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Monaco

Monaco Economy Stats

jaacosta47

Author: jaacosta47

The Principality of Monaco has limited land area to have capacity for new manufacturing firms. Nonetheless, there have been significant achievements during the “normalization process” in Monaco. It used to be in the list of the Organization for Economic Cooperation and Development’s non-cooperative tax shelters. Officials found it difficult to discard this perception despite efforts to gain the nod of principal international institutions. The new image of Monaco, which is quite notorious for lack of transparency, is still fogged up by its financial legislation. It is a refuge for people who do not pay income or inheritance taxes except for US and French nationals because of an accord signed 50 years ago signed by General de Gaulle and the United States.

The main resources of Monaco come from the VAT (sales tax), corporate and property transfer taxes as explained by State Minister Michel Roger. It is not in the listings of the OECD and the Financial Action Task Force anymore. However, it is still under scrutiny by the Tax Justice Network, a coalition of researchers and activists fighting the negative impact of tax avoidance and tax havens. Majority of companies come from the service sector with financial services owning the largest share. They represent 16 percent of the GDP even if the ratio has decreased over the years. 39 international banking institutions and 51 trust corporations manage about 100 million Euro currencies in deposits and investments. The industrial sector represents only 6.2 percent of the GDP.

Pressure is mounting on Monaco as world powers have launched a new war against tax evasion. Members of the G8 agreed to an automatic exchange of information for tax purposes during their recent meet in Northern Ireland. Monaco will be forced to follow more stringent policies.

Overview:

bordering France on the Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. The principality also is a major banking center and 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. Monaco, however, is not a tax-free shelter; it charges nearly 20% value-added tax, collects stamp duties, and companies face a 33% tax on profits unless they can show that three-quarters of profits are generated within the principality. Monaco was formally removed from the OECD's "grey list" of uncooperative tax jurisdictions in late 2009, but continues to face international pressure to abandon its banking secrecy laws and help combat tax evasion. 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.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • Exports per capita: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms. Figures expressed per capita for the same year.
  • Fiscal year: The beginning and ending months for a country's accounting period of 12 months, which often is the calendar year but which may begin in any month. All yearly references are for the calendar year (CY) unless indicated as a noncalendar fiscal year (FY).
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Composition, by sector of origin > Services: This entry is derived from Economy > GDP > Composition, by sector of origin, which shows where production takes place in an economy. The distribution gives the percentage contribution of agriculture, industry, and services to total GDP, and will total 100 percent of GDP if the data are complete. Agriculture includes farming, fishing, and forestry. Industry includes mining, manufacturing, energy production, and construction. Services cover government activities, communications, transportation, finance, and all other private economic activities that do not produce material goods.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Figures expressed per capita for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Tourist arrivals > Per capita: International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead. Sources and collection methods for arrivals differ across countries. In some cases data are from border statistics (police, immigration, and the like) and supplemented by border surveys. In other cases data are from tourism accommodation establishments. For some countries number of arrivals is limited to arrivals by air and for others to arrivals staying in hotels. Some countries include arrivals of nationals residing abroad while others do not. Caution should thus be used in comparing arrivals across countries. The data on inbound tourists refer to the number of arrivals, not to the number of people traveling. Thus a person who makes several trips to a country during a given period is counted each time as a new arrival." Per capita figures expressed per 1,000 population.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $1.12 billion 2013 156th out of 223
Budget surplus > + or deficit > - -1.3% of GDP 2011 1st out of 13
Exports $864.60 million 2011 156th out of 202
Exports per capita $23,203.89 2011 16th out of 201
Fiscal year calendar year 2013
GDP $6.07 billion 2011 145th out of 189
GDP > Composition by sector > Industry 4.9% 2012 215th out of 217
GDP > Composition, by sector of origin > Services 90% 2011 1st out of 7
GDP > Per capita $29,947.85 per capita 2006 23th out of 180
GDP > Per capita > PPP $70,600.00 2011 5th out of 195
GDP > Purchasing power parity per capita $28,406.41 2006 22nd out of 178
GDP per capita $163,025.86 2011 1st out of 189
Inflation rate > Consumer prices 1.5% 2010 166th out of 204
Tourist arrivals > Per capita 9,879.25 per 1,000 people 2008 1st out of 144
Unemployment rate 0.0 2011 116th out of 116

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; CIA World Factbooks 2010, 2011, 2012, 2013. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; All CIA World Factbooks 18 December 2003 to 18 December 2008; World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Tourism Organisation, Yearbook of Tourism Statistics, Compendium of Tourism Statistics and data files.

Citation

"Monaco Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Monaco/Economy

  • Monaco has had the highest GDP per capita since 1982.
  • Monaco has had the highest currency > GDP > constant 2000 US$ per capita since 1970.
  • Monaco has had the highest GDP per person since 1970.
  • Monaco ranked first for GDP > composition by sector > services amongst Christian countries in 2005.
  • Monaco ranked first for tourist arrivals > per capita amongst Europe in 2008.
  • Monaco has had the highest national accounts > atlas GNI and GNI per capita > GNI per capita > atlas method > current US$ since 1972.
  • Monaco ranked #6 for GDP > per capita > PPP globally in 2011.

6

The Principality of Monaco has limited land area to have capacity for new manufacturing firms. Nonetheless, there have been significant achievements during the “normalization process” in Monaco. It used to be in the list of the Organization for Economic Cooperation and Development’s non-cooperative tax shelters. Officials found it difficult to discard this perception despite efforts to gain the nod of principal international institutions. The new image of Monaco, which is quite notorious for lack of transparency, is still fogged up by its financial legislation. It is a refuge for people who do not pay income or inheritance taxes except for US and French nationals because of an accord signed 50 years ago signed by General de Gaulle and the United States.

The main resources of Monaco come from the VAT (sales tax), corporate and property transfer taxes as explained by State Minister Michel Roger. It is not in the listings of the OECD and the Financial Action Task Force anymore. However, it is still under scrutiny by the Tax Justice Network, a coalition of researchers and activists fighting the negative impact of tax avoidance and tax havens. Majority of companies come from the service sector with financial services owning the largest share. They represent 16 percent of the GDP even if the ratio has decreased over the years. 39 international banking institutions and 51 trust corporations manage about 100 million Euro currencies in deposits and investments. The industrial sector represents only 6.2 percent of the GDP.

Pressure is mounting on Monaco as world powers have launched a new war against tax evasion. Members of the G8 agreed to an automatic exchange of information for tax purposes during their recent meet in Northern Ireland. Monaco will be forced to follow more stringent policies.

Posted on 25 May 2014

jaacosta47

jaacosta47

423 Stat enthusiast