Liechtenstein
About Liechtenstein
Background:
The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleonic wars, it became a sovereign state in 1806 and joined the Germanic Confederation in 1815. Liechtenstein became fully independent in 1866 when the Confederation dissolved. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country's low taxes have spurred outstanding economic growth. In 2000, shortcomings in banking regulatory oversight resulted in concerns about the use of financial institutions for money laundering. However, Liechtenstein implemented anti-money-laundering legislation and a Mutual Legal Assistance Treaty with the US that went into effect in 2003.
PEOPLE
Population:
34,761 (July 2009 est.)
country comparison to the world: 210
Nationality:
noun: Liechtensteiner(s)
adjective: Liechtenstein
Ethnic groups:
Liechtensteiner 65.6%, other 34.4% (2000 census)
Religions:
Roman Catholic 76.2%, Protestant 7%, unknown 10.6%, other 6.2% (June 2002)
Languages:
German (official), Alemannic dialect
GOVERNMENT
Country Name:
conventional long form: Principality of Liechtenstein
conventional short form: Liechtenstein
local long form: Fuerstentum Liechtenstein
local short form: Liechtenstein
Government type:
constitutional monarchy
Capital:
name: Vaduz
geographic coordinates: 47 08 N, 9 31 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Independence:
23 January 1719 (Principality of Liechtenstein established); 12 July 1806 (independence from the Holy Roman Empire)
Flag description:
two equal horizontal bands of blue (top) and red with a gold crown on the hoist side of the blue band; the colors may derive from the blue and red livery design used in the principality's household in the 18th century; the prince's crown was introduced in 1937 to distinguish the flag from that of Haiti
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 the highest per capita income in the world. The Liechtenstein economy is widely diversified with a large number of small businesses. Low business taxes - the maximum tax rate is 20% - and easy incorporation rules have induced many holding 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 has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association (EFTA) and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe. Since 2008, Liechtenstein has come under renewed international pressure - particularly from Germany - to improve transparency in its banking and tax systems. Upon Liechtenstein's conclusion of 12 bilateral information-sharing agreements, the OECD in October 2009 removed the principality from its "grey list" of countries that had yet to implement the organization's Model Tax Convention.
GDP (purchasing power parity):
$4.16 billion (2007)
country comparison to the world: 166
$4.035 billion (2006 est.)
GDP - per capita (PPP):
$122,100 (2007 est.)
country comparison to the world: 1
Budget:
revenues: $424.2 million
expenditures: $414.1 million (1998 est.)
Inflation rate (consumer prices):
1% (2001)
country comparison to the world: 41
Industries:
electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instrumentss
Exports:
$2.47 billion
Imports:
$917.3 million
Exchange rates:
Swiss francs (CHF) per US dollar - 1.1081 (2009), 1.0774 (2008), 1.1973 (2007), 1.2539 (2006), 1.2452 (2005)
