-resident US Ambassador to Liechtenstein

Flag description: two equal horizontal bands of blue (top) and red
with a gold crown on the hoist side of the blue band

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 25,000 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: 0.8% (1996 est.)

Labor force:
total: 22,187 of which 13,576 are foreigners; 7,781 commute from
Austria and Switzerland to work each day
by occupation : industry, trade, and building 45%, services 53%,
agriculture, fishing, forestry, and horticulture 2% (1995 est.)

Unemployment rate: 1.1% (1996)

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: $2.14 billion (1994)
commodities: small specialty machinery, dental products, stamps,
hardware, pottery
partners: EU and EFTA countries 60.57% (Switzerland 15.7%) (1995)

Imports:
total value : $852.3 million (1994)
commodities: machinery, metal