For centuries, the orientation of the Liechtenstein economy was primarily agricultural. Given existing production methods, a population of only about 8000 could be sustained. This population number was reached in the 19th century and could only be maintained through various waves of emigration, especially to the New World. Only in the 1920s did the economy improve slightly, which also resulted in an increase in the population. Foreigners increasingly took up residence in Liechtenstein for economic reasons. The economic boom after the Second World War quickly pushed the domestic employment market to its limits, so that employees were increasingly brought into the country, including cross-border commuters from the region.

The first wave of industrialization was relatively late. The basis of this industrialization was especially the Customs Treaty of 1852 with Austria-Hungary. This treaty opened up the large market of the Danube Monarchy. Some Swiss textile industrialists founded operations in Liechtenstein. The consequences of the First World War, however, led to an economic catastrophe, especially also the implosion of the value of the currency. In 1924, the Customs Treaty with Liechtenstein entered into force, and the Swiss franc was adopted as the official currency. A currency treaty with Switzerland was not, however, concluded until 1980. The period after the beginning of the Customs Union with Switzerland was quickly burdened by the global depression. An actual boom only took place after the Second World War, sustained primarily by strongly increasing industrial exports. The financial services sector (banks and later also insurance companies) experienced high growth primarily in the 1980s and 1990s.

Due to the small domestic market, above average success of the Liechtenstein economy is only possible if clients can be attracted from foreign markets. Accordingly, the integration objective of Liechtenstein economic and foreign policy is very important. Liechtenstein joined EFTA in 1991, the European Economic Area (EEA) Agreement in 1995, and the World Trade Organization (WTO) and its subsidiary organizations also in 1995.

Two Liechtenstein industrial pioneers:
Martin Hilti (Hilti Corporation),
Gustav Ospelt (Hovalwerk AG)