flag Monaco Monaco: Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to adress the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

The Principality of Monaco had experienced dynamic growth in recent years; nevertheless, the principality's economy has been severely impacted by the Covid-19 pandemic: according to data from the World Bank, GDP contracted by an estimated 13% in 2020. The country's economy rebounded strongly in 2021, when the growth rate reached an unprecedented 21.6% (in volume, adjusted for inflation), with GDP surpassing the 2019 level by 5.9%. In fact, the Principality's GDP reached EUR 7.27 billion in 2021, compared to 5.90 billion in 2020 and 6.60 billion in 2019 (latest official data available). Three sectors produced more than half of the wealth generated in the Principality: scientific and technical activities, administrative and support services (21.2%); financial and insurance activities (16.1%); and wholesale trade (10%, entering in the top three ahead of the real estate and construction sectors).

The pandemic has obviously impacted the principality's finances, due to the short-term measures to help both people (CTTR payments) and businesses overcome the crisis. However, an increase in VAT (particularly on real estate) prompted a relatively strong increase in tax revenue (+13.8% - Statistics Monaco). In 2021, the budget balance returned to positive territory, with a surplus of EUR 8 million compared to a deficit of EUR 103.2 million recorded one year earlier when the COVID-19 pandemic prompted a rise in expenditure and lower revenues. In the same year, the number of assets managed by local banks increased by 14.8%. In recent years, the country has committed to strengthening international tax cooperation and to fighting tax evasion. In 2016, Monaco became the 84th jurisdiction to sign the Convention on Mutual Administrative Assistance in Tax Matters. Monaco also committed to complying with OECD norms for the automatic exchange of information. Furthermore, the Principality and the European Union signed an agreement regarding the automatic exchange of tax information for their nationals and Brussels removed Monaco from its "grey list" of non-cooperative jurisdictions in October 2018.

The country has a very high living standard, and unemployment is considered non-existent. As of December 2022, there were 55,472 employees in the Principality's private sector (a number that grew by 19% since 2013). In 2021, per capita GDP rose to a record level of EUR 81,710, increasing by 17.5% in volume compared to 2020, and by 3.9% compared to 2019. GDP per employee also reached an all-time high of EUR 125,121, up by 17% in volume terms from 2020, and 5.4% from 2019 (latest data available).

 

 
Monetary Indicators 20152016201720182019
Euro (EUR) - Average Annual Exchange Rate For 1 GHS 0.250.240.200.180.17

Source: World Bank - Latest available data.

 

Main Sectors of Industry

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Value Added (in % of GDP) n/a 12.5 80.1
Value Added (Annual % Change) n/a -3.2 8.9

Source: World Bank - Latest available data.

 
 

Country Risk

See the country risk analysis provided by Coface.

 

Indicator of Political Freedom

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:
Free
Political Freedom:
2/7

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

 

Sources of General Economic Information

Main Online Newspapers and Portals
Monaco News Sites and Newspapers
Monaco Business News
Monaco official website
BBC Country Profile, Monaco
Useful Resources
Government of the Principality of Monaco
European Central Bank
 
 

Return to top

Any Comment About This Content? Report It to Us.

 

© eexpand, All Rights Reserved.
Latest Update: November 2023