Monaco’s Economy on the Slow Road to Recovery

In May 2020, the business climate in Monaco showed a slight recovery compared to April, but numbers are still well below average, according to a new survey published by the IMSEE. Shops reopened on 4 May in the Principality and the IMSEE’s survey of businesses was the first economic barometer to be conducted after Monaco came out of lockdown.

With 800 establishments and 1.5 billion euros in turnover, retail trade represents an important part of the Monegasque economy. According to the traders surveyed, in May 2020, the business climate showed a slight recovery in most sectors, but remained down in retail and car repair sectors. 

The survey’s indicator gained 3 points compared to April. This small improvement is mainly due to a more positive general outlook for future activity and expected employment. Despite this increase, general outlook still remains below average. 

Sales in May were comparable to that of April and remained at the lowest level ever. Forecast sales are growing strongly while still remaining below their long-term average. The level of stock is similar to that of April. Past price balances declined, while forecast price balances sharply rebounded and are above normal. Employment is improving but remains well below its long-term average. Expected employment is moderately growing but is still below its normal levels. 

Monaco’s cash flow situation, which was deemed particularly difficult from March onwards, continued to decline compared to average. The number of customers, which was greatly affected by the recent closing of non-essential activities and businesses during lockdown, improved in May.

The IMSEE (Monegasque Institute of Statistics and Economic Studies) was created in 2011 by the Prince’s Government with the mission of promoting knowledge of the Principality’s economic and social environment.  The IMSEE is known as the observer of all Monegasque economic activity.