Economy

Despite its small geographic area and limited natural resources, Liechtenstein is currently one of the few countries in the world with more registered companies than citizens; it has developed into a prosperous, highly industrialized, free-enterprise economy, and boasts a financial service sector and also living standard which compare favourably to those of the urban areas of Liechtenstein's large European neighbours. Advantageously low business taxes - the maximum tax rate is 18% - as well as easy Rules of Incorporation have induced about 73,700 holding (or so-called 'letter box') companies to establish nominal offices in Liechtenstein. Such processes provide about 30% of Liechtenstein's state revenue.

Recently, Liechtenstein has shown strong determination to prosecute any international money-laundering and worked to promote the country's image as a legitimate financing centre.

Liechtenstein participates in a customs union with Switzerland and employs the Swiss franc as national currency. The country imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organisation serving as a bridge between the European Free Trade Association (EFTA) and the European Union) since May 1995. The government is working to harmonise its economic policies with those of an integrated Europe. Since 2002, Liechtenstein's rate of unemployment has doubled, although it stood at only 2.2% in the third quarter of 2004. Currently, there is only one hospital in Liechtenstein, the Liechtensteinisches Landesspital in Vaduz. The GDP (PPP) is $1.786 billion and $54,000 per person.

In 2001, 6% of the GDP came from agriculture, 39% from industry and 55% from services. Major import partners in 2006 were the EU and Switzerland (mainly agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs and motor vehicles). The EU made up the majority of the countries export partners (Germany 24.3%, Austria 9.5%, France 8.9%, Italy 6.6%, UK 4.6%), with the US (18.9%) and Switzerland (15.7%) making up the remainder. Exports included small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment and optical products.

Liechtenstein's most recognizable international company and largest employer is Hilti, a manufacturer of concrete fastening systems. Liechtenstein is also the home of the Curta calculator.