Maroc - ITALICA.SM - A la Une - 27/Sep 14:55

IMF: 'San Marino's growth model proved to be resilient'

[ Italica ] - San Marino's diversified economy is resilient, but additional measures are needed to address challenges. In 2024, San Marino's GDP was up 1 per cent, the International Monetary Fund reports in its concluding statement of the 2025 Article IV Consultation. Projections see a 1.2 and 1.3 per cent growth in 2025 and 2026, respectively. Strong private domestic demand, increased regional tourism and rising real wages had a positive impact on the country's economy. Although San Marino showed a strong fiscal position in 2024, spending pressures are expected to increase in 2025, evidencing the need of further fiscal consolidation to diminish risks. The debt-to-GDP ratio is still high (62.8 %), but continues to decline in line with the government's goal to reduce it below 60 per cent. The IMF recommends an additional fiscal effort (roughly 0.8% of GDP over the next two years) to be implemented through income tax reform, introduction of a well-designed Value Added Tax, progressing government digitalisation, advancing public spending efficiency, public wages and pension containment. Banks have improved their liquidity and asset quality, but further actions need to be taken: further reduction of non-performing loans ratio (16.9 per cent in 2024), increase capitalisation of some banks and promptly adjust costs are fundamental actions to be taken. San Marino should continue to strengthen its Anti-Money Laundering and Countering the Financing of Terrorism framework, with accurately updating beneficial ownership records and strengthening the Financial Intelligence Agency's resources. San Marino has 15 years to meet the requirements of the EU association agreement, but accelerating reforms and improving communication with the public will reduce uncertainties and improve confidence. [September 27, 2025 - Italica]