IMSEE publishes 2018 GDP Report

DR

The Monegasque Institute of Statistics and Economic Studies (IMSEE) recently published the 2018 GDP Report.

Following a slowdown in the pace of Monegasque growth (from +9.6% in 2013 to +3.5% in 2016 and -3.4% in 2017), the Principality’s GDP experienced an upswing in 2018.

Monaco’s GDP exceeded €6 billion for the first time in 2018, rising to €6.09 billion from €5.69 billion in 2017. It rose by 6.1% in real terms, corrected for inflation (see Table 1).

All components of GDP experienced growth in 2018. Having contracted by 9.0% in 2017, gross operating surplus saw the most significant increase, at 11.0% (see Table 2).

Employment continued to increase in 2018, across both the public and private sectors (2,000 additional jobs (+3.7%) were added in December). Total wages paid out rose by 2.7%, accounting for nearly half of GDP (46.6%) excluding subsidies. This corresponds to the share of annually created wealth which is redistributed in the form of salaries and social security contributions. 

Taxes paid on products saw a reasonably strong increase in both nominal terms (+8.7%) and real terms (+7.8%), contributing 12.7% of wealth produced. This increase was primarily due to VAT growth as well as a rise in VAT on property and in transfer duties.

The amount of subsidies continues to grow (+1.7%), though at a weaker rate than in 2017 (+16.1%, due primarily to the creation of the Dependency Fund and money allocated to the energy transition).

As every year, economic performance by sector highlighted significant differences depending on the activity (see Table 3). Eight of the twelve Major Activity Sectors which make up the Monegasque economy saw an increase in their GDP, but overall growth was largely driven by two sectors: Scientific and technical activities, administrative and support services, and Wholesale trade.

The three most important economic sectors in the Principality in terms of GDP are Scientific and technical activities, administrative and support services; Financial and insurance activities; and Real estate activities. Together, these account for almost half (43.9%) of the wealth produced.

GDP per capita was €70,881, up 3.5% in real terms (see Table 4). GDP per employee, an indicator of productivity, also increased by 2.3% to €108,112 (see Table 5).

pib 2018 (47.59 kB)