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Economy of Monaco

Economy - overview: 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 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. Monaco does not publish national income figures; the estimates below are extremely rough.

Economic development was spurred in the late 19th century with a railroad linkup to France and the opening of a casino. Monaco's economy is now primarily geared toward finance, commerce, and tourism. Low taxes have drawn many foreign companies to Monaco and account for around 50% of the $586 million annual government income (1997). Similarly, tourism accounts for close to 25% of the annual revenue, as the Principality of Monaco also has been a major center for tourism ever since its famed casino was established in 1856.

Customs, postal services, telecommunications, and banking in Monaco are governed by an economic and customs union with France. Although Monegasque coins are minted and circulated, the official currency is the euro (as of January 1999).

Though official economic statistics are not published, 1994 estimates place the national product at $788 million and the per capita income at $25,000. The unemployment rate is low, at 3.1% (1994).

Monaco is noted for its activity in the field of marine sciences. Its Oceanographic Museum, formerly directed by Jacques Cousteau, is one of the most renowned institutions of its kind in the world. Monaco imports and exports products and services from all over the world. There is no commercial agriculture in Monaco.

GDP: purchasing power parity - $870 million (1999 est.)

GDP - real growth rate: NA%

GDP - per capita: purchasing power parity - $27,000 (1999 est.)

GDP - composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): NA%

Labor force: 30,540 (January 1994)

Unemployment rate: 3.1% (1998)

Budget:
revenues: $518 million
expenditures: $531 million, including capital expenditures of $NA (1995)

Industries: tourism, construction, small-scale industrial and consumer products

Industrial production growth rate: NA%

Electricity - production: NA kWh

Electricity - production by source:
fossil fuel: NA%
hydro: NA%
nuclear: NA%
other: NA%

Electricity - consumption: NA kWh

Electricity - exports: NA kWh

Electricity - imports: NA kWh

Agriculture - products: none

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

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

Debt - external: $NA

Economic aid - recipient: $NA

Currency: 1 French franc (F) = 100 centimes

Exchange rates: euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); French francs (F) per US$1 - 5.65 (January 1999), 5.8995 (1998), 5.8367 (1997), 5.1155 (1996), 4.9915 (1995)

Fiscal year: calendar year

See also : Monaco