IMSEE Report: Positive Economic Trends in Post-pandemic Monaco
The economic impact of the ongoing pandemic is easing up for Monaco, as seen by a new report published by the IMSEE. The data, which is cumulative since 1 January, reflects the first six months of 2021 and shows a big difference compared with last year’s results.
2020 kicked off with two months of normal activity (January and February) but a period of lockdown affected the following months. 2021 began with the implementation of the vaccination campaign and the maintenance of certain health measures. Economic activity continued and the Principality was no longer in lockdown.
Monaco’s Turnover is increasing
The extreme circumstances caused by the pandemic must be kept in mind when reviewing Monaco’s turnover, which is higher when compared with last year. On 30 June 2021, it reached (excluding financial and insurance activities) 7.15 billion euros, an increase of 671 million compared to 2020, (+10.3%).
Foreign trade and Hospitality sectors still affected
Almost all sectors experienced an improvement in 2021 when compared to the first half of 2020. However, foreign trade outside France remained well below its pre-crisis level, especially imports, while exports were at the 2019 level. Overall turnover was higher than in the first half of 2019, but disparities remain between sectors of activity, particularly in hotel industry/Food & Beverage, Real Estate, and, to a lesser extent, Transport and Storage.
Employment is increasing
Employment increased significantly, but remained below 2019 levels. Despite a deficit of 3.5 million hours compared to the first half of 2019, the number of hours worked increased by 5 million compared to the first six months of 2020. At the end of the first half of 2021, there were 56,028 active jobs in the private sector, an increase of +11% compared to 2020 for the same period. The share of total Reinforced Temporary Total Unemployment (CTTR), corresponding to zero hours worked in private employment, has fallen considerably, since only 300 jobs are still supported by this system, against 2,000 for the same period per year.
More establishments are closing, while more new businesses are opening
The number of establishment closures, as well as new businesses, is rising. In the first half of 2021, the number of new establishments is up compared to last year: 409 versus 361, or +13.3%. The number of definitive closures also increased: 232 against 214, or +8.4%. The number of creations and deletions, however, remains lower than in 2019.
Hotel indicators have risen slightly, despite an occupancy rate that remains very low. New real estate is in decline, but the resale market is progressing strongly. However, the real estate market remains below its pre-crisis level overall. Air traffic is still negatively affected. On the other hand, the number of public car parks is increasing, as is the number of new car registrations, which is back to its pre-pandemic level.
Overall, the first half of the year is indicating a positive economic trend for the near future, which still remains dependent on the evolution of the pandemic.