Economy of Monaco

Monaco, a small country nestled between Alps mountainside and Mediterranean Sea ,is a major tourist destination. The geographical location, the massive influx of tourists and no burden of income tax are the factors behind shaping up Monaco economy. The strong economy of Monaco prompts its people to maintain a high standard of living.

From the late 19th century Monaco economy began to develop tremendously with the opening of casinos. The magnificent charm of casinos, hotel industry and the beauty of natural surroundings all these have made tourism to develop very strongly here which is a major source of revenue generating trade for Monaco. Apart from this the complete lack of income tax has prompted many companies of foreign countries to invest here and enjoy the benefits.

The mushrooming of foreign companies has provided jobs for everybody so the rate of unemployment is 0% in Monaco. However Monaco does not publish its economic figures so the rough estimation of this data can be given as follows:

• GDP(Purchasing Power Parity): $976.3 million
• GDP(Per Capita): $30,000
• Inflation Rate: 1.9%
• Revenues: $863 million
• Exports: $716.3 million
• Imports: $916.1 million

There is almost nil commercial agriculture in Monaco. Monaco is well known for its marine activities, which of course contribute to its economy. Another major activity that generates revenue for Monaco is real estate as the prices for property are sky high in Monaco and being a hub of glamour it attracts celebrities as buyers. In a nutshell a tiny country like Monaco has developed quite a strong economic backbone without having any kind of natural resources.