Editing Economy of Monaco

{{Short description|none}}
{{Infobox economy
| country = Monaco
| image = Monaco 02.jpg
| image_size = 300px
| currency = [[Euro]] (EUR, €)
| year = calendar year
| organs = [[European Union Customs Union|EUCU]]
| group = [[Developed country|Developed/Advanced]] [[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>
| population = {{decrease}} 38,367 (31 December 2023)<ref>{{cite web |title=Population census|url=https://www.monacostatistics.mc/Population-and-employment/Population-census|website=monacostatistics.mc |publisher=[[Monaco Statistics]] |access-date=3 October 2024}}</ref>
| gdp = {{plainlist|
*{{increase}} $8.784 billion (nominal, 2022)<ref>{{cite web |title=GDP (current US$) – Monaco |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=MC |website=data.worldbank.org |publisher=[[World Bank]]|access-date=3 October 2024}}</ref>
*$7.672 billion ([[Purchasing power parity|PPP]], 2015 {{abbr|est.|estimate}})<ref name="CIAWFMN">{{cite web |title=Monaco |url=https://www.cia.gov/the-world-factbook/countries/monaco/#economy |website=cia.gov |publisher=[[Central Intelligence Agency]] |access-date=3 October 2024}}</ref>}}
| growth = {{plainlist|
* {{decrease}} -13.01% (2020 {{abbr|est.|estimate}})<ref name="CIAWFMN"/>
* {{increase}} 21.87% (2021 {{abbr|est.|estimate}})<ref name="CIAWFMN"/>
* {{increase}} 11.1% (2022 {{abbr|est.|estimate}})<ref name="CIAWFMN"/>
}}
| per capita = {{plainlist|
*{{increase}} $240,862 (nominal, 2022)<ref>{{cite web |title=GDP per capita (current US$) – Monaco |url=https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=MC&name_desc=false |website=data.worldbank.org |publisher=[[World Bank]] |access-date=3 October 2024}}</ref>
*{{increase}} $115,700 (PPP, 2015 {{abbr|est.|estimate}})<ref name="CIAWFMN"/>}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 0%
*[[Secondary sector of the economy|industry]]: 12.3%
*[[Tertiary sector of the economy|services]]: 87.7%
*(2022 {{abbr|est.|estimate}})<ref name="CIAWFMN"/>
| occupations = {{plainlist|
*agriculture: 0.4%
*industry: 14.1%
*services: 85.1%
*(2020 est.)<ref name="monacostatistics_GDP">{{cite web |title= Monaco GDP|url=https://www.monacostatistics.mc/Economy-and-Finance/GDP|website=monacostatistics.mc |publisher= Monaco Statistics |access-date=20 April 2023}}</ref>}}
| unemployment = 2% (2012)<ref name="CIAWFMN"/>
| average gross salary = 
| gross median =
| average net salary =
| net median = 
| industries = banking, real estate, insurance, tourism, construction, small-scale industrial and consumer products<ref name="monacostatistics_GDP"/>
| edbr       = 
| exports    = $1.53 billion (2022 est.)<ref>{{cite web |title= Monaco Foreign Trade |url=https://www.monacostatistics.mc/Economy-and-Finance/Foreign-Trade|website=monacostatistics.mc |publisher= Monaco Statistics |access-date=20 April 2023}}</ref>{{refn|group=note|full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France}}
| export-goods = 
| export-partners = 
| imports    = $2.3 billion (2022 est.)<ref>{{cite web |title= Monaco Foreign Trade|url=https://www.monacostatistics.mc/Economy-and-Finance/Foreign-Trade|website=monacostatistics.mc |publisher= Monaco Statistics |access-date=20 April 2023}}</ref>{{refn|group=note|full customs integration with France, which collects and rebates Monegasque trade duties; also participates in EU market system through customs union with France}}
| import-goods = 
| import-partners = 
| FDI        =
| current account = 
| gross external debt = NA<ref name="CIAWFMN"/>
| NIIP       = 
| debt       = 
| balance    = +0.01% (of GDP) (2021 est.)<ref name="monacostatistics_GDP"/>
| revenue    = 1,769.7 million (2021 est.)<ref>{{cite web |title= Monaco GDP|url= https://www.monacostatistics.mc/Economy-and-Finance/GDP |website=monacostatistics.mc |publisher= Monaco Statistics |access-date=20 April 2023}}</ref>
| expenses   = 1,761.7 million(2021 est.)<ref name="monacostatistics_GDP"/>
| aid        = 
| credit     = 
| reserves   = 
| cianame    = monaco
| spelling   = 
}}
| labor = {{plainlist|
*{{increase}} 63,479 (2023)<ref>{{cite web | title=Employment indicators 2023 | url=https://www.monacostatistics.mc/Population-and-employment/Employment | website=monacostatistics.mc | publisher=[[Monaco Statistics]] | access-date=3 October 2024}}</ref>
*47.9% employment rate (2016)<ref>{{cite web |title=Employment to population ratio, 15+, total (%) (national estimate) – Monaco |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=MC&name_desc=false |website=data.worldbank.org |publisher=[[World Bank]] |access-date=3 October 2024}}</ref>
}}
| unemployment = 26.6% youth unemployment (2016 {{abbr|est.|estimate}})<ref name="CIAWFMN"/>
}}
The '''economy of Monaco''' is reliant on tourism and banking.<ref name="ciaworldfactbook">{{cite web |title=Monaco |url=https://www.cia.gov/the-world-factbook/countries/monaco |access-date=3 October 2024 |website=cia.gov |publisher=[[Central Intelligence Agency]]}}</ref> [[Monaco]], situated on the French coast of the [[Mediterranean Sea]], is a popular resort, attracting tourists to its casino and pleasant climate.

The [[Principality]] has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. 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. The state retains [[Monopoly|monopolies]] in a number of sectors, including gambling, tobacco, the telephone network, and the postal service.<ref>{{cite web | url=https://en.gouv.mc/Portail-du-Gouvernement/Government-Institutions/The-Government/Ministry-of-Finance-and-Economy/Tobacco-and-Matches-Board | title=Tobacco and Matches Board / Ministry of Finance and Economy / The Government / Government & Institutions / Portail du Gouvernement – Monaco }}</ref><ref>{{cite web |title=Anti-money laundering and counter-terrorist financing measures MONACO Fifth Round Mutual Evaluation Report |url=https://www.fatf-gafi.org/content/dam/fatf-gafi/fsrb-mer/MONEYVAL-Monaco-Mutual-Evaluation-Report-2022.pdf.coredownload.inline.pdf |website=www.fatf-gafi.org |access-date=28 March 2025}}</ref>

[[File: Rubber discs for suctions-5.jpg|thumbnail|right|Denture adhesion rings made in Monaco, early to mid 20th century]]

==Background==
Economic development was spurred in the late 19th century with the opening of the rail link to France and the [[Monte Carlo Casino]]. Monaco's economy is now primarily geared toward finance, services, and real estate.

==Modern times==
Low taxes have drawn many foreign individuals to Monaco and account for around 75% of the $7.78  billion annual GDP income in (2021).{{how?|date=January 2024}}<!-- Taxes cannot "account for a percent of GDP". This is incomprehensible and should be rephrased. Also, what is "GDP income"? --> Similarly, tourism accounts for close to 15% of the annual revenue, as the Principality of Monaco also has been a major center for tourism ever since the famed [[Monte Carlo Casino]] was established in 1856. 

Financial and insurance activities, along with scientific, support-administrative, activities are the main contributors to the GDP of Monaco. Wholesale trades (10%), construction (9.1%) and real estate activities (7.8%) also contribute highly to the country's [[Gross domestic product|GDP]].<ref>{{Cite web|url=https://www.monacostatistics.mc/Economy-and-Finance/|title=Economy and Finance / IMSEE – Monaco IMSEE|website=www.monacostatistics.mc}}</ref> Monaco real estate is known to be one of the most expensive in the world.<ref>{{cite web | url=https://robbreport.com/shelter/monaco-most-expensive-buy-home-1234604753/ | title=Monaco is the World's Most Expensive Place to Buy a Home for the Fourth Year in a Row | date=April 2021 }}</ref><ref>{{Cite web|url=https://www.google.com/search?q=monaco+most+expensive+real+estate+forbes|title=monaco most expensive real estate forbes – Google Search|website=www.google.com}}</ref><ref>{{cite web | url=https://www.forbesindia.com/article/forbes-lifes/monaco-paradise-city/52333/1 | title=Monaco: Paradise City }}</ref><ref>{{cite web | url=https://www.scmp.com/magazines/style/luxury/article/3144522/monaco-beats-hong-kong-most-expensive-real-estate-planet-how | title=The only place with more expensive property than Hong Kong? Monaco | date=10 August 2021 }}</ref><ref>{{cite web | url=https://en.savills.mc/insight-and-opinion/savills-news/300631-0/monaco-still-the-most-expensive-real-estate-market-in-the-world | title=Savills Monaco &#124; Monaco still the most expensive real estate market in the world | date=24 July 2017 }}</ref>  Banking sector of Monaco is rather large: in 2015 consolidated banking assets 8.42 times exceeded the country's GDP. Banks operating in Monaco traditionally specialize in private banking, asset and wealth management services. Wholesale trade, construction and real estate sectors come afterward in the ranking.<ref>{{cite web | url=https://www.monacostatistics.mc/Economy-and-Finance/GDP | title=GDP / Economy and Finance / IMSEE – Monaco IMSEE }}</ref>

An economic and customs union with France governs customs, postal services, telecommunications, and banking in Monaco. Before the [[euro]], Monaco used the [[Monegasque franc]], which itself was pegged to the [[French franc]]. Now part of the [[Eurozone]], but not the EU, Monaco mints [[Monegasque euro coins|its own euro coins]].

All residents pay tax in the form of 20% [[value-added tax]] on all goods and services.<ref>Genta, Evelyne (Monaco Ambassador to the UK) ''Monaco Might Not Charge Residents Income Tax, But it's No Tax Haven'' ''The Telegraph'' 16 Feb 2010</ref>

Monaco is noted for its activity in the field of marine sciences. Its [[Oceanographic Museum]], formerly directed by [[Jacques-Yves Cousteau]], is one of the most renowned institutions of its kind in the world. Monaco import and exports products and services from all over the world. There is no commercial agriculture in Monaco; it is 100% urban.

==Tax haven==
Monaco levies no income tax on individuals. The absence of a personal income tax in the [[principality]] has attracted to it a considerable number of wealthy "tax refugee" residents from European countries who derive the majority of their income from activity outside Monaco;<ref>{{cite web |last1=Neate |first1=Rupert |title=Monaco builds into the Med to house new throng of super-rich |url=https://www.theguardian.com/business/2017/nov/19/monaco-builds-into-the-med-to-house-new-throng-of-super-rich |website=The Guardian |access-date=15 May 2024}}</ref> celebrities such as [[Formula One]] drivers attract most of the attention, but the vast majority of them are less well-known business people.

In 2000, a report by the French parliamentarians, [[Arnaud Montebourg]] and [[Vincent Peillon]], alleged that Monaco had lax policies with respect to money laundering, including within its famed casino, and that the government of Monaco had been placing political pressure on the judiciary so that alleged crimes were not properly investigated.<ref>{{cite web |last1=Basso |first1=Davide |title=France still sends €100 million a year to 'millionaire haven' Monaco |url=https://www.euractiv.com/section/economy-jobs/news/france-still-sends-e100-million-a-year-to-millionaire-haven-monaco/ |website=Euractiv |access-date=15 May 2024}}</ref>

In 1998, the [[OECD|Organisation for Economic Co-operation and Development]] (OECD) issued a first report on the consequences of the tax havens' financial systems. Monaco did not appear in the list of these territories until 2004, when OECD became indignant regarding the Monegasque situation and denounced it in its last report, as well as Andorra, Liechtenstein, Liberia and the Marshall Islands, underlining its lack of co-operation as regards to financial information disclosure and availability.

In 2000, the [[Financial Action Task Force]] on Money Laundering (FATF) stated: "The anti-money laundering system in Monaco is comprehensive. However, difficulties have been encountered with Monaco by countries in international investigations on serious crimes that appear to be linked also with tax matters. In addition, the FIU of Monaco (SICCFIN) suffers a great lack of adequate resources. The authorities of Monaco have stated that they will provide additional resources to SICCFIN." The Principality is no longer blamed in the 2005 FATF report, as well as all other territories. In 2003, the International Monetary Fund (IMF) has identified Monaco, along with 36 other territories, as a tax haven but Monaco came out of that list in 2009.<ref>{{cite web | url=https://www.latribune.fr/entreprises-finance/banques-finance/industrie-financiere/20090924trib000425657/paradis-fiscaux-monaco-retire-de-la-liste-grise-de-l-ocde-la-suisse-devrait-suivre.html | title=Paradis fiscaux: Monaco retiré de la liste grise de l'OCDE, la Suisse devrait suivre | date=24 September 2009 }}</ref><ref>{{Cite web |title=Huit pays disparaissent de la liste des paradis fiscaux |url=https://www.lecho.be/economie-politique/europe/economie/huit-pays-disparaissent-de-la-liste-des-paradis-fiscaux/9974841.html |access-date=2023-05-11 |website=lecho.be}}</ref><ref>{{cite web | url=https://taxation-customs.ec.europa.eu/common-eu-list-third-country-jurisdictions-tax-purposes_fr | title=Common EU list of third country jurisdictions for tax purposes }}</ref>

In June 2024, due to concerns about money laundering and terror financing, the FATF added Monaco to a list of countries "under increased monitoring." In a statement, the FATF said that the country needed to "address strategic deficiencies."<ref>{{cite web |title=Monaco added to money laundering 'gray list' |url=https://www.dw.com/en/monaco-added-to-money-laundering-gray-list/a-69507747 |website=Deutsche Welle |access-date=4 July 2024}}</ref>

==National enterprises==
Monaco's economy is also based on national companies, which combined produce over a billion in profit every year. Among the most profitable and well-known companies outside Monaco are the [[Société des bains de mer de Monaco|Société des bains de mer]], the bank [[UBS|UBS Monaco]], the [[auction house]] Monaco Legend Group and the media conglomerate [[Lagardère News]].<ref>{{cite web|url=https://www.hithorizons.com/eu/analyses/country-statistics/monaco|title=Industry Breakdown of Companies in Monaco|website=HitHorizons}}</ref><ref>{{cite web | url=https://www.monaco-tribune.com/en/2023/03/the-monegasque-economy-in-2022-8-key-figures/ | title=The Monegasque economy in 2022: 8 key figures | date=16 March 2023 }}</ref>

==Companies==
In 2022, the sector with the highest number of companies registered in Monaco is Finance, Insurance, and Real Estate with 4,497 companies followed by Services with 1,895 and 1,184 companies respectively.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/monaco | title=Industry Breakdown of Companies in Monaco | website=HitHorizons}}</ref>

==Public finances==
In 2023 Monaco recorded government revenues of 2.19 billion EUR and expenses of 2.07 billion EUR, for a 126 million EUR budget surplus.<ref>{{cite web|url=https://www.monacostatistics.mc/content/download/524913/6014096/file/Focus%20Finances%20publiques%202024%20EN.pdf|title=Public finances: 2023|author=Monaco Statistics|page=1/2|date=May 2024|access-date=2024-11-23}}</ref> 

The state's fiscal reserves, the Constitutional Reserve Fund (CRF), reached a balance of 7 billion EUR in 2023, up from 5.7 billion EUR in 2019.<ref>{{cite web|url=https://www.monacostatistics.mc/content/download/524913/6014096/file/Focus%20Finances%20publiques%202024%20EN.pdf|title=Public finances: 2023|author=Monaco Statistics|page=2/2|date=May 2024|access-date=2024-11-23}}</ref> 

==See also==
* [[Department of Finance and Economy (Monaco)]]
* [[Economy of Europe]]

==Notes==
{{reflist|group=note}}

==References==
{{reflist}}

==External links==
* [https://money.guardian.co.uk/tax/story/0,1456,1152758,00.html Guardian article on tax havens, discussion of Monaco]
* [https://www.cia.gov/the-world-factbook/countries/monaco/ CIA World Factbook entry on Monaco]
* [https://www.monaco-consulate.com/?page_id=887  Tax system of Monaco]
* [https://www.monacostatistics.mc/Economy-and-Finance/GDP GDP / Economy and Finance / IMSEE – Monaco IMSEE]
* [https://taxation-customs.ec.europa.eu/common-eu-list-third-country-jurisdictions-tax-purposes_fr Common EU list of third country jurisdictions for tax purposes]
* {{cite news |url=https://www.latribune.fr/entreprises-finance/banques-finance/industrie-financiere/20090924trib000425657/paradis-fiscaux-monaco-retire-de-la-liste-grise-de-l-ocde-la-suisse-devrait-suivre.html |trans-title=Tax havens: Monaco removed from OECD grey list, Switzerland to follow |title=Paradis fiscaux: Monaco retiré de la liste grise de l'OCDE, la Suisse devrait suivre}}

{{Monaco topics}}
{{Economy of Europe}}

[[Category:Economy of Monaco| ]]
[[Category:Economies of Europe by country|Monaco]]