Liechtenstein Economy - 2005

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:
purchasing power parity - $825 million (1999 est.)

GDP - real growth rate:
11% (1999 est.)

GDP - per capita:
purchasing power parity - $25,000 (1999 est.)

GDP - composition by sector:
agriculture: NA%
industry: 40%
services: NA% (1999)

Labor force:
29,000 of whom 19,000 are foreigners; 13,000 commute from Austria, Switzerland, and Germany to work each day (31 December 2001)

Labor force - by occupation:
agriculture 1.3%, industry 47.4%, services 51.3% (31 December 2001 est.)

Unemployment rate:
1.3% (September 2002)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
1% (2001)

Budget:
revenues: $424.2 million
expenditures: $414.1 million, including capital expenditures of NA (1998 est.)

Agriculture - 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:
NA%

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%

Imports:
$917.3 million (1996)

Imports - commodities:
agricultural products, raw materials, machinery, metal goods, textiles, foodstuffs, motor vehicles

Imports - partners:
EU, Switzerland

Debt - external:
$0 (2001)

Economic aid - recipient:
none

Currency (code):
Swiss franc (CHF)

Exchange rates:
Swiss francs per US dollar - 1.2435 (2004), 1.3467 (2003), 1.5586 (2002), 1.6876 (2001), 1.6888 (2000)