Economy

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