Principality of Liechtenstein: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Principality of Liechtenstein

International Monetary Fund

No 2026/067, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2026 Article IV Consultation highlights that despite global headwinds, Liechtenstein has preserved high incomes, low unemployment, and a strong fiscal position. Yet, its highly open economy is exposed to continuing global and geopolitical shifts. Medium-term spending pressures are rising and should be fully quantified and reflected in fiscal plans. Productivity remains above peers, but the gap is narrowing. The fiscal policy should be more supportive, and the framework should enhance timely monitoring and stand ready to respond to shocks. Actions are needed to improve pension system sustainability. Financial sector policies should bolster resilience through robust risk monitoring and strong prudential oversight. Continued structural reforms are needed to address skills shortages, raise labor supply, and advance digitalization. Progress in closing data gaps—particularly improving the timeliness of national accounts and establishing balance of payments statistics—remains a priority. The macroeconomic projections underlying the consultation were finalized prior to the conflict in the Middle East, but staff’s policy advice remains unchanged.

Keywords: inflation pass-through; staff report; downside risk; currency treaty; Liechtenstein's legal tender; fund relation; Financial sector stability; Unemployment; Global; Middle East; Europe (search for similar items in EconPapers)
Pages: 65
Date: 2026-03-27
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