Economy of Monaco
From Wikipedia, the free encyclopedia
This is an overview of the economy of Monaco. Monaco, situated on the French coast of the Mediterranean Sea, is a popular resort, attracting tourists to its casino and pleasant climate. The Principality has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state has no income tax and low business taxes and thrives as a tax haven both for individuals who have established residence and for foreign companies that have set up businesses and offices. The state retains monopolies in a number of sectors, including tobacco, the telephone network, and the postal service. Living standards are high, roughly comparable to those in prosperous French metropolitan areas. Monaco does not publish national income figures; the estimates below are extremely rough.
Economic development was spurred in the late 19th century with a railroad linkup to France and the opening of a casino. Monaco's economy is now primarily geared toward finance, commerce, and tourism. Low taxes have drawn many foreign companies to Monaco and account for around 50% of the $586 million annual government income (1997). Similarly, tourism accounts for close to 25% of the annual revenue, as the Principality of Monaco also has been a major center for tourism ever since its famed casino was established in 1856. The casino is alluded to in the ABBA song Money, money, money.
Customs, postal services, telecommunications, and banking in Monaco are governed by an economic and customs union with France. Although Monegasque coins are minted and circulated, the official currency is the euro (as of January 1999).
Though official economic statistics are not published, year 2000 estimates place the national product at $870 million and the per capita income at $27,000. The unemployment rate is around 22%, as of 1999.[1]
Monaco is noted for its activity in the field of marine sciences. Its Oceanographic Museum, formerly directed by Jacques-Yves Cousteau, is one of the most renowned institutions of its kind in the world. Monaco imports and exports products and services from all over the world. There is no commercial agriculture in Monaco.
