Principality of Liechtenstein: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Principality of Liechtenstein

The 2025 Article IV Consultation with Liechtenstein highlights that after exhibiting significant volatility in 2020-23 with the pandemic and spillovers from Russia’s war in Ukraine, growth has resumed, albeit at a low rate. The economy is recovering moderately. Gross domestic product growth is expected to gain momentum in 2025. A recovery in external demand for industrial products and services and a steady increase in financial services are expected to support growth reaching 1 percent in 2025. Risks to the outlook are tilted to the downside. As a highly open economy, a potential regional or global slowdown or accelerated geo-economic fragmentation would adversely affect exports and impede recovery. Measures are needed to narrow skills gaps for residents and increase domestic labor supply. Preserving pension system sustainability is essential in the face of adverse demographic trends. Priorities include improving timeliness of national accounts and establishing balance of payment statistics.