Liechtenstein joined the International Monetary Fund (IMF) on 21 October 2024. The first Article IV Consultation took place in Liechtenstein in January 2025. These country visits by IMF experts are conducted annually in all IMF member states and serve to monitor and analyse economic developments and policies. Appropriate recommendations are then derived from these assessments, contributing to the political discussion.

After two intensive weeks in Liechtenstein, during which they held talks with H.S.H. Hereditary Prince Alois von und zu Liechtenstein, the Government, the Financial Market Authority, a number of other public authorities, numerous business associations, and private companies, the IMF economists compiled a detailed report. This report is now available on the Government's website.

Overall, the IMF economists gave Liechtenstein's economy very high marks. The stable public finances, the close international integration – particularly with Switzerland and the European Economic Area – the highly specialised and export-oriented industrial sector, and the successful, internationally oriented financial centre are all highlighted in particularly positive terms.

After several years marked by weak economic performance, the IMF is forecasting a moderate recovery and sustained low inflation for the coming years. At the same time, it warns of the current high level of geopolitical uncertainty and the risks posed by global economic weakness to Liechtenstein's export-oriented economy. However, the solid national budget and high level of reserves provide Liechtenstein with the necessary scope to respond to such developments. In this context, Liechtenstein's macroprudential policy is also viewed positively: According to the IMF, the country has the necessary instruments to strengthen the resilience of the financial market and to prevent crises, and it makes use of these instruments in practice.

One topic examined in depth in the report is the situation on the labour market. On the one hand, the IMF highlights the low unemployment rate in Liechtenstein in positive terms, while on the other it points to the ongoing challenge of labour shortages. In this context, the further steps recommended by the IMF include (vocational) education measures, increasing labour force participation rates – particularly among women and older people – and maintaining the attractiveness of the Liechtenstein labour market for cross-border commuters. According to the IMF, such framework conditions and investments, for example in transport and childcare, could further boost productivity levels in Liechtenstein. Similar conclusions are also reflected in the Government's current work and strategies on these issues.

In the medium and long term, the IMF points to growing challenges in relation to public spending. Demographic change, the safeguarding of pensions and social security, and climate change are also contributing factors. Against this backdrop, the IMF recommends initiating early discussions on necessary investments to ensure that today's high standard of living, sound public finances, and high productivity are preserved for future generations. In light of these challenges, the IMF considers a high degree of flexibility in fiscal policy to be essential. It also generally recommends continued early and forward-looking public financial planning.

The IMF describes Liechtenstein's financial centre as stable and makes particularly positive mention of its effective supervision. The high capitalisation and strong liquidity ratios of the banks are also highlighted. Given the international orientation of the financial centre, the IMF commends the high level of attention paid – by both the private and public sectors – to combating money laundering and terrorist financing, as well as to compliance with international sanctions. The field of cybersecurity, in which Liechtenstein has made significant progress in recent years, is likewise positively noted.

However, the IMF sees potential for improvement in the area of macroeconomic statistics. This includes, for example, more timely estimates of Liechtenstein's gross domestic product – a topic that was discussed repeatedly during the accession process. The Government aims to enhance the quality of macroeconomic data on Liechtenstein, thereby enabling the population and domestic decision-makers in particular to gain a more up-to-date and accurate understanding of the national economy. Related work, led by the Office for Statistics, is already underway.

The Government extends its thanks to the IMF team, led by Mission Chief Kazuko Shirono, for the detailed analysis of Liechtenstein's economy. The first Article IV report on Liechtenstein will serve as an important starting point and benchmark for further discussions with IMF representatives in the coming years.