Economics and Agribusiness in Liechtenstein

The Principality of Liechtenstein is a constitutional monarchy located in the Alps region of Western Europe, alongside the Rhine River Valley. Likewise, it is one of the smallest countries in the world and one of two doubly landlocked countries, which means that it is itself surrounded by countries that are also landlocked. Lichtenstein has a cool continental climate with frequent rain and snow precipitation as well as high levels of humidity.

Liechtenstein has been independent since 1866, but it has always had very close political and economic relationships with its only two neighbors, Switzerland and Austria. Liechtenstein is also well known as a fiscal paradise and hub for European businesses, having more registered companies than natural citizens. Currently, the country has a population of approximately 38.300 citizens, about 14% of which live in an urban setting, notably the capital city of Vaduz with some 5.000 inhabitants. Similarly, the median age in Liechtenstein is 43 years. Today, the country has a total territory of 160 square kilometers, which is slightly smaller than Washington DC. Furthermore, Liechtenstein is one of the few countries in the world not to have standing armed forces.

Economics and Agribusiness in Liechtenstein

Liechtenstein has an economy of over US$5 billion (PPP) that is divided into 7% agriculture, 41% manufacturing, and 52% services. Likewise, it is estimated that the agricultural industry employs 1% of the national labor force, while manufacturing employs 37% and services employ another 62%. Meanwhile, the agriculture industry utilizes 38% of the national territory, while another 43% is forested. In terms of natural resources, Liechtenstein has large hydroelectric power potential and arable land. Within manufacturing, the national industry is focused on electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, and optical instruments. Similarly, a large sector of the Liechtenstein economy is dependent on tourism and financial services. Simultaneously, the country’s agricultural industry has as main products wheat, barley, corn, potatoes, livestock, and dairy products.

In terms of trade, Liechtenstein is in a customs union with Switzerland and uses the Swiss Franc as its national currency. Furthermore, Liechtenstein is a member of the European Free Trade Association, alongside Norway, Iceland, and Switzerland, as well as a member of the European Economic Area, which brings together the European Union and EFTA markets. During 2015, the country imported approximately US$2 billion and exported some US$3.2 billion, mainly to and from fellow European countries.

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