The Liechtenstein Financial Market Authority (FMA) has published its Q1/2025 macroprudential update assessing economic and financial market developments relevant to Liechtenstein. It reports that the global economy grew robustly in 2024 but that the OECD expects momentum to slow in 2025 as uncertainties in trade and economic policy increase, while inflation remains above central bank targets in the eurozone and the United States. Labour markets are described as stable so far, with unemployment still low despite early signs of cooling reflected in falling job vacancies; unemployment in Liechtenstein has recently risen but remains at a low level. Financial markets are portrayed as highly sensitive to uncertainty, with US equities under heavy pressure, European markets benefiting from fiscal stimulus, and the US dollar weakening after a brief appreciation following US elections. The Liechtenstein financial centre is assessed as stable, although declining interest rates are expected to dampen profitability over the coming year.

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