Republic of San Marino: 2022 Article IV Consultation-Press Release and Staff Report

November 23, 2022

Preview Citation

Format: Chicago

Republic of San Marino: 2022 Article IV Consultation-Press Release and Staff Report, (USA: International Monetary Fund, 2022) accessed December 22, 2024

Summary

San Marino's economic activity showed remarkable resilience throughout the pandemic. After Russia's invasion of Ukraine, San Marino faced an unprecedented energy price shock which, compounded with a food price shock, led to high inflation and real income erosion. However, strong external demand amidst global supply chain constraints and an elevated inflow of tourists have boosted economic activity so far this year. At the same time, San Marino secured beneficial energy import prices this year and next that have resulted in tariffs below regional peers at minimal fiscal costs. Despite a strong economy, the fiscal position in 2021 remained relatively weak. However, greater reliance on domestic debt along with a large share of long maturing and low interest debt is supporting favorable debt dynamics given higher inflation. Banks' capitalization and profitability improved in 2021, deposits continued to grow, while credit contracted. Progress halted recently while vulnerabilities remain given very large nonperforming assets and weak capitalization.

Subject: Bonds, Energy prices, Expenditure, Financial institutions, Fiscal policy, Fiscal stance, International organization, Monetary policy, Pension spending, Prices, Public debt

Keywords: Bonds, Energy prices, Eurobond rollover, Europe, Fiscal stance, Global, Liability positions vis-a-vis nonresident, Pension spending, Price signal, Sta balance of payments statistics, Sta government finance statistics

Publication Details

Pages:

68
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2022/349
Stock No:

1SMREA2022001
ISBN:

9798400224447
ISSN:

1934-7685

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