Brunhart, Andreas; Geiger, Martin; Paetzold, Jörg (2024): Wachstumsmonitor – Ausgabe 4 (2024). Eine mehrdimensionale Wachstumsbetrachtung Liechtensteins mit einem Fokuskapitel zum Thema «Arbeitskräftemangel». Unter Mitwirkung von Meret Majendie. Liechtenstein-Institut, Gamprin-Bendern.
Abstract
The «Growth Monitor 2024» – the fourth edition of the Liechtenstein Institute’s Growth Monitor – analyzes relevant and available economic data that depicts the long-term growth development of the Liechtenstein economy from various perspectives. It is designed according to the view that prosperity is a multidimensional concept. In addition to traditional economic indicators, indicators that depict aspects such as living conditions or resource consumption are also important for the long-term and sustainable development of an economy. It should therefore not only capture material prosperity, but also perceived welfare.
In the 2024 edition, the Growth Monitor comprises a set of 85 indicators, which are evaluated in terms of situation and trend, and also includes a focus chapter on the topic of labor shortages. Most of the data on which the indicators in the fourth edition of the Growth Monitor are based include developments up to 2022/23, depending on data availability.
The Liechtenstein economy has developed extremely dynamically and successfully in recent decades. Today, Liechtenstein is one of the most prosperous, innovative and stable countries in the world, with a comparatively very satisfied and healthy population. Even though economic growth continues to be positive in many areas, long-term growth in Liechtenstein has tended to slow down further in recent years. The main factors behind this are the weakening global demand and low productivity growth. In addition, the growth outlook is clouded by the current macroeconomic challenges in the context of geopolitical fragmentation, the green transition, the monetary environment and demographic trends.
Also, the high level of economic activity in Liechtenstein is accompanied by a high demand for labor, especially for highly qualified workers. At the same time, the demographic trend in Liechtenstein is unfavorable and the labor market indicators suggest that the labor market participation of women and older people is not yet being fully exploited.
With regard to the sustainability of economic growth, it can be stated that Liechtenstein’s economic activity continues to come at a considerable cost to the environment. Nevertheless, the desired trend reversal is now becoming visible for at least some of the indicators. However, the available official statistics on the Sustainable Development Goals (UN) are still too thin for a more comprehensive assessment of the sustainability of Liechtenstein's economy.
Overall, Liechtenstein appears to be well equipped to meet the current challenges to economic growth. However, for the future success of Liechtenstein’s economy, private efforts for the innovation location continue to be of central importance, as does a stronger commitment from the public sectuor in the areas of research and education. In times of increasing global uncertainty and geopolitical fragmentation, it is also important to strengthen national resilience and security.
