The Liechtenstein Financial Market Authority has published its Q4/2025 macroprudential update, assessing international financial markets and domestic economic conditions. The report portrays a resilient global economy but flags below-average momentum in Liechtenstein, while characterising the Liechtenstein banking sector as stable despite a challenging monetary policy backdrop and elevated financial market risks. Key points include an OECD expectation of 3.2% global GDP growth in 2025, with growth slowing to 2.0% in the United States and 1.3% in the eurozone. Domestic indicators remain weak, with KonSens at -0.6, employment growth negative since the fourth quarter of 2024, and an economic survey pointing to declining personnel planning in the industrial sector. In banking, client assets under management reached a new high of CHF 523 billion, driven by net new money inflows. Inflation is back above 2% in the eurozone, remains high in the United States and has fallen to 0% in Switzerland; the Federal Reserve lowered policy rates again while the European Central Bank and Swiss National Bank kept rates unchanged in December. Equity markets have been supported by artificial intelligence optimism, but high valuations and economic policy uncertainty are seen as increasing the risk of abrupt market corrections.
Liechtenstein Financial Market Authority 2025-12-18
Liechtenstein Financial Market Authority publishes Q4 2025 macroprudential update noting stable banks amid rising market correction risks
The Liechtenstein Financial Market Authority's Q4/2025 update notes a resilient global economy but below-average momentum in Liechtenstein, with stable banking amid challenging conditions. The OECD forecasts 3.2% global GDP growth in 2025, with slower U.S. and eurozone growth, and weak domestic indicators like negative employment growth. Despite challenges, Liechtenstein's banking sector manages CHF 523 billion in client assets, while inflation trends and monetary policies vary by region.