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.

Geographic coordinates: 47 16 N 9 32 E

Area
Rank: 219
Comparative: about 0.9 times the size of Washington DC

Coastline: 0 km (doubly landlocked)

Maritime claims: none (landlocked)

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 arable land

Irrigated land: NA

Natural hazards: NA

Geography
Note: along with Uzbekistan one of only two doubly landlocked countries in the world; variety of microclimatic variations based on elevation

Population: 36,713 (July 2012 est.)
Rank: 213
Growth rate: 0.795% (2012 est.)
Growth rate rank: 135
Below poverty line: NA%

Ethnic groups: Liechtensteiner 65.6% other 34.4% (2000 census)

Languages: German (official) Alemannic dialect

Religions: Roman Catholic (official) 76.2% Protestant 7% unknown 10.6% other 6.2% (June 2002)

Population growth rate: 0.795% (2012 est.)
Rank: 135

Birth rate: 10.76 births/1000 population (2012 est.)
Rank: 179

Death rate: 6.78 deaths/1000 population (July 2012 est.)
Rank: 139

Net migration rate: 3.98 migrant(s)/1000 population (2012 est.)
Rank: 24

Environment
Current issues: NA

Infant mortality rate
Rank: 191

Life expectancy at birth
Rank: 11

Total fertility rate: 1.69 children born/woman (2012 est.)
Rank: 171

Hivaids
Adult prevalence rate: NA
People living with hivaids: NA
Deaths: NA

Education expenditures: 2% of GDP (2007)
Rank: 156

Government type: hereditary constitutional monarchy

Administrative divisions: 11 communes (Gemeinden singular - Gemeinde); Balzers Eschen Gamprin Mauren Planken Ruggell Schaan Schellenberg Triesen Triesenberg Vaduz

Independence: 23 January 1719 (Principality of Liechtenstein established); 12 July 1806 (independence from the Holy Roman Empire); 24 August 1866 (independence from the German Confederation)

National holiday: Assumption Day 15 August

Constitution: 5 October 1921; amended 15 September 2003

Legal system: civil law system influenced by Swiss Austrian and German law

International law organization participation: accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction

Suffrage: 18 years of age; universal

Legislative branch: unicameral Parliament or Landtag (25 seats; members elected by popular vote under proportional representation to serve four-year terms)

Judicial branch: Constitutional Court or Verfassungsgericht; Supreme Court or Oberster Gerichtshof; Court of Appeal or Obergericht

Political parties and leaders: Die Freie Liste (The Free List) or FL [Wolfgang MARXER]; Fortschrittliche Buergerpartei (Progressive Citizens' Party) or FBP [Alexander BATLINER]; Vaterlaendische Union (Fatherland Union) or VU [Jakob BUECHEL]

International organization participation: CD CE EBRD EFTA IAEA ICRM IFRCS Interpol IOC IPU ITSO ITU ITUC (NGOs) OPCW OSCE PCA Schengen Convention UN UNCTAD UPU WIPO WTO

Diplomatic representation
From the us: the US does not have an embassy in Liechtenstein; the US Ambassador to Switzerland is accredited to Liechtenstein

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 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 likely the second 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 faced renewed international pressure - particularly from Germany - to improve transparency in its banking and tax systems. In December 2008 Liechtenstein signed a Tax Information Exchange Agreement with the US. 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. By the end of 2010 Liechtenstein had signed 25 Tax Information Exchange Agreements or Double Tax Agreements. In 2011 Liechtenstein joined the Schengen area which allows passport-free travel across 26 European countries.

Real gdp purchasing power parity:
Rank: 176

Real gdp growth rate:
Rank: 195

Real gdp per capita:
Rank: 2

Agriculture products: wheat barley corn potatoes; livestock dairy products

Industrial production growth rate: NA%

Labor force: 34,330 (2010)
Rank: 203

Unemployment rate: 1.5% (2007)
Rank: 23

Population below poverty line: NA%

Budget
Surplus or deficit: 0.9% of GDP (2010 est.)
Surplus or deficit rank: 30

Taxes and other revenues: 23.5% of GDP (2010 est.)
Rank: 136

Fiscal year: calendar year

Inflation rate consumer prices: 0.7% (2010)
Rank: 5

Market value of publicly traded shares: $N/A

Exports: $2.79 billion (2009 est.)
Rank: 126
Commodities: small specialty machinery connectors for audio and video parts for motor vehicles dental products hardware prepared foodstuffs electronic equipment optical products

Imports: $1.73 billion (2009 est.)
Rank: 163
Commodities: agricultural products raw materials energy products machinery metal goods textiles foodstuffs motor vehicles

Debt external: $0 (2001)
Rank: 205

Exchange rates:

Telephones
Main lines in use: 19,600 (2011)
Main lines in use rank: 191
Mobile cellular: 37,000 (2011)
Mobile cellular rank: 203

Broadcast media: relies on foreign terrestrial and satellite broadcasters for most broadcast media services; first Liechtenstein-based TV station established August 2008; Radio Liechtenstein operates multiple radio stations; a Swiss-based broadcaster operates several radio stations in Liechtenstein (2008)

Internet
Country code: .li
Hosts: 14,278 (2012)
Hosts rank: 128
Users: 23,000 (2009)
Users rank: 189

Pipelines: gas 20 km (2010)

Railways
Rank: 134

Roadways
Rank: 201

Waterways: 28 km (2010)
Rank: 106

Disputes international: none

Illicit drugs: has strengthened money laundering controls but money laundering remains a concern due to Liechtenstein's sophisticated