The crisis brought about by Covid-19 cost the Principality €900 million in profits for the first half of the year, the latest report from IMSEE has revealed.
The Monegasque Institute for Statistics and Economic Studies (IMSEE) unveiled the Principality’s Economic Bulletin to the press on Monday 21^st September.
Alongside Government Ministers Didier Gamerdinger and Jean Castellini, Director of IMSEE Sophie Vincent discussed the exceptional nature of the April-May-June 2020 period.
According to Ms Vincent, in the first half of the year, the Principality’s turnover plunged 13% compared to the same period in 2019, losing more than €900 million.
“Only two sectors resisted the trend: Construction and Scientific and Technical Activities, and Administrative and Support services. On the other hand, the hotel and catering industry lost 60% of its turnover and there was also a very clear decline in wholesale trade, but also in retail trade,” she revealed, adding, “foreign trade fell back to the level of 2016-2017, recording -51% for purchases and -37% for sales.”
At the end of June 2020, there were 8,000 fewer jobs compared to June 2019 (- 13.8%) in the private sector, despite rebounds of +13% between May and June once confinement was lifted. The hotel and catering industry alone saw a jump of 74%.
Meanwhile, due to business support measures, the number of business closures was lower than in 2019, with 208 against 268.
Regarding employment, Minister of Social Affairs and Health Didier Gamerdinger said the aid benefits implemented by the government, such as the CTTR, “erected a protective shield for companies and their employees.”
However, he announced that five new social claims were underway in the Principality, in addition to the existing 20, concerning around 30 employees in the yachting sector.
He also confirmed that the State and its social partners were currently working on the concept of labor flexibility to further stem the effects of the crisis to come.