Monaco: Economic Outline

Economic Indicators

The Principality of Monaco has 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 2022, the GDP of the Principality of Monaco reached EUR 8.34 billion. Like the other economic indicators for 2022, it continued to grow at a sustained rate after the strong recovery observed in 2021 following the health crisis. In fact, despite the rise in the inflation rate, GDP grew by 11.1% in volume terms compared to 2021, which represents an increase in real terms of more than EUR 740 million. Over the decade, GDP has grown by around 50%, an average annual increase of 4.6%. Three sectors produced more than half of the wealth generated in the Principality: scientific and technical activities, administrative and support services (20.9%); financial and insurance activities (17.6%); and wholesale trade (10.6%, entering in the top three ahead of the real estate and construction sectors).

According to Statistics Monaco, in 2023, state revenues outpaced expenditures, leading to a budget surplus of EUR 126.3 million, up from the previous year. Although ordinary expenditures increased significantly by 13.5% (EUR 143.0 million), this rise was nearly balanced by a reduction in capital expenditures, down by 11.5% (EUR 112.7 million) compared to the previous year. In 2023, State revenues reached nearly EUR 2.2 billion, marking a EUR 124.5 million increase (+6.0%). This growth is primarily attributed to a EUR 232.8 million rise in tax revenues, notably from commercial transactions, which increased by EUR 152.8 million (15.3%). At the end of the 2023 financial year, budget expenditures experienced moderate growth of EUR 30.3 million (+1.5%). This increase was primarily driven by a EUR 88.5 million rise in public intervention expenditures. Operating expenses also saw an increase (+EUR 54.6 million), attributed to common expenditures and service provision. However, capital and investment expenditures decreased by EUR 112.7 million, mainly due to exceptional transactions recorded in 2022. Excluding these transactions, this component would have increased by EUR 9.3 million. As of December 2023, the assets of the Constitutional Reserve Fund total EUR 7.0 billion.

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 2022, there was a real growth of 8.2% in GDP per capita, reaching EUR 91,353. Additionally, GDP per employee, an indicator of economic productivity, saw a real increase of 6.8%, reaching EUR 137,831.

Source: World Bank - Latest available data.

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Latest Update: May 2024