According to commit4fitness, Monaco is a small sovereign city-state located in Western Europe on the Mediterranean Sea. With a population of over 38,000 people, Monaco is one of the smallest countries in the world. Its economy is largely based on tourism, banking and finance, and light manufacturing. Tourism is the largest contributor to Monaco’s GDP with over 6 million visitors per year. Banking and finance are also important sectors in Monaco’s economy with many international banks based in the country. Light manufacturing such as textiles, electronics, and pharmaceuticals are produced here as well. The government has made efforts to improve its infrastructure including roads and ports which will help to increase economic activity in the country. In addition, Monaco is actively seeking foreign investment to help spur economic growth and development. The country also offers tax incentives for investors looking to establish businesses in the region.
According to countryaah, Monaco’s economy is not comparable to any other country in Europe. In a country without income and wealth tax (French and American citizens living in Monaco have to pay taxes in their home countries) and with a large proportion of income from abroad it is difficult to make a fair estimate of national income.
Tourism is the traditional main industry. The service industries account for 84 percent of employment and the industry 16 percent. The industry consists of companies mainly in the chemical, fine mechanics and plastics industries. Monaco is also an important banking and financial center with about 40 banks.
- According to abbreviationfinder, MC is the 2 letter abbreviation for the country of Monaco.
The state has a strictly balanced budget. Its revenue is covered by just over half of VAT and at 4 percent of gambling. The rest comes mainly from corporate taxation (about 1/3), state monopoly on eg. tobacco, telephone and stamps, concessions for the casino and Radio Monte Carlo and customs. The state is the principal owner of SBM (Société des Bains de Mers et du Cercle des Étrangers à Monaco), which is Monaco’s largest company with 2,600 employees and which, in addition to the casino, runs hotels, restaurants, opera etc. SBM is also behind many events, such as Monte Carlo Rally and Monaco Grand Prix.
About 2/3 of foreign trade is done with France. Exports mainly consist of cosmetics, pharmaceuticals, electronics, plastics and anchovy preservatives. The trade deficit is significant, which is probably offset by the currency inflow of tourists and residents.