Economy of San Marino
Currency | Euro (EUR, €) |
---|---|
Trade organisations | EU Customs Union |
Country group | |
Statistics | |
Population | 34,735 (1 January 2020)[3] |
GDP | |
GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank |
|
GDP by sector |
(2017)[6] |
1.95% (2020 est.)[4] | |
Labour force | 23,963 (2019)[8] |
Labour force by occupation |
|
Unemployment | 7.66% (2019)[8] |
External | |
Exports | €1,638.7 million (2018 est.) |
Main export partners | Italy, France, Germany |
Imports | €1,496.3 million (2018 est.) |
Main import partners | Italy, China, Germany |
−€22.2 million (2018) [9] | |
Public finances | |
| |
Revenues | 23% of GDP (2018) |
Expenses | 24.5% of GDP (2018) |
| |
The economy of San Marino is a developed free-market economy focused on industries such as tourism, banking, and the manufacture of ceramics, clothing, fabrics, furniture, paints, spirits, tiles, and wine. Taken together, the manufacturing and financial sector make up more than half of the national GDP. The primary sector contribution to the GDP of the country is marginal, with the main agricultural products being wine and cheeses. In addition, San Marino sells collectible postage stamps to philatelists.[11]
Overview
San Marino's per-capita GDP stands at almost $53,000 in 2023, placing the country 17th in the world.[4] Overall, the per capita level of output and standard of living is comparable to the richest regions of Italy. Most of the food, water, and other raw resources are imported from Italy, including also the totality of electricity and natural gas. Taxes, especially on labor and capital income, are generally much lower than in Italy, therefore, there are extremely strict requirements to obtain citizenship.[11]
Following the
The country is shifting away from an economic model typical of tax havens, reliant on banks and tax secrecy.[11] Major steps in this direction were taken in 2010 with the abolition of anonymous companies and in 2017 with the abolition of banking secrecy. Currently, San Marino actively cooperates with international organizations, especially the Council of Europe and the European Union, for what regards fighting against money laundering and terrorism financing. As a result, San Marino was removed from the Italian blacklist of tax havens in 2014, and from that of Ecofin in 2017. [14][15]
Public finances
In the years preceding the great recession, San Marino's public finances were in very good shape, with a central government budget surplus and no national debt. During the global downturn, the government adopted measures to dampen the shock on the real economy and to bail out financial institutions, which came at a high price for the soundness of public finances. The official estimates place government debt at 32% of GDP in 2020, however, the actual value is equal to 86% according to the International Monetary Fund, which takes a broader view in considering government's liabilities.[12]
While San Marino does not issue public debt securities that are traded on financial markets, its creditworthiness is monitored by the rating agency Fitch.[11] The current rating of BB+ is the result of several downgrades that occurred during and after the great recession: from AA to A in 2009 and to BBB in 2016.
Economic relations with Italy and the EU
In the years following the
While San Marino is not part of the
The main commercial partner of San Marino is Italy, with which around 88% of exports and 78% of imports take place (2017). Other important partners are the other countries of the EU, especially France and Germany.
Companies
In 2022, the sector with the highest number of companies registered in San Marino is Retail Trade with 756 companies followed by Wholesale Trade and Services with 753 and 752 companies respectively.[16]
Coins and stamps
One of the sources of income from tourism comes from the sale of historic coins and stamps. In 1894, San Marino issued the first commemorative stamps and since then that has been part of a large livelihood in the republic. All 10 of the Post Offices of San Marino sell these stamps and collectible coins, including "Legal Gold Tender Coins".
Traditional economic activities in San Marino were food crops,
References
- ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
- ^ "Population on 1 January". ec.europa.eu/eurostat. Eurostat. Retrieved 13 July 2020.
- ^ a b c d e f "Report for Selected Countries and Subjects: April 2023". imf.org. International Monetary Fund.
- ^ a b c "The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID". International Monetary Fund. April 11, 2023.
- ^ a b "CIA World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 23 August 2020.
- ^ "Human Development Report 2021/2022" (PDF). United Nations Development Programme. 8 September 2022. Retrieved 27 September 2023.
- ^ a b "Statistical Office of San Marino". Retrieved 23 August 2020.
- ^ a b "IMF data mapper, April 2020". Retrieved 23 August 2020.
- ^ "Fitch Downgrades San Marino to 'BB+'; Outlook Negative". Retrieved 23 August 2020.
- ^ a b c d e "CIA Factbook San Marino". 4 April 2023.
- ^ a b "IMF 2020 Article IV consultation".
- ^ "BCSM financial-system-and-banking-statistics".
- ^ Anonymous (2016-09-15). "Common EU list of third country jurisdictions for tax purposes". Taxation and Customs Union - European Commission. Retrieved 2020-08-25.
- ^ "Italy Takes San Marino Off Blacklist". www.tax-news.com. Archived from the original on 2021-12-01. Retrieved 2020-08-25.
- ^ "Industry Breakdown of Companies in San Marino". HitHorizons.