Liechtenstein is highly industrialized, with less than 2 percent of the labor force engaged in agriculture. The principal crops are corn, potatoes, barley, wheat, vegetables, and grapes. Livestock are grazed in the alpine meadows in summer. The major manufactures include machinery, pharmaceuticals, food products, metal goods, precision instruments, furniture, and pottery. Much of the principality’s income is derived from banking, tourism, the sale of postage stamps, and from international firms that maintain headquarters here because of favorable tax treatment. The unit of currency is the Swiss franc, and Liechtenstein maintains a customs union with Switzerland. The country has 19 km (12 mi) of railroads and 323 km (201 mi) of roads, but it has no airport.
Liechtenstein has a remarkable variety of vegetation. Water milfoil and mare's-tail as well as reeds, bulrush, bird's eye primrose, and orchids can be found. The forests comprise a mixed woodland with copper beeches, common and Norway maple, sycamore, lime, elm, and ash. As to the animal life, Liechtenstein is rich in red deer, roe deer, chamois, hare, marmot, blackcock, pheasant, hazel grouse, partridge, fox, badger, marten, polecat, stoat, weasel, and others.
Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial service sector and living standards on a par with the urban areas of its large European neighbors. Low business taxes - the maximum tax rate is 18% - and easy incorporation rules have induced 73,700 holding or so-called letter box companies to establish nominal offices in Liechtenstein, providing 30% of state revenues. The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between European Free Trade Association (EFTA) and EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe.
