Monaco: Country and Foreign Investment
Economy and Currency
This page was last updated on 15 May 2020.
Monaco's GDP was $US7.19 billion when it was last assessed in 2018. The euro is the official currency as the Principality is in full monetary union with France. The French franc ceased to be legal tender on February 17, 2002.
The Principality’s economic base includes casinos, financial services, capital-intensive, environmentally friendly light industries and tourism. Value added tax levied on services offered by hotels, banks and the commercial sector accounts for 55% of the government revenue with a further 25% coming from tourism and another 16% coming from state monopolies such as the tobacco industry, telecommunications and the post office.
Since 1950, government policy has been to encourage green industries with a high capital yield. This has led to the growth of companies involved in reprocessing, packaging, printing and the manufacture of cosmetics, pharmaceuticals and clothing in the Principality. Monaco is also famous for its laboratories. As land is in short supply, there are plenty of high-rise offices.
In recent years, financial services have shown the most spectacular growth, and even in 1993 were considered to account for about 50% of gross domestic product. Nonetheless the Government actively discourages the perception of Monaco as a tax haven with the result that Monaco could be said to have only limited offshore centre characteristics.
Monaco is in monetary union with France and its official currency is the euro.