IMF Staff Country Reports

San Marino has successfully diversified its economic structure: the previously
oversized banking sector deleveraged following the banking crisis, while manufacturing
and nonfinancial services exports expanded, supported by moderate unit labor costs
and strong corporate balance sheets. Prudent fiscal policy has helped rebuild buffers
and, together with important progress in financial sector reforms, reduced legacy
vulnerabilities. However, public debt remains high and significant challenges persist in
the banking sector. As a euroized small open economy vulnerable to external shocks,
San Marino requires larger policy buffers.