Liechtenstein Facts

by countryaah · Published June 3, 2019 · Updated December 12, 2024

Liechtenstein, Central European State; 160 km², 38 000 residents (2019).Liechtenstein is located in the Upper Rhine Valley in the Alps on the border between Switzerland and Austria. The country has been closely associated with Switzerland through the Customs, Currency and Postal Union since the early 1900s. The capital is Vaduz (5,600 residents, 2019).

Country facts

Principality of Liechtenstein / Principality of Liechtenstein
Country abbreviation: LI
Surface: 160 km²
Population (2019): 38,000 residents
Capital: Vaduz
Main language: German
State: Independent Principality
Head of State: Hans Adam II (prince)
Head of Government: Adrian Hasler
Per capita GDP (2015): US $ 168 146
GNI per capita (2009): US $ 136,770
Currency unit: 1 Swiss franc = 100 centime
Currency code: CHF
Country number (telephony): 423
Internet domain name: li
Time difference compared to Sweden: 0
National Day: August 15 (Ascension Day)

Nature

Land use: forest (35%), agricultural land (24%), other (41%)
Highest mountain: Grauspitze (2 599 m above sea level)

Population

Population density (2019): 238 residents per km²
Natural population growth (2019): 0.2%; birth number 9 ‰, death number 7 ‰
Age structure (2019): 0-14 years (15%), 15-64 (68%), 65- (17%)
Life expectancy (2019): men 82 years, women 86 years
Infant mortality (2019): 4 per 1,000 live births
Population forecast 2050: 44,000 residents
HDI (2017): 0.916 (place 17 of 189)
Urbanization rate (2019): 14%
Most populous cities (2019): Schaan (6,000 residents), Vaduz (5,600)

Business

Industry’s contribution to GDP (2014): agriculture (7%), industry (41%), service (52%)
Exports (2015): US $ 3 217 million
Main export products: machinery, parts for the electronics industry, optical equipment
Main exporting countries: Germany, Austria, France
Imports (2015): US $ 1,989 million
Main import products: agricultural products, raw materials, machinery
Main importing countries: Switzerland, Germany, France

Communications

Railway network (2010): 9 km
Road network (2010): 380 km
Internet users per 100 residents (2016): 97

Geography

Location and Borders

Liechtenstein is a small, landlocked country in Central Europe, nestled in the heart of the Alps. It is bordered by Switzerland to the west and south, and Austria to the east and north. Covering an area of just 160 square kilometers (62 square miles), Liechtenstein is one of the smallest countries in the world. Despite its size, the country enjoys a strategic location between two larger European powers, Switzerland and Austria, providing it access to trade, finance, and tourism.

Liechtenstein’s borders are defined by the rugged Alpine terrain, which makes up much of its landscape. The country is situated in the Rhine River Valley, with the Rhine forming its western border with Switzerland. The mountainous regions to the south and east offer breathtaking landscapes, including the highest point in Liechtenstein, the Grauspitz, which reaches an elevation of 2,599 meters (8,527 feet).

Physical Features

Liechtenstein’s geography is dominated by the Alps, which stretch across the southern part of the country. The landscape is primarily characterized by steep hills, mountains, valleys, and forests. The northern part of the country consists of flatter terrain along the Rhine River, where most of the population lives. The capital city, Vaduz, and other major towns like Schaan, are located in this flatter region, which offers better access to infrastructure and transportation.

The country’s mountains, such as the Rappenstein and the Eschnerberg, are central to its natural beauty, attracting visitors for outdoor activities like hiking, skiing, and mountaineering. The alpine environment is also home to rich biodiversity, with forests, wildflowers, and a variety of wildlife, including red deer and golden eagles.

In addition to the Alps, the country’s position in the Rhine Valley makes it an attractive location for viticulture, with steep slopes suitable for grape cultivation. The region’s mix of alpine and river valley terrain provides the perfect environment for small-scale farming and tourism, which are significant economic contributors.

Climate

Liechtenstein experiences a temperate climate with distinct seasons, typical of a mountainous region. Winters are cold, with temperatures often dipping below freezing. Snowfall is common, particularly in the higher altitudes, which supports winter sports like skiing and snowboarding in the mountainous regions. In the lower regions, where Vaduz and Schaan are located, snow is less frequent, but winter temperatures can still be chilly.

Summer temperatures are mild, with average highs around 25°C (77°F), although temperatures can occasionally reach the low 30s (86°F) during heatwaves. The country’s position in the Alps means it experiences varied weather patterns, with the southern slopes benefiting from more sunshine and warmer temperatures, while the northern parts receive more rainfall due to the proximity of the Rhine River.

Liechtenstein’s climate, combined with its fertile soil in the valleys, supports a range of agricultural activities. The temperate climate also contributes to the country’s appeal as a tourist destination, with visitors attracted by the opportunities for both summer and winter recreational activities.

Natural Resources

Liechtenstein has limited natural resources due to its small size and mountainous terrain. The country lacks significant mineral deposits and other large-scale natural resources. However, the Rhine River, which forms the western border, provides water for drinking, industry, and agriculture. The country has developed a network of well-managed forests, and timber production plays a modest role in the economy.

Agriculture is not a major industry in Liechtenstein, but the country does produce small amounts of crops such as grapes, vegetables, and fruits, which are used for local consumption and, in some cases, export. The country’s vineyards are particularly famous for producing high-quality wines, and its agricultural sector remains an essential part of the cultural landscape.

Liechtenstein’s most important resource, however, is its financial sector. The country’s favorable tax laws and banking regulations have made it a global center for wealth management, banking, and finance. It is considered one of the world’s major financial hubs, attracting international clients who benefit from its stable economy, tax policies, and privacy laws.

People

Population and Ethnic Composition

Liechtenstein has a population of approximately 39,000 people, making it one of the smallest countries in the world by population. The population density is relatively high compared to the country’s small land area. The majority of the population is of ethnic German descent, as the country’s primary language, German, is spoken by nearly all of its residents. While the official language is German, the local dialect of Alemannic is also commonly spoken in daily life.

Although the population is primarily German-speaking, there is also a significant number of residents from other European countries, particularly Switzerland, Austria, and Italy. This diverse population has contributed to a blend of cultural influences within the country. Liechtenstein’s small size and proximity to other European countries mean that it has a relatively open and cosmopolitan culture, with many residents working in Switzerland or Austria.

Liechtenstein’s population is ethnically homogeneous, but the country has a number of foreign nationals living in the country, with around a third of the population consisting of foreign-born residents. Many of these foreign nationals are drawn to Liechtenstein due to employment opportunities, particularly in the finance and service industries.

Language

The official language of Liechtenstein is German, which is used in government, education, and the media. The German spoken in Liechtenstein is similar to the variety used in Switzerland and Austria, with some regional differences in vocabulary and pronunciation. The Alemannic dialect is commonly spoken in everyday life, particularly in rural areas, and has strong similarities to the dialects spoken in neighboring Switzerland.

Although German is the official language, English is widely spoken, particularly in the business and banking sectors. Many residents of Liechtenstein are bilingual or multilingual, with many speaking fluent English, Swiss German, and sometimes French or Italian. The country’s small size and central location in Europe mean that many people have easy access to other languages and cultures, contributing to a highly educated and cosmopolitan society.

Religion

Liechtenstein is predominantly Christian, with the majority of the population adhering to Roman Catholicism. About 80% of the population is Roman Catholic, and the country has a strong Catholic tradition. The influence of Catholicism is visible in the country’s cultural and social practices, and many of the country’s holidays and festivals are rooted in the Christian liturgical calendar. The Catholic Church plays an essential role in the country’s education system, with many schools being affiliated with the church.

Protestantism is also practiced in Liechtenstein, albeit by a much smaller portion of the population. There is a small but active Protestant community, mainly concentrated in the urban areas, and some Protestant churches have a presence in the country. There are also a few other religious minorities in Liechtenstein, including Orthodox Christians and Muslims, but they constitute a very small percentage of the population.

Religion in Liechtenstein plays an important role in shaping the country’s social fabric, with religious institutions providing social services such as education, healthcare, and charitable work. The country is also known for its religious tolerance, with people of different faiths living together in peace and mutual respect.

Social Structure

Liechtenstein is a highly developed, wealthy country with a relatively high standard of living. The social structure of Liechtenstein is influenced by its small size, high level of education, and a stable economy. The majority of the population is middle class, and the country has low levels of poverty and unemployment. The economy’s reliance on the financial sector has contributed to a strong and affluent middle class, with many residents employed in banking, finance, and services.

The family is an important social unit in Liechtenstein, and traditional family values are widely held. The country has a strong sense of community, particularly in rural areas, where people often know their neighbors and participate in local events and activities. Despite its small size, Liechtenstein has a vibrant cultural life, with many festivals, sporting events, and other cultural activities taking place throughout the year.

Gender roles in Liechtenstein are relatively progressive, with women actively participating in the workforce, politics, and other areas of public life. Women in Liechtenstein enjoy equal rights under the law, and the country has made significant strides in gender equality, although there are still challenges related to the gender pay gap and underrepresentation in leadership positions.

Economy

Key Industries

Liechtenstein has a highly developed, stable, and diverse economy, with a strong emphasis on banking, finance, manufacturing, and services. The country has one of the highest GDP per capita in the world, making it one of the wealthiest nations globally. It is known for its favorable business environment, low taxes, and high level of financial and banking services.

The financial sector is the cornerstone of Liechtenstein’s economy, with the country being one of the world’s leading financial hubs. The banking industry in Liechtenstein is known for its strong regulatory framework, which attracts both private and corporate clients from around the world. Liechtenstein’s financial institutions offer a range of services, including wealth management, asset management, and investment banking.

In addition to finance, Liechtenstein has a significant manufacturing sector, particularly in precision instruments, machinery, and electronics. Companies such as Hilti, which produces construction tools, and Ivoclar Vivadent, which manufactures dental products, are key players in Liechtenstein’s industrial landscape. The country’s small size allows for a high level of efficiency and innovation, which has made it competitive in specialized manufacturing industries.

Agriculture and Livestock

Agriculture is a minor part of Liechtenstein’s economy, with only a small portion of the population employed in the sector. The country’s mountainous terrain and limited arable land make large-scale farming challenging. However, agriculture remains an important part of rural life, with small-scale farms producing dairy products, vegetables, and fruit.

Livestock farming, particularly dairy cattle and sheep, plays a role in the agricultural economy. The country is known for producing high-quality cheese and other dairy products, which are sold both domestically and abroad. Wine production also takes place in Liechtenstein’s vineyards, with the country producing a small but growing number of wines, mainly for local consumption and export.

The country’s agricultural sector is highly subsidized, and the government provides support for sustainable farming practices and the preservation of rural landscapes. While agriculture does not contribute significantly to GDP, it plays an important role in preserving the country’s cultural heritage and environment.

Economic Challenges

Despite its prosperity, Liechtenstein faces several challenges, including its small size, dependence on the financial sector, and vulnerability to global economic fluctuations. The country’s reliance on banking and finance means that it is susceptible to changes in international financial markets, particularly during times of economic instability or when financial regulations change globally.

Furthermore, Liechtenstein faces challenges in diversifying its economy, as the manufacturing and agricultural sectors are small compared to the financial services industry. Although the government has made efforts to promote innovation and entrepreneurship, there are limited opportunities for large-scale diversification due to the country’s small market size and geographic limitations.

Despite these challenges, Liechtenstein has maintained a stable and prosperous economy, supported by its strong regulatory framework, low taxation, and investment in education and infrastructure.

Government

Political System

Liechtenstein is a constitutional monarchy with a parliamentary system. The country is unique in that it combines a high level of political participation with strong monarchical elements. The head of state is the Prince of Liechtenstein, who holds significant powers, including the right to veto legislation, dissolve the parliament, and appoint government ministers. However, the prince’s power is balanced by the political system and the active participation of elected representatives.

The Prince of Liechtenstein is supported by a parliamentary system, which includes the Landtag (Parliament) and the government. The Landtag consists of 25 members who are elected by the people for a four-year term. The government is headed by the prime minister, who is appointed by the prince but must have the confidence of the parliament. The political system ensures that there is a balance between the monarchical power of the prince and the democratic rights of the people.

Legal System

Liechtenstein’s legal system is based on civil law, influenced by Swiss and Austrian legal traditions. The judiciary is independent, and the country’s legal framework ensures that citizens’ rights are protected. The highest court in Liechtenstein is the Constitutional Court, which ensures that laws and government actions are consistent with the country’s constitution.

Liechtenstein has a strong legal system that supports its business-friendly environment. The country is known for its strong banking regulations and privacy laws, which have attracted international clients. Despite its small size, Liechtenstein is a member of several international organizations, including the United Nations, the European Economic Area (EEA), and the World Trade Organization (WTO), and adheres to international standards of law and governance.

Foreign Policy

Liechtenstein’s foreign policy is characterized by its neutrality and commitment to international cooperation. The country has maintained a policy of neutrality for centuries, which has allowed it to avoid involvement in global conflicts. As a small state, Liechtenstein relies on diplomacy and international cooperation to maintain its security and influence.

The country has strong ties to Switzerland and Austria, and it is a member of several international organizations, including the United Nations and the European Economic Area (EEA). Liechtenstein also plays an active role in promoting human rights, environmental protection, and sustainable development on the global stage.