Editing Economy of San Marino

{{Short description|none}}
{{Infobox economy
| country = San Marino
| image = Città di San Marino 2019.jpg
| image_size = 310px
| caption = 
| currency = [[Euro]] (EUR, €)
| fixed exchange = 
| year = 
| organs = [[European Union Customs Union|EU Customs Union]]
| group = {{plainlist|
*[[Developed country|Developed/Advanced]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
| population = {{increase}} 34,735 (1 January 2020)<ref>{{cite web |title=Population on 1 January |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00001&plugin=1 |website=ec.europa.eu/eurostat |publisher=[[Eurostat]] |access-date=13 July 2020}}</ref>
| gdp = {{plainlist|
*{{increase}} $2.840 billion (nominal, 2025)<ref name="IMFWEOSM">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=111,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: April 2024|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
*{{increase}} $2.978 billion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFWEOSM"/>}}
| gdp rank =  {{plainlist|  
* [[List of countries by GDP (nominal)|171st (nominal; 2024)]]
* [[List of countries by GDP (PPP)|176th (PPP; 2024)]]
}}
| growth = {{plainlist|   
* {{Increase}} 4.6%&nbsp;(2022)<ref name="IMF_forecast">{{cite web | url=https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023 | title=The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID|work=[[International Monetary Fund]]|date=April 11, 2023 }}</ref> 
* {{Increase}} 1.2%&nbsp;{{abbr|(2023f)|2023 forecast}}<ref name="IMF_forecast"/> 
* {{Increase}} 1.0%&nbsp;{{abbr|(2024f)|2024 forecast}}<ref name="IMF_forecast"/>
}}
| per capita = {{plainlist|
*{{increase}} $61,520 (nominal, 2025)<ref name="IMFWEOSM"/>
*{{Decrease}} $82,589 ([[Purchasing power parity|PPP]], 2025)<ref name="IMFWEOSM"/>}}
| per capita rank = {{plainlist|
* [[List of countries by GDP per capita (nominal)|12th (nominal; 2024)]]
* [[List of countries by GDP per capita (PPP)|7th (PPP; 2024)]]
}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 0.1%
*[[Secondary sector of the economy|industry]]: 39.2%
*[[Tertiary sector of the economy|services]]: 60.7%
(2017)<ref name="CIA World Factbook San Marino">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/san-marino/ |title=CIA World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=23 August 2020}}</ref>}}
| components = 
| inflation = 1.95% (2020 est.)<ref name="IMFWEOSM"/>
| bankrate = 
| poverty = 
| gini = 
| hdi = {{plainlist|
* {{increase}} 0.867 {{color|darkgreen|very high}} (2022)<ref name="HDI">{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=4 May 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|43rd]])}} 
| labor = 23,963 (2019)<ref name="STATSM">{{cite web |url=https://www.statistica.sm/  |title=Statistical Office of San Marino |access-date=23 August 2020}}</ref>
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 0.2%
*[[Secondary sector of the economy|industry]]: 33.5%
*[[Tertiary sector of the economy|services]]: 66.3% 
*(2013)<ref name="CIA World Factbook San Marino"/>}}
| unemployment = {{decreasePositive}} 7.66% (2019)<ref name="STATSM"/>
| average gross salary = 
| gross median = 
| average net salary = 
| net median = 
| industries = 
| edbr = {{steady}} [[Ease of doing business index#Ranking|92nd (Easy, 2020)]]<ref>{{cite web |url=https://www.doingbusiness.org/en/data/exploreeconomies/san-marino |title=Ease of Doing Business in San Marino|publisher=Doingbusiness.org |access-date=23 August 2020}}</ref>
| exports = €1,638.7 million (2018 est.)
| export-goods = 
| export-partners = Italy, France, Germany
| imports = €1,496.3 million (2018 est.)
| import-goods = 
| import-partners = Italy, China, Germany
| FDI = 
| current account = {{decrease}} −€22.2 million (2018) <ref name="IMFWEOSM20">{{cite web |url=https://www.imf.org/external/datamapper/profile/SMR |title=IMF data mapper, April 2020 |access-date=23 August 2020}}</ref>
| gross external debt = 
| NIIP = 
| debt = {{plainlist|
*{{increaseNegative}} 30.3% of GDP (2018, official) 
*{{increaseNegative}} 78.8% of GDP (2018, IMF) <ref name="IMFWEOSM20"/>}}
| balance = 
| revenue = {{increase}} 23% of GDP (2018)
| expenses = {{decreasePositive}} 24.5% of GDP (2018)
| aid = 
| credit = {{plainlist|
*[[Fitch Group|Fitch]]: BB+
*Outlook: Stable<ref name="RATING">{{cite web |title=Fitch Upgrades San Marino to 'BB+'; Outlook Stable |url=https://www.fitchratings.com/research/sovereigns/fitch-upgrades-san-marino-to-bb-outlook-stable-13-12-2024 |website=Fitch Ratings |access-date=9 March 2025}}</ref>}}
| reserves = 
| cianame = san-marino
| spelling = 
| usebelowbox = yes
| presentUS$asdefault = yes
}}

The '''economy of [[San Marino]]''' is a developed free-market economy focused on industries such as tourism, [[bank]]ing, 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 [[agriculture|agricultural product]]s being [[wine]] and [[cheese]]s. In addition, San Marino sells collectible [[postage stamp]]s to [[philately|philatelists]].<ref name=":0">{{Cite web|title=CIA Factbook San Marino|date=4 April 2023 |url=https://www.cia.gov/the-world-factbook/countries/san-marino/}}</ref>

== Overview ==
San Marino's per-capita GDP stands at almost $53,000 in 2023, placing the country 17th in the world.<ref name="IMFWEOSM"/> 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.<ref name=":0" />

Following the [[Great Recession|global recession]] of 2007–2008, San Marino's economy contracted considerably, especially in the finance and banking sector.<ref name=":0" /> As a result, [[Gross domestic product|GDP]] decreased by 40% between 2008 and 2019, and [[unemployment]], which was practically nonexistent until 2007, arose to around 5–8 % in the years following the great recession. During the same period, [[Bank deposits|banks' deposits]] plummeted, going from almost 14 billion euros in 2008 to 5.2 billion. An important liquidity crisis followed suit, also made worse by the absence of a [[lender of last resort]], as San Marino is not part of the [[European Union]]. As a consequence of these events, several banks  have been bailed-out by the government, including [[Cassa di Risparmio della Repubblica di San Marino|Cassa di Risparmio]], the main bank of the country. Still, the banking system remains weak, with balance sheets that are impaired by [[Non-performing loan|Non-Performing Loans]], which amount to 114% of the country's GDP.<ref name=":1">{{Cite web|title=IMF 2020 Article IV consultation|url=https://www.imf.org/en/Publications/CR/Issues/2020/04/01/Republic-of-San-Marino-2020-Article-IV-Consultation-Press-Release-and-Staff-Report-49297}}</ref><ref>{{Cite web|title=BCSM financial-system-and-banking-statistics|url=https://www.bcsm.sm/site/en/home/publications-and-statistics/financial-system-and-banking-statistics/articolo124.html}}</ref>

The country is shifting away from an economic model typical of tax havens, reliant on banks and tax secrecy.<ref name=":0" /> Major steps in this direction were taken in 2010 with the abolition of [[S.A. (corporation)|anonymous companies]] and in 2017 with the abolition of [[Bank secrecy|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 [[Economic and Financial Affairs Council|Ecofin]] in 2017.<ref>{{Cite web|last=Anonymous|date=2016-09-15|title=Common EU list of third country jurisdictions for tax purposes|url=https://ec.europa.eu/taxation_customs/tax-common-eu-list_en|access-date=2020-08-25|website=Taxation and Customs Union - European Commission|language=en}}</ref><ref>{{Cite web|title=Italy Takes San Marino Off Blacklist|url=https://www.tax-news.com/news/Italy_Takes_San_Marino_Off_Blacklist____63723.html|access-date=2020-08-25|website=www.tax-news.com|archive-date=2021-12-01|archive-url=https://web.archive.org/web/20211201122459/https://www.tax-news.com/news/Italy_Takes_San_Marino_Off_Blacklist____63723.html|url-status=usurped}}</ref>

== Public finances ==
In the years preceding the great recession, San Marino's public finances were in very good shape, with a central government [[Government budget|budget surplus]] and no [[government debt|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.<ref name=":1" />

While San Marino does not issue public debt securities that are traded on financial markets, its creditworthiness is monitored by the rating agency [[Fitch Ratings|Fitch]].<ref name=":0" /> 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 ==
{{unreferenced section|date=December 2023}}
{{Further|San Marino–European Union relations}}
In the years following the [[Italian unification]] of 1861, several treaties were signed between San Marino and the newborn [[Kingdom of Italy]]. The first such treaty addressing economic issues was signed in 1865 for the introduction of the [[Sammarinese lira]], which was equivalent to the Italian lira and fully recognized as a legal tender in both countries. Probably the most important agreement is the convention of friendship and good neighborhood that was signed in 1939, during fascism. This treaty establishes a customs union with Italy and sets out some limitations on the carrying out of certain economic activities, like tobacco cultivation, gambling, and radio broadcasting.

While San Marino is not part of the [[European Union]], it had a customs union with it since 1991, and there is an open border between the two areas. San Marino also uses the [[Euro]] as its currency since 2000, when an agreement was signed with Italy, on behalf of the EU. A new monetary convention was signed in 2012 directly with the EU, covering a wider range of financial and monetary issues. San Marino is also allowed to mint [[Sammarinese euro coins|Sammarinese Euro coins]], which are printed by the Italian mint in Rome but feature a different national design than [[Italian euro coins|Italian Euro coins]]. Since they are minted in a very limited amount, they are rare and highly appreciated by coin collectors.

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.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/san%20marino | title=Industry Breakdown of Companies in San Marino | website=HitHorizons}}</ref>

==Coins and stamps==
One of the sources of income from tourism comes from the sale of historic coins and [[Postage stamps and postal history of San Marino|stamps]].  In 1894, San Marino issued the first [[commemorative stamp]]s and since then that has been part of a large livelihood in the republic. All 10 of the [[Post office|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, [[sheep husbandry|sheep farming]], and [[quarry|stone quarrying]]. Today farming activities focus on [[grain]], [[vine]]s, and [[orchard]]s, as well as [[animal husbandry]] (cattle and swine).

== References ==
{{Reflist}}
{{Economy of Europe}}

{{San Marino topics}}

[[Category:Economy of San Marino| ]]
[[Category:Economies of Europe by country|San Marino]]