Monaco’s economy grew by 8.8% in real terms in 2024, setting a new GDP record of €10.28 billion, the highest ever recorded in the Principality. The figures, published this month by Monaco’s official statistics body IMSEE, reflect a fourth consecutive year of expansion following the Covid-19 crisis and mark what the institute describes as a “particularly dynamic year” across most sectors of the economy.

Adjusted for inflation, GDP grew at a faster rate in 2024 than in the previous year (+5.4%), and outpaced many European and global benchmarks. Since 2015, Monaco’s GDP has risen by nearly 53% in real terms — almost double the global growth rate (+28%), and significantly above that of the eurozone (+13%) and France (+11%).

Core sectors contribute over half of total GDP

Three sectors accounted for more than half of Monaco’s economic output in 2024: scientific and technical services (including administrative support), financial and insurance activities, and wholesale trade.

• Scientific and technical services remained the largest contributor to GDP, generating more than €3 billion in output and growing by 10.2% year-on-year.

• Financial and insurance activities increased by 11.9%, contributing an additional €197 million compared to 2023.

• Wholesale trade grew by 9.4%, adding €183 million in value.

Accommodation and food services recorded the fastest growth rate at 22.2%, driven in part by continued recovery in the hospitality and events sectors. However, IMSEE notes that this sector represents just 2.8% of overall GDP.

Employment and productivity reach new highs

Job creation continued to rise in 2024, with more than 60,700 positions recorded in the private sector — an increase of 3.6% compared to the previous year. This marks an all-time employment high for the Principality.

Productivity indicators also increased. GDP per employee reached €152,277, while GDP per capita surpassed the €100,000 mark, standing at €100,358. IMSEE attributes these gains to growth in high-value service sectors.

Tax receipts and domestic activity strengthen

Monaco’s VAT revenue rose by 12.2% in 2024, exceeding €2.3 billion and reinforcing its position as the main source of state income. The increase is in line with higher consumption and overall business activity, according to the report.

The domestic economy generated the majority of growth, with value added by Monaco-based companies rising by over €760 million. Imports of goods and services grew by 7.7%, while exports increased by 6.9%.

Environmental efficiency improves, but emissions rise

The report notes a reduction in carbon intensity despite an absolute increase in greenhouse gas emissions. Monaco’s CO₂ equivalent emissions totalled 102,000 tonnes in 2024 — an increase of 3.4% — but emissions per €1 million of GDP declined by 5.1%. This continued a longer-term trend of improving environmental efficiency.

IMSEE highlights that 2024 marks the fourth consecutive year in which carbon intensity has decreased, although the Principality’s total emissions remain closely tied to infrastructure projects and activity in construction-related sectors.

Structural observations from IMSEE

While the 2024 figures confirm a strong expansion, IMSEE also flags structural features in the economy worth monitoring. The report points to an increasing concentration of GDP within a limited number of sectors and a continued reliance on VAT as the principal fiscal lever.

Additionally, the statistical body notes that only six of Monaco’s 12 major sectors recorded growth across GDP, employment and hours worked — a sign that, while overall performance remains strong, not all parts of the economy are expanding at the same pace.

Stay updated with Monaco Life: sign up for our free newsletter, catch our podcast on Spotify, and follow us across Facebook,  Instagram, LinkedIn, and Tik Tok.

Photo credit: Cassandra Tanti