Monaco » Introduction

Basic Economic Facts

GDP composition by Sector

One of Monaco's main sources of income is tourism; each year many are attracted to its casinos and pleasant climate. In 2001, a major new construction project extended the pier used by cruise ships in the main harbour. The principality has successfully sought to diversify into services and small, high-value-added, non-polluting industries such as cosmetics and bio-thermics.

As befits a world leader in glamour and money, Monaco is one of the most expensive places on Earth. The principality is often regarded as a tax haven, and most of its inhabitants are millionaires from other countries. The glamour and prestige associated with Monaco and its style-conscious people can be seen in the number of high class cars, designer fashion boutiques such as Chanel, trendy restaurants, and its royal family, especially since the marriage of Prince Rainier to Grace Kelly, later HSH Princess Grace of Monaco. The state has no income tax for individuals.

The state retains monopolies in numerous sectors, including tobacco and the postal service. The telephone network used to be owned by the state; now, Monaco Telecom is 49% owned by Cable and Wireless, 45% by the state and 6% by Compagnie Monégasque de Banque, but it is still a monopoly. Living standards are high, roughly comparable to those in prosperous French metropolitan areas.