Main driving force behind the Monaco economy is a high degree of diversification

Caspian Energy (CE): Your Excellency, the Principality of Monaco is a small country with the highest population density in the world. It offers a comfortable standard of living and can boast one of the highest GDPs on the planet. In today’s crisis-hit world, this is a unique combination. What is the secret of Monaco’s uniqueness and its ability to withstand the crisis?

Michel Roger, Minister of State of the Principality of Monaco: Monaco has some very unique strengths. With a territory of just two square kilometres, it is the smallest member of the United Nations (since 1993) and the smallest country in the world after the Vatican.

These two square kilometres are home to 37,000 residents, representing more than 129 nationalities and including 8,600 Monegasque nationals. This is another distinctive feature of Monaco: it is one of very few countries where nationals are in the minority. Every day, 38,000 people come from France or Italy to work in Monaco, where there are more jobs than residents – another unique aspect of the country. There are 47,700 private-sector jobs in the Principality, 6,300 public-sector jobs and 5,000 companies. Net job creation amounts to around 1,000 jobs per year.

Focusing on the economy, in 2012 Monaco’s GDP was €4.48 billion. GDP growth stalled in 2009 before resuming in 2010, along with tax receipts, thanks to an increase in consumption and a rise in business activity and the property market.

This upturn has gone hand in hand with a balanced budget, well-managed public expenditure and no debt, placing Monaco in a favourable position despite the difficulties in the international economy.

The roadmap which Prince Albert II set out for his government in July 2010 focused on two key ideas which are still relevant today: achieving sustainable growth and modernising both the country and the government. Attracting investors and residents is essential. Restoring a balanced budget was not a simple task, but it was accomplished in 2012 and has been maintained since. The 2015 budget showed a surplus for the first time in 21 years. This could be an objective to pursue for the coming years!