Since the signing of a customs treaty in 1924, Liechtenstein and Switzerland have represented one mutual economic area with open borders between the two countries. Liechtenstein also uses the Swiss franc as its national currency, and Swiss customs officers secure the border with Austria.

Liechtenstein is a member of EFTA and joined the European Economic Area (EEA) in 1995 in order to benefit from the European Union (EU) internal market. The liberal economy and tax system make Liechtenstein a safe, trustworthy, and success-oriented place for private and business purposes, especially with its highly modern, internationally laid out infrastructure and nearby connections to the whole world. In 2007, Liechtenstein had an obligation under the EEA treaty to harmonize its laws with EU directives 2005/36 and 1999/42 on the mutual recognition of EU and EEA university and professional diplomas. Liechtenstein is also part of the EU fund on research and technology and is entitled to participate in EU projects and subsidies.

The Principality of Liechtenstein has gone through dramatic economic and cultural development in the last 40 years. In this short period of time, Liechtenstein developed from a mainly agricultural state to one of the most highly industrialized countries in the world.

The Principality of Liechtenstein ranks among the strongest industrialized areas of Europe according to a 2008 government economic study. The strong industrial sector focusing on the metal and machine industries, vehicle manufacturing, and the electrical and optical areas were well able to sustain their position in spite of the growing service sector. Approximately 5% of the country's revenue is invested in research and development.

The significance of the industrial sector for the Liechtenstein economy is reflected in foreign trade. As a result of the global economic crisis, total exports decreased by 27.4% and 0.1% in 2009 and 2008, respectively, compared to an increase of +14.5% in 2007, and imports decreased by 21.8% and 0.8% for 2009 and 2008 compared to an increase of +15.2% in 2007.

The export economy is tied to Western Europe. Approximately 60% of all Liechtenstein exports go to Western Europe, followed by North America and East Asia. In 2009, about 61% of Liechtenstein's goods were exported to Western Europe, 14.7% to the Americas, 12.49% to Asia, and the remaining share to the rest of the world. In 2008, the U.S. was one of the most important trading partners for Liechtenstein, with approximately $452 million (SFr. 490 million) worth of exports and $40 million (SFr. 43.3 million) of imports. Germany was first with a total trade value of $1.76 billion (SFr. 1.9 billion).

The Liechtenstein industrial sector contributes 39% of the country's GDP, services 54%, and agriculture 6%. Despite Liechtenstein's overall good competitive performance, some large manufacturing companies outsource their production to low-cost countries.

In addition to the industrial sector, Liechtenstein has developed a strong services sector, with an important financial center that includes a multitude of related service enterprises. In particular, branches such as real estate, information systems, and other services for enterprises showed a sharp increase, followed by trust companies and legal services. Five out of ten employees now work in the services sector. As a rule, these newly established enterprises tend to be small. The 2008 economic study showed that approximately 99.5% of businesses located in Liechtenstein are mostly small and medium-sized enterprises.

The economy of the Principality of Liechtenstein provides approximately 33,000 jobs, of which about two-thirds are filled by commuters from Switzerland, Austria, and Germany.

The Principality of Liechtenstein is known as an important financial center primarily because it specializes in financial services for foreign entities. The country's low tax rate and traditions of strict bank secrecy have contributed significantly to the ability of financial intermediaries in Liechtenstein to attract funds from outside the country's borders. In November 2009, the Organization for Economic Cooperation and Development (OECD) recognized Liechtenstein as a jurisdiction that has implemented international cooperation standards in tax matters, and it has removed Liechtenstein from the so-called OECD "grey list".

Liechtenstein has chartered 15 banks, 3 non-bank financial companies, and 71 public investment companies, as well as insurance and reinsurance companies. Its 395 licensed fiduciary companies and 112 lawyers serve as nominees for, or manage, more than 75,000 entities (primarily corporations, institutions, or trusts), mostly for non-Liechtenstein residents. Approximately one-third of these entities hold the controlling interest in other entities, chartered in countries other than Liechtenstein. The Principality's laws permit the corporations it charters to issue bearer shares. Until recently, the Principality's banking laws permitted banks to issue numbered accounts, but new regulations require strict know-your-customer practices for all accounts.

GDP (2007): U.S. $4.6 billion (SFr. 5.5 billion).
Annual growth rate (2008): +1.1%.
Unemployment (February 2009): 2.7%, or 484 individuals. (Unemployment rate for the year 2008: 2.3%.)
Avg. inflation rate (2008): 2.4%.
Consumer price index: +3.4% since 2005.
Agriculture (2008): 6% of GDP; 1.5% of the total workforce. Products--wheat, barley, corn, potatoes, livestock, dairy products.
Industry (2008): 39% of GDP; 42.2% of the total workforce. Types--electronics, metal manufacturing, textiles, ceramics, pharmaceuticals, food products, precision instruments.
General services (2008): 23% of GDP; 38.9% of the total workforce.
Financial services (2008): 31% of GDP; 17.4% of the total workforce.
Workforce: 67.7% of total 33,415-person workforce is filled by foreign commuters (50.6% Swiss, 45.3% Austrians), and 32.3% by Liechtenstein citizens.
Trade (2009): Exports--$2.79 billion (SFr 3.08 billion). Main products--small specialty machinery, dental products, stamps, hardware, pottery. Major markets--Western Europe (61.72%) Asia (12.49%), North America (12.07%). Imports--$1.73 billion (SFr 1.92 billion). Main products--machinery, metal goods, textiles, foodstuffs, motor vehicles. Major suppliers--EU countries, Switzerland.
Banking assets: In 2007, customer deposits were valued at $142.8 billion (SFr. 171.4 billion, +6.5% over one year).
Exchange rate (March 2009): $1 U.S. = 1.06963 CHF or SFr.