (2004), 1.3467 (2003), 1.5586 (2002) Fiscal year: calendar year