International comparison of production subsidies and taxes

In connection with the switch to climate-friendly technologies and with the restructuring of supply chains in the wake of the COVID-19 pandemic and the international upheaval caused by the war in Ukraine, there is often talk in the public debate of an international «subsidy race». This LI Facts examines the extent of public subsidization – but also the burden – of private market production using data from national accounts, which cover all levels of government (country, federal states/cantons, municipalities).

In Liechtenstein, such tendencies cannot be observed, yet. Public subsidies are comparatively low in relation to the economic output (GDP). However, production and import taxes are also low in an international comparison, which relieves the burden on economic production. It is also evident that there was a significant increase in public subsidy activity internationally in 2020, which has not yet receded in many countries in 2022.