Background: The Principality of Liechtenstein was established within the Holy Roman Empire in 1719; it became a sovereign state in 1806. Until the end of World War I it was closely tied to Austria but the economic devastation caused by that conflict forced Liechtenstein to conclude 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.

Area
Total: 160 km²
Land: 160 km²
Comparative: about 0.9 times the size of Washington, DC

Land boundaries: 78 km; Austria 37 km, Switzerland 41 km

Coastline: none - landlocked

Maritime claims: none - landlocked
Disputes: none

Climate: continental; cold, cloudy winters with frequent snow or rain; cool to moderately warm, cloudy, humid summers

Terrain: mostly mountainous (Alps) with Rhine Valley in western third

Natural resources: hydroelectric potential

Land use: arable land: 25%; permanent crops: 0%; meadows and pastures 38%; forest and woodland 19%; other 18%

Population: 28,642 (July 1992), growth rate 0.6% (1992)

Nationality: noun - Liechtensteiner(s; adjective - Liechtenstein

Ethnic groups: Alemannic 95%, Italian and other 5%

Languages: German (official), Alemannic dialect

Religions: Roman Catholic 87.3%, Protestant 8.3%, unknown 1.6%, other 2.8% (1988)

Birth rate: 13 births/1000 population (1992)

Death rate: 7 deaths/1000 population (1992)

Net migration rate: 0 migrants/1000 population (1992)

Environment
Current issues: variety of microclimatic variations based on elevation
Current issues note: landlocked

Infant mortality rate: 5 deaths/1000 live births (1992)

Life expectancy at birth: 74 years male, 81 years female (1992)

Total fertility rate: 1.5 children born/woman (1992)

Literacy: 100% (male 100%, female 100%) age 10 and over can read and write (1981)

Country name
Conventional long form: Principality of Liechtenstein

Government type: hereditary constitutional monarchy

Capital: Vaduz

Administrative divisions:

Independence: 23 January 1719, Imperial Principality of Liechtenstein established

National holiday: Assumption Day, 15 August

Constitution: 5 October 1921

Legal system: local civil and penal codes; accepts compulsory ICJ jurisdiction, with reservations

Suffrage: universal at age 18
Diet: last held on 5 March 1989 (next to be held by March 1993); results - percent of vote by party NA; seats - (25 total) VU 13, FBP 12

Executive branch: reigning prince, hereditary prince, head of government, deputy head of government

Legislative branch: unicameral Diet (Landtag)

Judicial branch: Supreme Court (Oberster Gerichtshof) for criminal cases and Superior Court (Obergericht) for civil cases

International organization participation:
Diplomatic representation: in routine diplomatic matters, Liechtenstein is represented in the US by the Swiss Embassy
US:

Flag description: two equal horizontal bands of blue (top) and red with a gold crown on the hoist side of the blue band

Economy overview: The prosperous economy is based primarily on small-scale light industry and tourism. Industry accounts for 53% of total employment, the service sector 45% (mostly based on tourism), and agriculture and forestry 2%. The sale of postage stamps to collectors is estimated at $10 million annually. Low business taxes (the maximum tax rate is 20%) and easy incorporation rules have induced about 25,000 holding or so-called letter box companies to establish nominal offices in Liechtenstein. Such companies, incorporated solely for tax purposes, provide 30% of state revenues. The economy is tied closely to that of Switzerland in a customs union, and incomes and living standards parallel those of the more prosperous Swiss groups.
GDP: purchasing power equivalent - $630 million, per capita $22,300; real growth rate NA% (1990 est.)

Agriculture products: livestock, vegetables, corn, wheat, potatoes, grapes

Industries: electronics, metal manufacturing, textiles, ceramics, pharmaceuticals, food products, precision instruments, tourism

Industrial production growth rate: growth rate NA%

Labor force:
Organized labor: NA

Unemployment rate: 1.5% (1990)

Budget: revenues $259 million; expenditures $292 million, including capital expenditures of NA (1990)

Fiscal year: calendar year

Exports: $1.6 billion
Commodoties: small specialty machinery, dental products, stamps, hardware, pottery
Partners: EFTA countries 20.9% (Switzerland 15.4%), EC countries 42.7%, other 36.4% (1990)

Imports: $NA
Commodoties: machinery, metal goods, textiles, foodstuffs, motor vehicles
Partners: NA

Exchange rates: Swiss francs, franken, or franchi (SwF) per US$1 - 1.5079 (March 1992), 1.4340 (1991), 1.3892 (1990), 1.6359 (1989), 1.4633 (1988), 1.4912 (1987)

Electricity
Production: 23,000 kW capacity; 150 million kWh produced, 5,340 kWh per capita (1989)

Airports: none