@Liechtenstein: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.)