Liechtensteins economy is slowly recovering from the frankenshock. This is the conclusion reached by the Economy Monitor produced by Liechtensteins Financial Market Authority based on various indicators.
The lifting of the franc per euro cap in January 2015 hit the frank region hard. But for Liechtensteins economy, the effect now seems to be slowly receding. According to the Economy Monitor by Liechtensteins Financial Marketing Authority (FMA), direct exports of goods have since recovered after a sharp fall last year, rising by 8.4 per cent in the first quarter of 2016 compared to the same quarter last year. The number of overnight stays in tourist accommodations also increased, rising by 6.8 per cent in the period of January to March 2016 compared to the same period last year.
The situation is somewhat different in the construction sector where the number of construction projects has dropped sharply: in the first quarter of 2016, the Office of Construction and Infrastructure approved only 83 construction projects 68 less than the same period last year or a 45 per cent decrease.
The FMA experts are noticing in an international context an economic upturn in the European economy. This is based on domestic demand and the situation in the labour market. While the Brexit decision had a negative impact on international economic outlooks, the direct financial market reaction has proven weaker than initially feared.