Presentation of Quarterly Economy Report for Q4 2022

©Direction de la Communication - Stéphane Danna

The Minister of Finance and Economy, Jean Castellini, and the Director of Monegasque Institute of Statistics and Economic Studies (IMSEE), Alexandre Bubbio, presented the Principality’s Quarterly Economic Report for the final quarter of 2022 (cumulative data since 1 January) to the press on Wednesday 15 March. 

The Report is also available on the IMSEE website: https://www.monacostatistics.mc/News/Quaterly-Economic-Report-Q4-2022

In his introductory remarks, Jean Castellini welcomed the State budget surplus for 2022: “The surplus totals EUR 32 million. We can be proud of this amount, which represents a return to the levels seen in 2018. In 2023, we are going to continue along this path, with the trends set to be positive, thanks to contributions from business and leisure tourism. Upgraded forecasts for occupancy rates and average prices in the hotel industry offer reassurance that business performance will be better than last year. Already, we are recording forecasts of room occupancy rates close to 65% for April and May.”

Alexandre Bubbio then offered a sector-by-sector analysis of the last Quarterly Report for 2022. Last year, the Principality’s total trade, excluding France, posted a substantial increase of 18.0% compared with 2021, reaching a value of €3.5 billion. However, this amount remains below that seen before the crisis (€3.7 billion in 2019). Excluding France, Italy remained Monaco’s leading trading partner in 2022, accounting for 22.6% of trade. It was followed by Germany (12.3% of trade) and the United Kingdom (10.0%).

Monaco’s revenue continues to grow, nearing €19 billion by the end of 2022, an increase of €2.5 billion. It rose 15%, following a 15.6% rise the previous year. Although a price effect unquestionably played a part, this growth shows that the economic recovery continues. All major economic sectors have now exceeded their pre-pandemic performance.

The three leading contributors to growth in Monaco’s revenue are:

• Wholesale trade (€670.6 million or +12.8%);
• Scientific and technical activities, administrative and support services (€442.3 million or +16.0%);
• Construction (€313.4 million or +14.5%).

The highest relative increase was observed in accommodation and food service activities (€288.4 million or +49.8%), confirming that it has bounced back compared with 2019.

With regard to employment, at the end of 2022 there were 60,082 active jobs (at least one hour worked, including domestic staff) in the private sector in Monaco. Salaried employment increased by 5.4% compared with the end of 2021, with an additional 3,083 jobs added. The volume of hours worked in the private sector exceeded a cumulative total of 97.5 million in 2022. This was 8 million more hours than in 2021, an increase of 8.8% over the period, or the equivalent of one additional month of hours worked. Despite a workforce of more than 8,000 people and growth of nearly 10%, at the end of 2022 there were still 300 fewer jobs in accommodation and food service activities than at the end of 2019.

The property market grew compared with 2020. Following a two-year dip, the property market rose sharply in 2022. The number of transactions increased by 18.2% to 520, which was still below the level of 2014–2016 (566). The value of transactions jumped 51.8%, reaching an unprecedented level of €3.54 billion. This growth was primarily due to the market for new properties, which quadrupled in terms of the number of transactions and quintupled in value, with 88 apartments sold for €1.19 billion, thanks to numerous deliveries of apartments and projects underway. The resale market also increased, although more moderately, with 432 transactions (+3.6%) and a value of €2.32 billion (+12.1%).