Monaco - Services

The service sector has undergone spectacular growth in recent decades. It produced 49.1 percent of the total revenue of the country in 1993 and included banking, insurance, consulting agencies (technical, commercial, and financial), auxiliary services, and commercial middlemen. Banking and financial activities and business services, including those associated with the establishment of head offices and offices of non-financial companies of international size, are growing in importance in Monaco. The retail sector includes small, privately held stores, luxury boutiques, and international retail chains. Retail contributed approximately 21 percent to the principality's total revenue in 1993. The banking and retail sectors are closely integrated with the French economy through the monetary union between the 2 countries and the local branches of large French and international banks, insurance firms, and stock markets. Despite the increased competition resulting from the liberalization of financial services in the EU, the introduction of the single currency, and the revolution in information technology, the economic relationship between France and Monaco remains strong. Real estate activity plays a very important role in the economy, justifying the principality's extensive research and decision-making process in the field of city planning.