## Liechtenstein: Five Things You May Not Know About the IMF’s Newest Member

_IMF News, October 21, 2024_

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## Bibliographic details
- Authors: Rodgers Chawani, Kazuko Shirono October
- Published: October 21, 2024

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### Overview
- The IMF welcomed the Principality of Liechtenstein as its 191st member.  
- Prime Minister Daniel Risch signed the IMF’s Articles of Agreement in a ceremony in Washington, D.C at the beginning of the 2024 Annual Meetings, and the country now attends the Annual Meetings as a full member.
- Authors: Rodgers Chawani (senior economist) and Kazuko Shirono (deputy chief), both in the IMF's European Department.

### Geography and demographics
- Liechtenstein is one of only two doubly landlocked countries worldwide, along with Uzbekistan.
- Total area: 160 sq. km, comparable to the size of the city of Washington D.C.
- Location: between Austria and Switzerland in the Alps; a winter sports destination.
- Population: about 40,000 people (noted as “about 40,000”).
- Vaduz is the best-known city, but Schaan has a larger population.
- Among six smallest European states—Andorra, Malta, Monaco, San Marino, and Vatican City—Liechtenstein has the third-largest total area.

### Political structure and public administration
- Constitutional form: parliamentary constitutional principality; the 1921 constitution defines the principality as “a constitutional, hereditary monarchy on a democratic and parliamentary basis.”
- Government: a five-member cabinet nominated by parliament and appointed by the prince for a four-year term.
- Parliament: Twenty-five members serving a four-year term.
- Civil service: 1,500 civil servants, less than 4 percent of the population, significantly lower than the EU average of about 17 percent.

### Income, economic structure, and competitiveness
- Per capita income: US$197K/year, the second highest per capita income in Europe, behind Monaco.
- Research and development: 6.2 percent of GDP.
- Industry:
  - Share of industry: 42 percent of gross value added, well above the EU average (about 15 percent).
  - Manufacturing strengths: machine and tool engineering, plant construction, precision and dental instruments; export-oriented and globally competitive.
- Financial sector: mostly private banking, wealth management, insurance, and trust services; accounts for about 20 percent of GDP.

### Labor market and cross-border integration
- Workforce: 42,500 in 2022, exceeding the resident population of approximately 40,000.
- Commuting:
  - About half of the workforce are inward, cross-border commuters from Austria, Germany, and Switzerland.
  - Of commuters, 59 percent commute daily from Switzerland and 37 percent from Austria.
- Labor market indicators:
  - Labor force participation: 76.1 percent, vis-à-vis 74.9 percent in the EU.
  - Unemployment rate: below 2 percent.

### International economic integration
- Major export destinations include the US, Germany, and Switzerland.
- Membership in the European Economic Area provides full access to the EU’s single market, including financial markets, under rules for free movement of services and capital.
- Financial integration and oversight:
  - Access to the EU’s financial market and oversight by the European Banking Authority.
  - Liechtenstein’s financial institutions have extended private wealth management networks outside the EU to Asia and the Middle East.
- Strong economic ties with Switzerland, including use of the Swiss franc, supporting trade and labor market integration.

*Liechtenstein: Five Things You May Not Know About the IMF’s Newest Member — Rodgers Chawani and Kazuko Shirono, October 21, 2024 (IMF News).*

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## References

- [PRESS RELEASE: THE IMF'S 191ST MEMBER](https://www.imf.org/en/News/Articles/2024/10/21/pr-24387-liechtenstein-principality-of-liechtenstein-becomes-imfs-191st-member)
- [LIECHTENSTEIN AND THE IMF](https://www.imf.org/en/News/SPROLLs/liechtenstein-and-the-imf)
- [https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/10/21/cf-five-things-you-may-not-know-about-liechtenstein_