Issue 4/2020 (November 13, 2020)
|Data File (XLSX)||Archive|
After two sharp declines in the first half of 2020, Liechtenstein’s economic situation has improved so far: The KonSens jumped to +2.4 in the third quarter. The strong increase shows a very high growth compared to the previous quarter (catch-up effects). Summing the first three quarters of 2020, Liechtenstein still shows a weak business cycle pattern in comparison to 2019, so far. The further business cycle dynamics in the fourth quarter are currently highly uncertain and will depend on the development of the pandemic.
The business cycle index KonSens by the Liechtenstein Institute is a quarterly, coincident composite indicator for Liechtenstein’s business cycle and consists of 16 individual economic indicators. It offers a timely aggregation of various – sometimes contradicting – business cycle signals to a consistent picture (with a publication lag of around 6 weeks). Applying various statistical methods, the KonSens generates for each quarter an indexed data point – removed from seasonal effects and the long-run growth trend – and shows whether economic growth is above (boom) or below (recession) average since 1998. The Name KonSens originates from the conception of the «business cycle as a consensus» (Burns and Mitchell, 1946) of various individual economic impulses. But it is also the simple abbreviation of «Konjunktur-Sensor» (sensor of Liechtenstein's business cycle situation).
The KonSens focuses on the measurement of the state of Liechtenstein's business cycle, rather than on its determinants or influences. It represents a conceptual supplement to the ordinary focus on the Gross Domestic Product and is accessible on a timelier and more frequent basis than Liechtenstein’s annually published GDP. It allows an easy interpretation for policy, public administration, media, companies and general public and combines different data origins/dimensions to improve the data base for economic analyses. Doing so, it enables better reporting, monitoring and surveillance. The KonSens project is financially supported by the Liechtenstein Government.