Monaco is a small country with France as its close neighbour. More than 10% of its territory had previously belonged to the sea, but had been drained. Monaco’s economy is made up of numerous hotels, banks, representative offices of foreign companies and industry.
Economy of Monaco: main sectors of income
In the past, casinos in Monte Carlo and postage stamps brought almost all the revenue to the country’s economy. Now the situation has changed and the gambling business in Monaco is no longer so profitable. A huge contribution to the welfare of the Principality belongs to industry and commerce. Together these segments contribute 70% of capital to the economy. Nearly one in two people works in the manufacturing sector – that’s about 20 thousand people. Chemical, pharmaceutical, electronic and electromechanical industries, metallurgy are developed here.
Traditional brands from Monaco are also popular; they produce various devices which are delivered to aircraft building companies in France and NASA. Passenger planes “Concord” have relays, fans and the switches made in a princedom. Here they produce various household appliances, which are exported to Western European markets.
Monaco is home to light industry enterprises, pharmaceutical companies and factories producing construction materials. Local cosmetics, lingerie and clothing are valued in many countries for their quality.
20% of the income to the treasury comes from the tourism industry. About 500 thousand travelers come here every year. A large number of residents are involved in the service sector and work in numerous hotels. Monaco provides ideal conditions for holidaymakers. There are local sights, zoological and exotic gardens. You can spend time in restaurants, yacht clubs, casinos, and play golf. Back in the 70s of the last century, the authorities of the Principality set as a priority the improvement of the sphere of tourism business and this course is still kept up to date.
The Sea Bathing Society contributes to Monaco’s economic development. The company owns large hotels, casinos and shares in the Opera House, gambling houses, restaurants and sports clubs.
To facilitate business in the country there are no taxes on movable and immovable property, income of citizens. For corporations, there is a minimum interest on capital turnover. But due to the large number of representative offices from different countries, Monaco’s economy has a good income. There are more than 800 foreign companies and 50 financial institutions, for which the state tax system is beneficial.
Investors from different countries tend to invest in a small principality, which creates optimal conditions for foreign capital. As a result, Monaco is a prosperous country with a steadily growing economy and standard of living.