joint estimate between the Fund staff and the Sammarineseauthorities. Owing to a change in methodology for computing the national accounts, the growth rate for 1995 is not available.
2/ 12-month change through September.
4/ Due to a change in methodology, figures from 1990–94 and 1995–96 are not comparable.
5/ In percent of GDP.
6/ Due to a change in methodology for computing the national accounts, ratios to GDP between 1990–94 and 1995–96 are not comparable.
8/ January–September over the
At the outset, I want to convey my authorities’ deepest appreciation for the work done by the mission headed by Mr. Prati. As with previous missions, my Sammarineseauthorities have greatly benefited from Staff advice and continue to enjoy a fruitful relationship with the Fund.
Recent data suggest that the economic recovery is under way, reflecting an improved international economic environment. In May, unemployment decreased to 3.17 percent against 4.09 in the same period of 2003 while imports have picked up increasing to 6 percent in
This Article IV Consultation focuses on San Marino’s prolonged recession. The global crisis has led to a significant decline in budget revenues. However, San Marino’s sizable pre-2008 budget surplus, combined with recent tax measures and efforts to restrain expenditures, have helped contain the deficit at about 3 percent of GDP. Executive Directors noted that San Marino’s economy will face financial and fiscal challenges in the near term, as well as uncertain medium-term prospects. Directors considered that, notwithstanding the recent recapitalization, the largest bank will need more capital to meet prudential requirements.
At the outset, the Sammarineseauthorities wish to thank the Fund’s mission teams for the high-quality and balanced reports, which are testament to the excellent dialogue and working relationship with the Fund. The authorities have greatly benefited from the conclusions of the FSAP, as well as from the Article IV discussion on policies to mitigate macro-financial vulnerabilities and support growth. They broadly share the Fund’s recommendations.
San Marino’s economy has not been immune from the global crisis. Growth turned negative in 2008, deteriorated in
percent in 1996. 2 The financial sector, while spawning few jobs, has generated sizable capital incomes; for example, profits in the banking sector averaged over 17 percent of GDP in 1995–96. The public sector (including the public enterprises) continues to account for a sizable share of economic activity, and its share of employment has remained stable since 1980, at about 25 percent.
Figure 1. San Marino: Employment by Sector
Source: Data provided by the Sammarineseauthorities.
A. Aggregate Supply and Demand
7. San Marino has enjoyed rapid growth in
The Sammarineseauthorities would like to thank staff for the candid and helpful discussions held during the Article IV consultations and for the valuable recommendations and tailored advice in the Report and Selected Issues Paper. They broadly concur with staff’s analysis and, as in the past, plan to make good use of the accurate and detailed Fund’s recommendations.
In the wake of the 2008 global crisis, the Sammarinese economy and financial sector were hit by several concurrent shocks. Primarily of external origin, such as Delta Group
Source: Data provided by Sammarineseauthorities.
San Marino: Basic Data
Total area (sq. km.):
population (December 200):
GNP per capita (current US$, 1999):
Life expectancy (2000):
Infant mortality (1995/1999 average):
7.9 per thousand
Output and Prices
Real GDP 1/
This paper examines the development of the business model thus far and considers options for the future. The development of San Marino’s financial system over the past two decades is outlined. San Marino’s financial sector focuses on services to its residents and the residents of its large neighbor. San Marino’s competitiveness is assessed on the basis of real exchange rates. The importance of a strong relationship with Italy may also require San Marino to take more initiatives to amend its position and acquire new skills.
Liquid assets to total assets
Liquid assets to short-term liabilities
Sources: International Financial Statistics; Sammarineseauthorities; World Bank; and IMF staff calculations.
1/ For the central government. Does not include possible costs of future bank recapitalization.
2/ For 2014, latest available.
3/ Based on total loan loss provision, which covers nonperforming and performing loans.
1 Under Article IV of the IMF’s Articles of Agreement, the IMF holds
unemployment rate edged up to above 8 percent (December) after moderating in the first half of the year, while the number of enterprises further contracted. Headline inflation picked up and then retrenched to about 1.6 percent reflecting volatile food and transport costs, but core inflation remained broadly stable at 0.7 percent (December).
Real GDP Growth
Source: Sammarineseauthorities and IMF staff.
Number of Enterprises
(Percent, contribution to growth in 3-month average)
Unemployment Rate and