Monaco Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Monaco, bordering France on the Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. The principality also is a banking center and has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state retains monopolies in a number of sectors, including tobacco, the telephone network, and the postal service. Living standards are high, roughly comparable to those in prosperous French metropolitan areas.

 

The state has no income tax and low business taxes and thrives as a tax haven both for individuals who have established residence and for foreign companies that have set up businesses and offices. Monaco, however, is not a tax-free shelter; it charges nearly 20% value-added tax, collects stamp duties, and companies face a 33% tax on profits unless they can show that three-quarters of profits are generated within the principality. Monaco was formally removed from the OECD's "grey list" of uncooperative tax jurisdictions in late 2009, but continues to face international pressure to abandon its banking secrecy laws and help combat tax evasion. In October 2014, Monaco officially became the 84th jurisdiction participating in the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters, an effort to combat offshore tax avoidance and evasion.

 

Monaco's reliance on tourism and banking for its economic growth has left it vulnerable to downturns in France and other European economies which are the principality's main trade partners. In 2009, Monaco's GDP fell by 11.5% as the euro-zone crisis precipitated a sharp drop in tourism and retail activity and home sales. A modest recovery ensued in 2010 and intensified in 2013, with GDP growth of more than 9%, but Monaco's economic prospects remain uncertain.

Real GDP (purchasing power parity)

$7.672 billion (2015 est.)

$7.279 billion (2014 est.)

$6.79 billion (2013 est.)

note: data are in 2015 US dollars

Real GDP growth rate

5.4% (2015 est.)

7.2% (2014 est.)

9.6% (2013 est.)

Real GDP per capita

$115,700 (2015 est.)

$109,200 (2014 est.)

$101,900 (2013 est.)

GDP (official exchange rate)

$6.006 billion (2015 est.)

Inflation rate (consumer prices)

1.5% (2010)

GDP - composition, by sector of origin

agriculture: 0% (2013)

industry: 14% (2013)

services: 86% (2013)

Agricultural products

none

Industries

banking, insurance, tourism, construction, small-scale industrial and consumer products

Industrial production growth rate

6.8% (2015)

Labor force

52,000 (2014 est.)

note: includes all foreign workers

Labor force - by occupation

agriculture: 0%

industry: 16.1%

services: 83.9% (2012 est.)

Unemployment rate

2% (2012)

Youth unemployment rate (ages 15-24)

total: 26.6%

male: 25.7%

female: 27.9% (2016 est.)

Population below poverty line

N/A

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 896.3 million (2011 est.)

expenditures: 953.6 million (2011 est.)

Budget surplus (+) or deficit (-)

-1% (of GDP) (2011 est.)

Taxes and other revenues

14.9% (of GDP) (2011 est.)

Fiscal year

calendar year

Exports

$964.6 million (2017 est.)

$1.115 billion (2011)

note: full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France

Exports - partners

Italy 19%, Germany 14%, United Kingdom 9%, Switzerland 9%, Spain 8%, United States 6%, Belgium 5%

(2019)

Exports - commodities

jewelry, perfumes, watches, packaged medicines, plastic products (2019)

Imports

$1.371 billion (2017 est.)

$1.162 billion (2011 est.)

note: full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France

Imports - partners

Italy 34%, Switzerland 16%, Germany 9%, United Kingdom 7% (2019)

Imports - commodities

jewelry, recreational boats, cars and vehicle parts, watches, general wares (2019)

Debt - external

 NA

Exchange rates

euros (EUR) per US dollar -

0.885 (2017 est.)

0.903 (2016 est.)

0.9214 (2015 est.)

0.885 (2014 est.)

0.7634 (2013 est.)

NOTE: The information regarding Monaco on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Monaco 2022 information contained here. All suggestions for corrections of any errors about Monaco 2022 should be addressed to the CIA or the source cited on each page.