Monaco’s economy saw a mixed performance in the first half of the year, with turnover down by 7.4 percent, while employment continued to grow, particularly in the accommodation and catering sectors. According to the latest quarterly report from Monaco’s Institute of Statistics and Economic Studies (IMSEE), the number of jobs in these sectors surpassed 10,000, and hotel activity showed positive growth across all indicators.

Despite the decline in turnover, the drop was smaller than the 10.3 percent decrease recorded in the first quarter, though it still amounted to a reduction of over 750 million euros, bringing total turnover to 9.4 billion euros. Key sectors contributing to this decline include wholesale trade, scientific and technical activities, administrative services, and real estate. Wholesale trade alone saw a 415 million euros drop, while scientific and technical services fell by 235 million euros, largely due to weaker performance in construction-related fields after an exceptional year in 2023. Real estate transactions also saw a decline of 135 million euros, driven by a 120 million euro reduction in property sales by dealers. In contrast, service activities like sports clubs experienced a 50 million euro increase.

Tourism and Hospitality on the Rise

Monaco’s tourism sector remained a bright spot, with all hotel-related metrics improving, including arrivals, average length of stay, and overnight stays. Notably, 41.4 percent of tourists were from outside the European Union, with Americans and British visitors making up half of this group. However, the number of cruise passengers dropped by nearly a third, while helicopter traffic saw an increase in both movements and passengers.

Employment Growth Amid Economic Challenges

Employment in the private sector rose by 3.6 percent by the end of June, reaching 65,729 jobs. Most sectors contributed to this growth, except for industry and information/communication. The accommodation and catering sector saw the strongest growth at 6.4 percent, now representing 15.8 percent of total jobs, while the construction sector accounted for 10.6 percent. Temporary employment also surged by 9.5 percent, making up 12.9 percent of the total workforce.

Widening Trade Deficit

Monaco’s foreign trade outside France grew by nearly 12 percent, reaching 2.1 billion euros, primarily due to rising imports. This growth, however, widened the trade deficit to 891 million euros, compared to 679 million euros previously. Monaco’s main suppliers are Italy, the United Kingdom, and Germany, while its primary customers include Italy, Germany, and Spain. Notably, the number of new vehicle registrations fell by 5 percent in the first half, though the share of eco-friendly vehicles rose from 37.8 percent to 40.5 percent.

Real Estate Market Remains Strong

In the real estate market, resales dropped from 206 to 174 transactions, but the total value remained high at 1.1 billion euros, marking the third-highest figure for a half-year period. Sales of new properties totalled 323 million euros, although the number of new properties sold decreased from 19 to 7.

Financial Sector Sees Significant Growth

Monaco’s financial and insurance sectors also posted strong growth, with turnover rising from 2.051 billion euros to 2.645 billion euros, a 28.9 euros increase. Additionally, the total assets under management by banks grew by 11.5 euros, despite a 2 billion euro disinvestment in the second quarter of 2024.