Monaco’s GDP fell by a significant 11.8% last year as Covid took its grip on the Principality, according to a new report by statistics group IMSEE.
Monaco’s gross domestic product (GDP) saw a backslide in 2020 after two years of strong growth in 2018 and 2019. GDP rose by +6% and +6.9% in each of those years respectively. But in 2020, the GDP came to €5.97 billion, compared to €6.6 billion in 2019. This amounts to a -11.8% drop adjusted for inflation.
According to the latest report by IMSEE, since the year 2011, this is only the second time the total number of employees, both public and private, has fallen. The regression amounted to -3.4% in 2020, whilst the other time was a tiny -0.5% back in 2015.
The wage bill fell by 5.5% last year as well. However, over the decade, employee compensation increased by an average of +2.7% per year. This represents nearly half, 44.3% to be exact, of the wealth created in the Principality, excluding subsidies.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a dramatic drop by -7.0%. In spite of this fall, its annual growth rate is +4.9% over the decade as a whole. EDITDA represents 41.7% of GDP excluding subsidies.
Taxes increased quite sharply by +8%. They contribute 14.0% to the wealth produced in Monaco. It is mainly higher VAT, notably real estate VAT, that explains this increase.
GDP per employee was down -8.7% in volume to €106,719.
Subsidies stemming from the government’s support policies have had a +100.4% leap, doubling over the previous year.
The per capita GDP in the Principality is a substantial €69,380. Although this is a -10.4% fall in volume, it is far above the mean personal per capita in Europe which is €37,468. Only Luxembourg, Ireland and Norway have higher.
Three sectors are responsible for 50.1% of Monaco’s wealth. They are scientific and technical activities, administrative and support services which make up 20.3%; financial and insurance activities making up 18.3%; and construction, coming in at 11.4%, which stays on the podium since real estate activities were weaker than normal.
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