Following an almost total collapse of the Liechtenstein economy as a result of the First World War, Liechtenstein developed a strong tendency towards Switzerland.
Upon conclusion of the Customs Union Agreement between Liechtenstein and Switzerland as well as the adoption of the Swiss franc as national currency, the basis for the country's economic development was established. This was additionally fostered by the introduction of a modern and liberal corporate and tax law.
In the following decades Liechtenstein's' economy has been continuously growing due to the great political stability and the associated legal certainty and continuity.
Economic key factors
Today, the Liechtenstein economy is highly diversified.
In addition to strong local businesses and a global export industry, the financial services sector is of great importance to the country.
Although only 15% of the workforce is employed in this sector, it generates more than one third of the total value added to Liechtenstein's national economy.
Economics and Politics
Liechtenstein is a member of numerous international organizations such as the United Nations, the WTO, the Council of Europe, the OSCE and EFTA.
By joining the European Economic Area (EEA) in 1995, the country has gained access to the European single market while maintaining its traditionally close ties with Switzerland in a reconcilable manner.
As a globally oriented business location Liechtenstein has a vital interest in the worldwide implementation of internationally recognized standards, especially in the financial sector.
In this context, preventing abuses and combating money laundering and terrorist financing are top priorities for Liechtenstein. Therefore the International Monetary Fund recognizes Liechtenstein's efforts and attests a "high level of compliance".
The currently 15 Liechtenstein-based banks are mainly specialized in private banking.
The range of private Banking services is supplemented by investment fund and insurance business, which has developed sustainably in recent years.