As part of the International Monetary Fund's (IMF) annual Article IV consultations, IMF economists visited Liechtenstein from January 14 to 27 and held a series of meetings with authorities, associations, and companies. The second Article IV consultation since Liechtenstein joined the IMF served to provide an in-depth analysis and discussion of the current situation and outlook for Liechtenstein's financial center and economy.

In its final statement published on January 27, the IMF emphasizes the challenges currently facing Liechtenstein and Europe in light of ongoing geopolitical changes, persistent uncertainty, and the volatile global economic situation. As an open and highly industrialized economy, Liechtenstein is particularly affected by these developments. At the same time, the IMF highlights the country's historical resilience and sound public finances, with significant reserves and no public debt. Liechtenstein's financial center has proven resilient in the past. Good capitalization and adequate liquidity buffers will remain extremely important for Liechtenstein in the future.

The IMF points to a number of risks that could prevent Liechtenstein from remaining as stable and successful in the future. The ongoing uncertainty requires close monitoring of the situation and flexible adjustments to the framework conditions in order to cushion the effects of external shocks. Given the size and importance of Liechtenstein's financial sector, it is essential to further strengthen financial stability, including through proactive and systematic monitoring of systemic risks and strong micro- and macroprudential supervision. In light of current international developments, the IMF also recommends paying close attention to the resilience of both banks and other financial intermediaries in order to ensure stability in the future.

In order to return to a path of growth and increase productivity in Liechtenstein again in the medium and long term, the strengths of the Liechtenstein labor market, such as the high level of education and dual vocational training, should be maintained and strengthened in a targeted manner. Forward-looking investments, such as in the areas of digitalization and infrastructure, are also highlighted as important levers. As in the rest of Europe, the IMF also points to the rising expenditure needs of aging societies, adjustments to climate change, and increasing security needs in this context. Prudent budgeting and early financial planning are therefore important in order to maintain Liechtenstein's high standard of living and stable national budget. In this context, the IMF welcomes the government's intention to respond to these developments at an early stage and to present appropriate proposals for a sustainable pension system. In general, the international organization also emphasizes the importance of timely and detailed macroeconomic data in order to better assess the economic situation, identify risks early on, and take timely action. The IMF therefore welcomes the initiatives launched by the government to improve macroeconomic data on Liechtenstein.

The working visit included talks with Head of Government and Minister of Finance Brigitte Haas, State Councilor Daniel Oehry, who is responsible for infrastructure and education, and Mario Gassner, Chairman of the Executive Board of the Liechtenstein Financial Market Authority (FMA). A series of talks were also held with other experts from the FMA, various government agencies, and associations. A visit to Hoval in Vaduz rounded off the program and gave the IMF team an insight into Liechtenstein's innovative industrial location.

The concluding statement serves as the basis for the more detailed Article IV report on Liechtenstein, which will be published in early April. The concluding statement is available on the website of the Ministry of Presidential Affairs and Finance.