International Trade in Liechtenstein

News Related to International Trade in Liechtenstein

Business outline for Liechtenstein

Economic Overview

The country has shown weak growth since 2008, a trend which should continue in the next few years due to the currently unfavorable economic climate. The country's economy is dominated by the financial and banking sectors, which are its main sources of income (around 30% in terms of shares of GDP) and it has been affected by the crisis.

Following the scandal showing Liechtenstein's status as a tax haven plus the financial crisis, the assets under the country's management experienced a value decrease of 19% in 2008. In November 2009, OECD has nevertheless removed the country from the non-cooperating countries blacklist. Liechtenstein is investing almost 5% of its income in research and development in order to create an advanced and competitive economy. 

Liechtenstein is a prosperous country which has the highest GDP per capita in the world and unemployment is limited to 2.7% of the population.

FDI in Figures

Foreign investment into Liechtenstein slowed down since 2008, mainly due to the financial crisis which affected the country. This economic situation should cause a decrease in foreign investment during the next following years. 

Due to its low corporate tax rates, the simplicity of its incorporation laws and strict regulations in banking matters, Liechtenstein has become a hub for international companies. Nevertheless, these also make the country vulnerable to money launderers.

The banking and financial services sectors attract most of FDI. The main investors are the countries of the European Union and Switzerland.

Foreign Trade Overview

The country is very open to international trade. In order to benefit from the EU market, Liechtenstein has joined the EEA (European Economic Area). Moreover, the government is slowly harmonizing its trade policy with that of the European Union.

Customs duties are low and there are extremely few trade barriers. Liechtenstein has formed a customs union with Switzerland and also uses the Swiss franc as its national currency. The main factors encouraging foreign trade include a very liberal economy, attractive tax systems and sophisticated infrastructural facilities. However, the country has a limited domestic market.

Liechtenstein exports much more than what it imports, a tendency that might continue in the next following years, in spite of the decrease in trade due to the crisis.

The country's top trading partners are Switzerland and the European Union.