Monaco’s economy is growing steadily
The Monegasque GDP (gross domestic product), for the year 2016 amounted to 5.85 billion euros against 5.64 billion in 2015. No matter how you look at it, Monaco’s economy did well in 2016, relative to its neighbours, relative to Europe and relative to the world. Monaco’s growth is nearly three times that of France. Last year, Monegasque growth was 3.2% against 1.1% for France, according to official statistics.
Recorded growth of 3.2%, measured by GDP is above the European Union average of 1.9%.
Monaco’s growth also exceeds that of world GDP (+ 2.4%).
It is true that since 2013, the pace of growth in the Principality has slowed down but so it has elsewhere and the growth in 2016 is all the more remarkable as Monaco is between France and Italy, two countries with lower growth rates.
Construction and Other Services Lead the Way
Out of an economy of the order of 6 billion euros with just under a billion euros of construction activity growing at 16.9%, and about half that amount in “Other services” growing at 39.3 %, then it is easy to see how Monaco’s economy has outperformed others.
The growth in 2016 is almost entirely due to the performance of two business sectors of the Principality: Construction and Other service activities.
Largest Sectors of the Monegasque Economy
The share of building and real estate continues to grow, according to official statistics.
Banking-insurance still remained the first economic activity in Monaco in 2016 but if one aggregates the construction and the real estate activities, these two property sectors realized together 23.1% of the GDP (1.3 billion euros) compared with financial and insurance activities at $ 950 million.
And the performance of the Monaco real estate sector has been in sharp contrast to neighbouring real estate markets which have been in the doldrums.
The top three economic sectors of the Principality account for almost half (45.3%) of the wealth produced. They are:
- Financial and Insurance Activities
- Construction and Real estate
- Scientific and Technical Activities, Administrative and support Services
Monaco is an important Employment Basin
Employment is progressing in 2016, in both private and public sectors. There were 491 additional employees (+ 0.9%) in December. The wage bill increases (+ 2.5%). It accounts for almost half of GDP (47.4%). This corresponds to the redistribution in the form of wages and contributions of the annually created wealth.
Monaco’s GDP per capita is ranked 5th in the world.
The Principality of Monaco with approximately 38,000 residents is an important employment basin; there is a lot of work to be done and there are over 50,000 employees needed to do it, of which over 40,000 are domiciled outside Monaco.
About 22% of the workforce in Monaco is involved in activities related to the organization of professional events, congresses and administrative services.
Source of information and statistics in this article is IMSEE. IMSEE (Monegasque Institute of Statistics and Economic Studies) is a major contributor to the economic information that is crucial to the good governance of the Principality and helps track the future of the country.
