Editing Economy of Liechtenstein

{{Short description|none}}
{{Use dmy dates|date=May 2021}}
{{Update|inaccurate=yes|table|date=November 2010}}
{{Infobox economy
| country = Liechtenstein
| image = Vaduz.jpg
| image_size = 310px
| caption = [[Vaduz]]
| currency = [[Swiss franc]] (CHF)
| fixed exchange = 
| year = 
| organs = 
| group = [[Developed country|Developed/Advanced]]<br>[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>
| population = {{increase}} 40,457 (31 December 2023)<ref>{{cite web|title=Vergleich der alten Definition (seit 1999) und der neuen Definition (ab 2024) der Bevölkerung – Bevölkerungsstand per 31. Dezember 2023|url=https://www.statistikportal.li/de/themen/bevoelkerung/bevoelkerungsstand|website=statistikportal.li |publisher={{interlanguage link|Liechtensteinische Landesverwaltung|de}}|access-date=2 February 2025}}</ref>
| gdp = {{plainlist|
* {{decrease}} $7.362 billion (nominal, 2022)<ref>{{cite web|title=GDP (current US$) - Liechtenstein|url=https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=LI|website=data.worldbank.org|publisher=[[World Bank]]|access-date=2 February 2025}}</ref>
*$4.978 billion ([[Purchasing power parity|PPP]], 2014 {{abbr|est.|estimate}})<ref name="TWF">{{cite web |title=Liechtenstein |url=https://www.cia.gov/the-world-factbook/countries/liechtenstein/#economy |website=cia.gov |publisher=[[Central Intelligence Agency]] |access-date=27 September 2024}}</ref>}}
| growth = {{increase}} 1.8% (2011 {{abbr|est.|estimate}}){{cn|date=February 2025}}
| per capita = {{decrease}} $186,400 (nominal, 2022)<ref>{{cite web |title=GDP per capita (current US$) - Liechtenstein |url=https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=LI |website=data.worldbank.org |publisher=[[World Bank]] |access-date=27 September 2024}}</ref>
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 0.2%
*[[Secondary sector of the economy|industry]]: 42%
*[[Tertiary sector of the economy|services]]: 57.9%
*(2021)<ref name="Figures">{{cite web |title=Liechtenstein in Figures 2024 |url=https://www.statistikportal.li/statistikportal/publications/103-liechtenstein-in-figures/2024/01/1/103.2024.01.1_01_liechtenstein-in-figures-2024.pdf |website=statistikportal.li |publisher={{interlanguage link|Liechtensteinische Landesverwaltung|de}} |access-date=27 September 2024}}</ref>}}
| components = 
| inflation = 2.8% (2022)<ref name="Figures"/>
| poverty = 
| gini = 
| hdi = {{increase}} 0.942 {{color|darkgreen|very high}} (2022)<ref>{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=4 May 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|12th]])
| labor = {{increase}} 42,514 (31 December 2022), 57% of whom commute daily from Switzerland (59.8%), Austria (36.2%), Germany (2.8%) and others (1.2%)<ref name="Figures"/>
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 0.6%
*[[Secondary sector of the economy|industry]]: 35%
*[[Tertiary sector of the economy|services]]: 64.4%
*(31 December 2022)<ref name="Figures"/>}}
| unemployment = {{decreasePositive}} 1.3% (2022)<ref name="Figures"/>
| industries = Electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, financial services, food products, precision instruments, tourism, optical instruments
| exports = {{increase}} $3.76 billion (2011 est.)
| export-goods = Small specialty machinery, connectors for audio and video, parts for motor vehicles, watches, hardware, prepared foodstuffs, electronic equipment, optical products
| export-partners = n/av
| imports = {{increase}} $2.218 billion (2011 est.)
| import-goods = Agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, motor vehicles
| import-partners = 
| FDI = 
| gross external debt = 0% (2001) debt holder of Switzerland, Austria and US
| debt = N/A
| revenue = $1.29 billion (2011 est.)
| expenses = $1.372 billion (2011 est.)
| aid = 
| credit = [[Standard & Poor's]]:<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011}}</ref><br />AAA (Domestic)<br />AAA (Foreign)<br />AAA (T&C Assessment)<br />Outlook: Stable<ref name=guardian>{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |url=https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |access-date=31 May 2011}}</ref>
| reserves = 
| cianame = liechtenstein
| spelling = 
}}
The '''economy of [[Liechtenstein]]''' is based on industry, with a small but significant agricultural sector, and services (especially general services, including tourism and information technology). The country participates in a customs union with [[Switzerland]] and uses the [[Swiss franc]] as its national currency. It imports more than 85% of its energy requirements. Liechtenstein has been a member of the [[European Free Trade Association]] (EFTA) since 1991 (previously its interests had been represented by Switzerland). It also has been a member of the [[European Economic Area]] (EEA) since May 1995 and participates in the [[Schengen Agreement]] for passport-free intra-European travel.

== History ==
Liechtenstein's historical customs union with Austria was dissolved in 1919. A customs treaty was signed in 1923 and since its entering into force in 1924, Liechtenstein and Switzerland have been in a [[customs union]] with each other and as such the borders between the two countries are open. The German village [[Büsingen am Hochrhein]] and the Italian village [[Campione d'Italia]] also form part of this customs union (the latter albeit in a ''de facto'' manner), which is often referred to as the ''Swiss customs area''.

Liechtenstein utilizes the Swiss franc as its national currency. Swiss border police and customs officers secure its frontier with [[Austria]]. Currently there are 21 Swiss border guards stationed in Liechtenstein and 20 Austrian border guards securing its border ([[Law enforcement in Liechtenstein|as of 2011]]).

Liechtenstein is a member of [[EFTA]], and joined the [[European Economic Area]] (EEA) in 1995 in order to benefit from the [[European Union|EU]] internal market. The capitalist economy and tax system make Liechtenstein a safe, trustworthy and success-oriented place for private and business purposes, especially with its highly modern, internationally laid-out infrastructure and close connections to Switzerland.

In the last half century, Liechtenstein has developed from a mainly agricultural state to one of the most highly industrialized countries in the world.<ref>{{cite journal |title=Backgr. Notes Ser. Liechtenstein |url=https://pubmed.ncbi.nlm.nih.gov/12178078/ |journal=Department of State Publication. Background Notes Series |year=1989 |publisher=United States. Department of State. |pmid=12178078 |access-date=9 November 2022|author1=United States. Department of State. Bureau of Public Affairs |pages=1–4 }}</ref>

== Foreign trade ==
[[File:HK Yaumatei 咸美頓街 Hamilton Street 喜利得門市部 HILTI shop evening.jpg|thumb|left|250px|An office of the [[Hilti Corporation]] in [[Hong Kong]] pictured in March 2010, an example of [[Liechtenstein]]'s export economy]]

Besides its efficient industry, there also is a strong services sector. Four out of ten employees work in the services sector, a relatively high proportion of whom are foreigners, including those who commute across the border from neighboring Switzerland, Austria and Germany. Industrial exports more than doubled in 20 years from $1.21 billion (SFr. 2.2 billion) in 1988 to $2.9 billion (SFr. 4.6 billion) in 2008. Some 15.7% of Liechtenstein goods are exported to Switzerland, 62.6% to the EU and 21.1% to the rest of the world.<ref>{{cite web|url=https://customsdutyfree.com/liechtenstein-trade-statistics/|title=Liechtenstein – Trade Statistics|date=23 March 2017 |access-date=3 March 2021}}</ref>{{citation needed|date=July 2020}}

The [[United States]] has been the most important [[export]] market for Liechtenstein in recent times, totaling $561 million (SFr. 876 million); Germany is second, with $479 million (SFr. 748 million) worth of imports, and Switzerland third, with $375 million (SFr. 587 million).

About 32% of the country's revenues are invested in research and development, one of the driving forces of the success of Liechtenstein's economy. Total R&D spending in 2000 rose by 20.7% to approximately $140 million (213 million francs).<ref>{{Cite web|title=Liechtenstein (11/03)|url=https://2009-2017.state.gov/outofdate/bgn/liechtenstein/35889.htm|access-date=2021-03-16|website=U.S. Department of State}}</ref>

== Banking and finance ==
[[File:National Bank of Liechtenstein.JPG|thumb|[[National Bank of Liechtenstein]]]]

The Principality of Liechtenstein also is known as an important financial centre, primarily because it specializes in financial services for foreign entities. The country's low tax rate, loose incorporation and corporate governance rules, and traditions of strict [[bank secrecy]] have contributed significantly to the ability of financial intermediaries in Liechtenstein to attract funds from outside the country's borders. The same factors made the country attractive and vulnerable to money launderers, although late 2009 legislation has strengthened regulatory oversight of illicit funds transfers.<ref>{{Cite web |title=Liechtenstein (06/09) |url=https://2009-2017.state.gov/outofdate/bgn/liechtenstein/125077.htm |access-date=2023-07-28 |website=U.S. Department of State}}</ref>

Liechtenstein has chartered 17 banks, three non-bank financial companies, and 71 public investment companies, as well as insurance and reinsurance companies. Its 270 licensed fiduciary companies and 81 lawyers serve as nominees for, or manage, more than 73,000 entities (primarily corporations, institutions, or trusts), partly for non-Liechtenstein residents. About one-third of these entities hold the controlling interest in other entities, chartered in countries other than Liechtenstein. The Principality's laws permit the corporations it charters to issue bearer shares. Until recently, the Principality's banking laws permitted banks to issue numbered accounts, but new regulations require strict know-your-customer practices for all new accounts.<ref>{{Cite web|title=FMA - Anti-money laundering|url=https://www.fma-li.li/en/regulation/anti-money-laundering.html|access-date=2021-11-17|website=www.fma-li.li}}</ref>

== Taxation ==
[[File:5 kronen Johann II of Liechtenstein 1904.png|thumb|250px|[[Silver coin]]: 5 kronen of [[Liechtenstein]], 1904, the front of the coin is a portrait of Johann II]]
Liechtenstein's standard rate of [[VAT]] (Mehrwertsteuer) is identical to Switzerland's for it must mirror the latter's continually and is currently 7.7%. The reduced rate is 2.5%. A special rate of 3.7% is in use in the hotel industry.<ref>{{Cite web|url=https://www.vatlive.com/vat-news/liechtenstein-cuts-vat-to-7-7-2018/|title = Avalara VATlive}}</ref>

In July 2015, Liechtenstein and Switzerland signed a new agreement on [[double taxation]], which took effect in December 2016, superseding the previous one from 1995. Some differences on the [[withholding tax]] arose, but Switzerland did not agree to introduce this practice to residents of Liechtenstein working in Switzerland.<ref>[https://www.nzz.ch/schweiz/liechtenstein-scheitert-mit-quellensteuer-fuer-grenzgaenger-1.18476756 Liechtenstein scheitert mit Quellensteuer für Grenzgänger](in German). ''Neue Zürcher Zeitung (Schweiz)''. Retrieved 10 December 2017.</ref>

In November 2016, the parliament of the principality decided with a large majority to introduce an agreement of automatic information exchange with 27 new treaty partners, including Switzerland. Data collection will start in 2018, and effectual exchange of account information is planned for 2019.<ref>[https://www.blick.ch/news/ausland/informationsaustausch-liechtenstein-und-schweiz-tauschen-kontoinformationen-aus-id7580999.html Liechtenstein und Schweiz tauschen Kontoinformationen aus](in German). Blick online. Retrieved 10 December 2017.</ref>

== Statistics ==
*'''GDP (PPP):''' $4.826 billion (2009)
*'''GDP – real growth rate:''' 3.8% (2008)
*'''GDP (PPP) – per capita:''' purchasing power parity – $141,100 (2008)
*'''Inflation rate (consumer prices):''' 0.7% (2011)
*'''Labor force:''' 35,440 of whom about 10,440 are natives 7,550 are foreigners; 17,450 commute from Austria, Switzerland, and Germany to work each day (2008)
*'''Labor force – by occupation:''' agriculture: 8%; industry: 41%; services: 51% (31 December 2008)
*'''Unemployment rate:''' 1.9% (December 2020)<ref>{{cite web |title=Unemployment rate and employment data in Liechtenstein |url=https://take-profit.org/en/statistics/unemployment-rate/liechtenstein/ |website=take-profit.org |access-date=7 June 2022}}</ref>
*'''Currency:''' [[Swiss franc]] (CHF)
*'''Exchange rates:''' Swiss francs per US dollar – 1.3467 (2003), 1.5586 (2002), 1.6876 (2001), 1.6888 (2000), 1.5022 (1999)
*'''Fiscal year:''' calendar year

===State budget===
*'''revenues:''' $420.8 million
*'''expenditures:''' $420.1 million, including capital expenditures of $NA (2000 est.)

=== Industries ===
The principal industries are electronics, metal manufacturing, textiles, ceramics, pharmaceuticals, food products, precision instruments, and tourism.<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/liechtenstein/|title=The World Factbook — Central Intelligence Agency|website=www.cia.gov|language=en|access-date=2017-08-03}}</ref>

*'''Industrial production growth rate:''' N/A

===Electricity===
{{Main|Energy in Liechtenstein}}

*'''production by source'''{{Citation needed|date=September 2015}}
**''fossil fuel:'' 3,330 MWh (3.12%)
**''hydro:'' 76,166 MWh (94.2%){{Citation needed|date=September 2015}}
**''nuclear:'' none (0%)
**''solar/wind:'' 1,361 MWh (2.68%){{Citation needed|date=September 2015}}
*'''Electricity – production:''' 80,105 MWh (2010)
*'''Electricity – consumption:''' about 350,645 MWh (2010)
*'''Electricity – exports:''' none
*'''Electricity – imports:''' about 270,540 MWh (2010)

===Agriculture===
*'''Products'''
** [[wheat]], [[barley]], [[maize|corn]], [[potato]]es; [[livestock]], [[dairy products]]

===Exports===
*'''Commodities:''' small specialty machinery, dental products, stamps, hardware, pottery
*'''Partners:''' [[European Union|EU]] 62.6%, Others 21.1% ([[Germany]], the [[United States|US]], the [[United Kingdom|UK]], [[France]], [[Italy]], [[Austria]], [[Taiwan]] and [[Japan]]), [[Switzerland]] 15.7% as of (2008)

===Imports===
*'''Commodities:''' agricultural products, raw materials, machinery, metal goods, textiles, foodstuffs, motor vehicles
*'''Partners:''' [[member states of the European Union]], [[Switzerland]], [[Germany]] and the US.

===Companies===
In 2022, the sector with the highest number of companies registered in Liechtenstein is Services with 7,666 companies followed by Finance, Insurance, and Real Estate and Unknown industry with 5,240 and 3,104 companies respectively.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/liechtenstein | title=Industry Breakdown of Companies in Liechtenstein | website=HitHorizons}}</ref>

== See also ==

*[[Healthcare in Liechtenstein]]
*[[List of foundations established in Vaduz]]
*[[List of companies of Liechtenstein]]

== References ==
{{Reflist}}

{{Liechtenstein topics}}
{{Economy of Europe}}
{{World Trade Organization}}

{{DEFAULTSORT:Economy of Liechtenstein}}
[[Category:Economy of Liechtenstein| ]]
[[Category:European Free Trade Association|Liectenstein]]
[[Category:World Trade Organization member economies|Liechtenstein]]
[[Category:Economies of Europe by country|Liechtenstein]]