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 the latest available data from the World Bank, GDP contracted by an estimated 11.7% in 2020. Its value stood at EUR 5.97 billion, a level slightly below that of 2018 (Statistics Monaco). Three sectors produced more than half of the wealth generated in the Principality: scientific and technical activities, administrative and support services (20.3 %); financial and insurance activities (18.3%); construction (11.4%, entering in the top three following a decline in the real estate sector).

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 (+8%) in 2020, which contributed 14% of the wealth produced (Statistics Monaco). In 2021, revenues increased by 13.3%, exceeding EUR 16 billion for the first time. The wholesale and trade sector grew 20.9% year-on-year, whereas the accommodation and food services sector has not returned yet to its pre-pandemic level (albeit it grew 36.4% compared to the previous year). The amount 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. 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. In December 2021, there were 56,999 employees in the Principality's private sector, that is an increase of more than 2,000 employees with respect to the previous year, exceeding the pre-crisis level (data by the Monegasque Institute of Statistics and Economic Studies). Monaco has one of the highest levels of GDP per capita in the world, estimated at EUR 69,380 in 2020.

Monetary Indicators	2015	2016	2017	2018	2019
Euro (EUR) - Average Annual Exchange Rate For 1 MUR	0.03	0.03	0.03	0.02	0.03

Source: World Bank - Latest available data.

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Latest Update: February 2023