Overview
Liechtenstein, officially the Principality of Liechtenstein, is a small country nestled in the Central European Alps. It holds the distinction of being one of only two doubly landlocked countries in the world, meaning it is landlocked by countries that are themselves landlocked. This microstate is bordered by Austria to the east and north-east, and Switzerland to the north-west, west, and south.
Geography
Liechtenstein's location in the heart of the Alps gives it a dramatic alpine landscape, characterized by mountainous terrain, forested hillsides, and the Rhine River, which forms much of its western border with Switzerland. Despite its diminutive size, the country's varied topography ranges from the lowlands along the Rhine valley to peaks that rise well over 2,000 metres.
Its unique position between two much larger and more prominent neighbours—Austria and Switzerland—has shaped Liechtenstein's history, culture, and economy in profound ways, fostering close ties with both nations.
Government and Politics
Liechtenstein is a constitutional monarchy, ruled by a reigning prince from the House of Liechtenstein. The prince retains significant political powers, working alongside an elected parliament to govern the country. The capital city, Vaduz, serves as the seat of government and is home to the prince's castle, which overlooks the town from a hillside.
- Official name: Principality of Liechtenstein
- Capital: Vaduz
- Government type: Constitutional monarchy
- Official language: German
Economy
Despite its small size, Liechtenstein has developed a highly prosperous economy, often noted for its strong financial services sector, favourable tax policies, and a stable political environment. The country uses the Swiss franc as its official currency, reflecting its close economic integration with Switzerland.
Liechtenstein's economy also benefits from a diversified industrial base, including precision manufacturing and specialized exports, which contribute to one of the highest standards of living in the world relative to its population size.