The Financial Market Authority Liechtenstein has published this year’s report on the stability of the financial sector. This states that the sector is stable, with prospects having improved versus the previous year. However, the pandemic still entails further risks.
The new report on the stability of Liechtenstein’s financial sector bears witness to the COVID-19 pandemic according to a press release from the Financial Market Authority Liechtenstein (FMA). While gross domestic product plummeted at the start of the coronavirus crisis, the economy has recovered “stronger and more rapidly” than other countries. As such, the risk of payment defaults has also fallen. According to the FMA, the financial sector thus appears to be stable with better prospects than the prior year.
However, the Financial Market Authority sees higher long-term risks due to the pandemic. In addition to COVID-19, the high debt ratio of private households in Liechtenstein also contributes to this. The FMA sees further risks in the international environment, including low interest rates, increasing inflation, and climate and cyber risks.
However, the economy of Liechtenstein has “shown a high level of resilience in this global crisis” thus far. The FMA also refers to the “remarkably stable job market” with regard to this