Monaco's economy in 2023 showcases a dynamic and resilient landscape, marked by significant growth and diversification across various sectors. This analysis draws from the latest statistics and reports to provide an in-depth look at the economic performance of this small yet influential principality.
In the first half of 2023, Monaco demonstrated a robust economic performance. The majority of indicators for the Monegasque economy continued to grow, with sales exceeding 10 billion euros and the cumulative number of hours worked surpassing 50 million. This growth was highlighted by sharp increases in key tourism indicators and new car registrations.
Monaco's GDP for 2022 was 8.34 billion euros, a significant increase from 7.29 billion in 2021. This growth, adjusted for inflation, marked an 11.1% rise from the previous year. In the first half of 2023, Monaco's revenue reached an unprecedented milestone, surpassing 10 billion euros for the first time. This was a result of a strong economic performance, with a 10.7% increase in revenue compared to the same period in the previous year. Growth drivers included scientific and technical activities, administrative and support services activities, and notably construction support activitie.
The trade volume in the first half of 2023 saw a significant increase of 16.6%, totaling 1.8 billion euros. This growth was a recovery from the drop experienced in 2020, largely driven by both exports and imports. Employment also saw expansion, with the private sector recording over 63,500 salaried jobs, marking a 4.4% increase from the previous year. Employment growth was observed across most sectors, particularly in the Information and communication sector, which led the way with a 16.5% increase in jobs.
Monaco's economic diversification efforts were evident in the first half of 2023. There was an 18.9% increase in new establishments compared to the previous year, with many new businesses engaged in scientific and technical activities, administrative and support services activities, and other service activities. The tourism sector experienced a substantial boost, with a 6.4% increase in occupied hotel rooms and a cumulative occupancy rate of 55.4%. Individual arrivals surged by 45.2%, though the average length of stay shortened slightly to 2.5 days.
The real estate market in Monaco remained vibrant despite a decrease in the number of new property sales compared to 2022. The value of sales approached 600 million euros, surpassing the previous year’s record of 342.1 million euros. In the financial sector, despite a slight decrease in the amount of deposits, total assets under management by banks increased by 5.5%. The number of banks in Monaco decreased by 6.9%, reflecting ongoing changes and consolidation in the financial industry.
The transportation sector saw a 24.6% increase in vehicle registrations in mid-2023, with electric and low-polluting vehicles gaining popularity. Helicopter traffic experienced a minor decline of 4.1% in the second quarter. Public services also witnessed growth, particularly in the use of public car parks, with ticket usage rising by 10.3%.
In 2023, Monaco's economy displays significant resilience and growth, driven by diversification efforts and strong performance across multiple sectors. The principality's economic landscape is characterized by robust revenue growth, a buoyant job market, vibrant real estate, and a resilient financial sector. These factors contribute to Monaco's position as a dynamic economic player on the global stage, despite its small geographical size.
Phil Schneider
