Monaco
Current situation
Monaco nears an exit from the FATF grey list while staying outside the EU association track
Prepared by Valyzer's AI analyst team · sources cited
Monaco, placed on the FATF grey list in June 2024, was judged in June 2026 to have substantially completed its action plan; reports expect delisting at the FATF plenary ending 30 October, though no decision has been made. Unlike Andorra and San Marino, Monaco suspended EU association negotiations in 2023. Its economy has grown fast: official statistics show GDP above €10bn in 2024, with real growth of 8.8%.
- Tailwind
Grey-list exit expected in October
According to reporting cited by Sumsub, the FATF is expected to remove Monaco at its Paris plenary ending 30 October. Cited reforms include tougher anti-money-laundering sanctions, more resources for the financial intelligence unit and more seizures of suspected criminal assets. No decision has been made, and removal needs members' agreement.
- Watch
Outside the EU association track
Monaco took part in the association talks launched in 2015 but agreed with the Commission in September 2023 to suspend them. Andorra and San Marino continued, and the EU Council cleared their agreements for signature in July 2026, leaving Monaco's single-market access unchanged.
- Tailwind
GDP passes €10 billion
Monaco's statistics institute IMSEE put 2024 GDP at about €10.28bn, the first time above €10bn, with real growth of 8.8% after 5.4% in 2023. Scientific and technical services were the largest contributor, and financial and insurance activities grew 11.9%. Data for 2025 are still being compiled.
Sources (4)
Regional context
Europe faces a second energy shock, sticky inflation and weak growth while competitiveness reforms advance slowly
- Headwind
Energy shock revives inflation and rate hikes
The Commission's Spring 2026 forecast cut EU growth to 1.1% for 2026 and raised inflation to 3.1%, citing the Middle East conflict. The ECB hiked twice in 2026, taking the deposit rate to 2.50% on 10 September; its staff project 3.0% headline inflation this year. The IMF warns gas stocks in parts of Europe are below seasonal norms.
- Headwind
Regulation and the productivity gap with the US
According to the Draghi report (September 2024), around 70% of the EU-US gap in per-capita GDP at PPP is explained by lower EU productivity, and more than 60% of EU companies see regulation as an obstacle to investment. It counts about 100 tech-focused EU laws and estimates extra investment needs of €750-800bn a year.
- Watch
Simplification agenda: delivery still being tested
The Commission says 90% of its Competitiveness Compass flagships draw on Draghi and reported €8.4bn in simplification savings (self-reported, September 2025). In May 2026 the Council and Parliament provisionally agreed to delay AI Act high-risk obligations to December 2027 and August 2028. Measurable effects on investment and innovation are not yet visible in the data.
Monaco vs Europe vs the world
| Indicator | Country | Europe median | World median | Vs Europe |
|---|---|---|---|---|
| GDP growth · 2024 | 8.5 % | 2 % | 3.4 % | Better than Europe |
| GDP per capita · 2024 | 288,002 USD | 34,301 USD | 7,951 USD | Better than Europe |
| R&D spending (share of GDP) · 2005 | 0 % | 0.9 % | 0.5 % | Worse than Europe |
| Regulatory quality (World Bank index) · 2025 | 1.56 | 0.85 | -0.09 | Better than Europe |
| Government effectiveness (World Bank index) · 2025 | 1.72 | 1.06 | 0.09 | Better than Europe |
| Energy import dependency | no data | no data | no data | No data |
| Trade openness (share of GDP) | no data | no data | no data | No data |
| Exports to China (share of total) | no data | no data | no data | No data |
| Renewables in electricity | no data | no data | no data | No data |
| Liberal democracy index (V-Dem) | no data | no data | no data | No data |
Medians use the countries that publish the figure that year.
Structural context
Monaco is a sovereign European city-state and principality with a semi-constitutional monarchy and a historical economy linked to its casino development.
- Politics
- The source describes a monarchy in which the prince holds substantial political powers.
- Economy
- The collected introduction does not establish current economic conditions.
- Security
- Current security conditions are not established; missing evidence does not imply safety or absence of conflict.
- Foreign relations
- The collected introduction does not establish current diplomatic positions or disputes.
Structural context adapted from Wikipedia, CC BY-SA 4.0. Reviewed by Valyzer. source
Key numbers
Conflictno data (insufficient coverage)
Macro stress9
External dependencyno data (insufficient coverage)
Government
- Head of state
- not ingested
- Head of government
- not ingested
Recent events
No published events for this country yet.