MONACO ECONOMIC OUTLINE A Unique Economic Model > Tuesday, May 14th 2019 MONEGASQUES’ SINGULARITIES 2 KM2 > 37 308 Second smallest INHABITANTS country +5% 1297 POLITICAL STABILITY 139 > 8 378 NATIONALITIES CITIZENSHIPS 22% MONEGASQUES’ SINGULARITIES MONACO ECONOMIC MODEL ENGAGEMENT 1 International strategic partnerships 2 Develop expertise / Maintain Diversity / Liberal Approach to Business 3 Sustainable development the economy’s core ENVIRONNEMENT ECONOMIC GOWTHMODELECONOMIC Carbon Neutrality 0% by 2050 PILAR # 1: INTERNATIONAL STRATEGIG PARTNERSHIPS INTERNATIONAL TRADE 2 988 M € 52% GDP INT. REPRESENTATION GLOBAL PRESENCE ONU / € / OECD > 130 Intergovernmental agreements > 120 diplomatic relations A sovereignty linked to the world A strategic location with great commercial potential European Union 510 million consumers Mediterranean Basin 272 million consumers Africa Monaco st 1 commercial partner apart from Europe FOREIGN TRADE: 2000 EXPORTS 1500 1436,3 EXPORTATIONS 1355,5 • 73,7% Europe 1208,2 • 13,5% Africa 921,5 • 7,3% Asia 1000 872,2 842,2 866,2 753,2 • 4% America IMPORTATIONS • 1,6% Near & Far 500 East 119 IMPORTS 0 TRADE BALANCE 2014 2015 2016 2017 • 80% Europe • 9,4% Asia -366 • -500 -434 6,6% America -570,1 • 3,4% Africa • 0.5% Near &Far East -1000 Foreign trade- balance of trade in M € - Period 2014-2017 Sources: IMSEE – edition 2018 / Directorate-General of Customs and Indirect Taxes (France) PILAR # 2: COMPARATIVE ADVANTAGE • Rising knowhow in niche markets • Fostering diversification • Maintaining Balance INNOVATION Sectors of the Monegasque economy (as % of GDP) A diversified and balanced model within a liberal environment ECONOMIC DEVELOPMENT TOWARD INNOVATION IT +12% and still the best to come… STARTUP PROGRAM SMART PRINICPALITY INNOVATION AND DIGITAL TRANSFORMATION • Promote innovation, • Promote quality of life, • Create jobs and catalyze economic growth, • Deliver a new cycle of economic prosperity, • Strengthen local competitiveness. • Boost the value of public service. https://monacotech.mc/en/ http://extendedmonaco.com/.EN/#page=1 Pilar # 3: Sustainable development the economy’s core Energy transition 50% emissions by 2030 Carbon neutrality by 2050 A sustainable and Responsible Model - A benevolent approach A single political governance, a healthy financial situation A stable, sustainable and debt free economy SUSTAINABLE REVENUES: CAGR : +4% National budget evolution in M € 1 251,20 1 225,60 1 111,40 1 173,00 945,10 900,10 A DEBT FREE + 36,6 809,30 + 35,9 ECONOMY + 29,10 + 25,7 BUDGET SURPLUS + 12,0 2014 > +0,48% / GDP + 3,7 2015 > +0,51% / GDP 2016> +0,61% / GDP 5.2 B € 2011 2012 2013 2014 2015 2016 2017 RESERVE FOUND Deficit or Surplus Revenues > 4 YEARS of TAX REVENUE Total expenditures Linéaire (Deficit or Surplus) Sources: IMSEE edition 2018 A clear vision of the future Structural Projects aimed to ensure development and enhance attractiveness: 2017 Refit of the famed hotel de Paris… and the 7 wonders of ONE MONTE-CARLO a new district offering the very best for a complete and totally exclusive experience: fashion, art and culture, and luxury real estate. Département des Afaires Sociales et de la Santé Concession acquisition of Ventimiglia Marina Port. A, full-service facility will offer 178 berths for yachts and will include a SANTE : une priorité monégasque Health: a priority for Monaco shipyard facility, 35 stores, a parking area for nearly 600 vehicles, and 15,000sq m of promenades and gardens. Construction of an entirely new Hospital. The new 103,000 square meter Princess Grace Hospital in Monaco will include state-of the-art technical suites, operating theatres and 470 beds. Monaco Offshore extansion on the sea. @GvtMonaco www.gouv.mc A €2 billion project to extend the natural contour of Monaco's coastline into the Mediterranean: eco-distric > 60,000 m² of space 2025 © Principauté de Monaco. Sustainable and dynamic economic development Real GDP evolution in relative terms Ranking-GDP per capita 5,85 B€ CAGR # 1 Qatar +4% $ 128 000 # 2 Macau # 3 $ 115 000 LuX. # 4 # 5 $ 107 000 Singapore Monaco $ 94 000 3,66 B€ $ 79 000 +3% Current International $ Period 2006-2016 Sources: OECD 2017 / World Bank 2018 Sustainable and dynamic economic development EMPLOYMENT ACTIVE ENTITIES INNOVATION a rising pool of skilled people A progressive trend At the centre of the process > 54 000 JOBS > 5 400 COMPANIES The most dynamic source of employment in Southern Europe > 10 000 5 987 REGISTERED Private Sector Only 5 656 5 403 PATENTS 49 693 5 143 4 785 +7% 2017 > 5 000 +5% +5% +5% BRANDS 45 441 60 Average Evol./ year +2% FIELDED MODELS & DESIGNS 2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Unemployment rate 2% > 1 200 entities over > An average of 500 created job/ year the past 5 years MONACO: a diversified economy, a land of entrepreneurs. “A high calibre business environment” Monaco, an Exceptional Place by Exceptional People THE MONACAN DELEGATION .