Monaco’s economy: sustainable success tied to local circumstances

Concentrated within an area of barely more than two square kilometres, Monaco’s economy is distinguished by its varied and dynamic nature.

While tourism, gambling, financial services and real estate are among the main traditional sectors in the Principality of Monaco, other areas are also thriving: the high-tech industry, luxury products, science and technology and the pharmaceutical industry.

This variety and the exceptional quality of Monegasque businesses give the Principality a dynamism which is rare, and this is illustrated by the state budget surplus and the fact that Monaco is one of the few countries in the world to have no public debt.

Another key contributor to Monaco’s dynamic economy is the fact that since 1869, Monegasque nationals and residents (with the exception of French nationals) have not been subject to income tax. The State draws most of its revenue from collecting VAT.