Principality of Liechtenstein: Selected Issues

IMF Staff Country Reports, March 27, 2025

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Principality of Liechtenstein: Selected Issues

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Bibliographic details

• Published: March 27, 2025
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798229005791.002

Overview and purpose

• Focus: cross-border income flows in Liechtenstein.
• Objective: examine drivers of the GDP–GNI gap using currently available data to provide broader context for Liechtenstein’s high per capita income.
• Analytical lens emphasized: the country’s unique structure, notably the significant presence of cross-border commuters and foreign investments by Liechtenstein residents.

Key findings

• The gap between Gross Domestic Product (GDP) and Gross National Income (GNI) in Liechtenstein is significant.
• Drivers of the GDP–GNI gap highlighted:
  • A high percentage of cross-border commuters.
  • Globally competitive manufacturers contributing to high GDP per capita.
  • Foreign investments by Liechtenstein residents.
• Comparative magnitude and volatility:
  • The GDP–GNI gap is among the largest among major economies and comparable in magnitude to Ireland and Luxembourg—but is more volatile.
• Primary source of the gap:
  • Largely due to net outflows to foreign workers.
  • Not primarily due to multinational corporations domiciling operations in the country for financial reasons.

Implications for analysis and policy

• Economic developments in Liechtenstein should be analyzed through an alternate lens that accounts for:
  • The significant presence of commuters.
  • The role of foreign investments by Liechtenstein residents.
• Interpreting standard per capita measures (GDP per capita) without considering the GDP–GNI gap may misrepresent resident income and welfare.

Publication metadata and dimensions

• Publication title: Principality of Liechtenstein: Selected Issues
• Publication date: March 27, 2025
• Pages: 46
• Volume: 2025
• Issue: 077
• Series: Country Report No. 2025/077
• Stock No: 1LIEEA2025002
• DOI: https://doi.org/10.5089/9798229005791.002
• ISBN: 9798229005791
• ISSN: 1934-7685

Source: Principality of Liechtenstein: Selected Issues (IMF Staff Country Report, March 27, 2025).

Content in this bundle

• Principality of Liechtenstein: Selected Issues; IMF Country Report No. 25/77; March 5, 2025
  • Principality of Liechtenstein: Selected Issues; IMF Country Report No. 25/77; March 5, 2025 (Markdown version)
  • Principality of Liechtenstein: Selected Issues; IMF Country Report No. 25/77; March 5, 2025 (PDF)