| Basic data | |
| Capital | Monaco |
| Population | 38.35 thousand |
| Language | French |
| Religion | Christianity (86.0%), no religion (11.7%), Judaism (1.7%), other (0.6%) |
| State system | constitutional monarchy |
| Head of State | Albert Alexandre Louis Pierre Grimaldi (called Albert II) |
| Head of government | Pierre Dartout |
| Currency name | euros |
| Travel | |
| Time shift | 0 o’clock |
| Economy | 2020 |
| Nominal GDP (billion EUR) | 5.97 |
| Economic growth (%) | – 11.8 |
| Inflation (%) | ON |
| Unemployment (%) | ON |
Monaco is the second smallest (city) state in the world after the Vatican, with an area of 2.02 km2 and a population of 38,350. Its state system is a hereditary constitutional monarchy with a prince at the head of the executive power. The legislative body is the prince and a unicameral parliament (National Council) with 24 deputies elected for 5 years. The country’s economy is based on an attractive tax environment with no personal income tax, financial services and tourism. Monaco is linked by a monetary and customs union with France, which is its only neighboring country. At the same time, since 2015, the conclusion of an association agreement with the European Union has been discussed with the aim of opening access to the EU internal market for Monaco’s economic entities and developing cooperation in sectors of common interest.
This Summary Territorial Information is processed for a country that is so-called accredited. The information is provided in a basic scope.
Basic information about the territory
Subchapters:
- System of governance and political tendencies in the country
- Foreign policy of the country
- Population
The system of governance and political tendencies in the country
The Principality of Monaco (Principauté de Monaco in French) is a hereditary constitutional monarchy with the Grimaldi dynasty ruling the country since 1297 with a tendency to continue. Since 2005, the Principality of Monaco has been ruled by Prince Albert II, who is also the highest executive representative, co-legislator together with the 24-member elected National Council. The government has a total of six members – the minister of state at the head and the ministers of the interior, finance and economy, social affairs and health, environment and urban planning, and foreign relations and cooperation. The composition of the government is stated on the website of the Monaco government in the chapter Le Gouvernement. Check cancermatters to learn more about Monaco political system.
Foreign policy of the country
Monaco’s foreign policy is aimed at continuing its political independence with close economic ties to France, which also ensures the military protection of Monaco’s territory. Monaco gained formal independence from France in 1861, has been a member of the UN since 1993, and negotiations for EU membership began in 2015. In December 2018, the European Council expressed satisfaction with their progress, and in March 2019, the European Parliament issued a recommendation to the European Council and the European commission for their further continuation. The current foreign policy positions of Monaco are presented on the website of the Monaco Ministry of Foreign Affairs in the Monaco à l’International section. Check prozipcodes for Monaco defense and foreign policy.
Population
According to a statistical estimate, Monaco had 39.1 thousand at the end of December 2021. resident. The population is growing slightly, by 0.4% in 2021. In the demographic structure, the share of men is 48.9% and women 51.1%. The composition of the population according to other aspects is as follows:
Age groups:
22.1% under 25 years of age
52.0% 25-64 years
25.9% over 64 years
Nationalities:
24.9% French
22.5% Monaco
21.9% Italian
30.7% other
Religion (as estimated by the Pew Research Center):
86.0% Christianity
11.7% have no religion
1.7% Judaism
0.6% other
2. Economy
Subchapters:
- Basic data
- Public finances and the state budget
- Banking system
- Tax system
Basic data
In connection with the coronavirus crisis, the principality suffered in particular from a sharp economic drop in foreign tourism (especially from non-EU countries) and the cancellation of a number of events (sports, trade fairs, conferences) during 2020. However, the year 2021 was reflected in an improvement in the economic situation, which is evidenced by a return to balanced budget in 2021 and budget forecasts for 2022 (a slight surplus of around EUR 3 million) thanks to higher than expected revenues. The five main sectors of activity account for 62.7% of GDP: scientific and technical activities, administrative services and support (17.8% of GDP), financial services and insurance (16.7%), construction (9.9%), the real estate sector ( 9.2%), hotel and catering sector (9.1%). Monaco intends to consolidate a diversified economy and support the development of small manufacturing structures with high added value (e.g. nano-satellites) and offering favorable conditions for innovative digital firms and start-ups. Among the production branches, the production of plastic and chemical products is the most represented, which represents half of the value of the total production. Consumption is dominantly covered by imports. The foreign trade figures in the following table do not include trade with France, which the Monaco statistics do not show due to the customs union between the two countries. Monaco is the main source of employment locally, with almost 56,000 employees, of which 91.2% are in the private sector. In the public and private sector, 63% of employees are French, 14.4% Italian and 6.6% Portuguese. Only 4.1% of employees are Monaco.
| Pointer | 2019 | 2020 | 2021 | 2022 | 2023 |
| GDP growth (%) | 7.5 | -11.8 | ON | ON | ON |
| GDP/population (EUR) | 75,942.0 | 69,380 | ON | ON | ON |
| Inflation (%) | ON | ON | ON | ON | ON |
| Unemployment (%) | ON | ON | ON | ON | ON |
| Export of goods (billion EUR) | 1.2 | 0.9 | 1.2 | ON | ON |
| Import of goods (billion EUR) | 2.5 | 1.4 | 1.8 | ON | ON |
| Trade balance (billion EUR) | -1.3 | -0.5 | -0.6 | ON | ON |
| Industrial production (% change) | -6.0 | ON | ON | ON | ON |
| Population (thousands) | 38.3 | 0 | 39.1 | ON | ON |
| Competitiveness | ON | ON | ON | ON | ON |
| OECD export risk | ON | ON | ON | ON | ON |
Source: EIU, OECD, IMD, IMSEE
Public finance and state budget
In the years up to 2019, public finances had a positive development. On average, the surplus of the state budget was around 2% of its income, almost half of which is accounted for by VAT collection. Data for 2020 was not yet available at the time of the deadline. Indicators linked to the balance of payments are not reported by Monaco and are therefore included in French statistics. In 2021, the principality’s amending budget shows revenues of €1.717 billion and expenses of €1.726 billion, i.e. a deficit of just under €9 million, a far cry from the initial forecast of a deficit of €11million resulting from expenditure incurred in connection with the Covid-19 pandemic.