Republic of San Marino: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of San Marino

International Monetary Fund

No 2025/312, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation discusses that San Marino’s economy maintains positive momentum. Its diversified growth model proved to be resilient to shocks. Growth is higher than expected, and fiscal primary balance is strong. Continuing reforms underpinned further reduction in banking sector vulnerabilities, however, significant challenges remain. Notwithstanding recent fiscal overperformance, additional consolidation is essential to mitigate financing risks, build fiscal buffers, and ensure the debt-to-gross domestic product ratio continues to decline. Key priorities include implementing income tax reform, containing the public wage bill, and improving public spending efficiency. External downside risks prevail, driven by uncertainty. Domestic risks stem from financial sector legacy issues. On the upside, faster implementation of the EU association agreement could lift growth. Financial sector reforms should be further advanced to improve asset quality, increase capitalization, and accelerate banks’ cost structure adjustments. Structural reforms, needed to boost economy-wide productivity, should be prioritized, including those aimed at the implementation of the EU association agreement.

Keywords: staff report; finalized reform; progressive tax credit; staff statement; staff appraisal; Financial sector; Income and capital gains taxes; Fiscal stance; Global; Europe (search for similar items in EconPapers)
Pages: 78
Date: 2025-11-25
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=572046 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2025/312

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().