International Trade in San Marino

News Related to International Trade in San Marino

Business outline for San Marino

Economic Overview

The country has been particularly affected by the international financial crisis, the effects of the crisis were combined with the fiscal measures taken in Italy, and the scandal that touched the large financial institution of the country.  According to the estimations, its growth should contract by -7% in 2010. 

In order to face the deep recession that the country is experiencing, the government has applied a strict budgetary policy aiming to reduce costs and to stimulate the key economic sectors.  The most important priorities of the plan are: to accelerate tax reform, to adopt structural reforms aiming to strengthen the financial sector, a reinforcement of the bank system and efforts to fight against money laundering and the financing of terrorism.

San Marino has a high standard of living and the several social benefits are factors that contribute to the good living conditions of the inhabitants of San Marino.  Unemployment, which traditionally is very low, has increased to 3% of the active population in 2010.

FDI in Figures

Foreign investment inflows into San Marino are decreasing, a trend that was accentuated by the global economic slowdown and the recession that the country is currently facing.

FDI is considered an essential component to give support to the country's transition process. The factors that encourage foreign investment into the country include an efficient banking system, liberalized labor laws and an open market economy.  The narrowness of its market, the economic difficulties and the financial scandal that touched the country are some of the factors that discourage FDI.

The main sectors aimed by foreign investments are the ceramics, tiles and furniture manufacturing sectors. The main investing countries are Italy and China.

Foreign Trade Overview

San Marino is open to trade.  In fact, San Marino depends heavily on foreign trade and conforming to the government politics, it profits from good relations with Italy, its neighboring country. 

Customs duties are relatively high in San Marino. Although the country has an easy access, the lack of skilled labor force as well as the high cost of transportation and infrastructures represent trade barriers.  

San Marino has modernized its laws and its regulations regarding business, it has eliminated most of the tax advantages that their local companies enjoyed and it has reduced its expenditures on health care.  These are measures that encourage foreign trade. 

San Marino exports more than what it imports, which creates a surplus trade balance. The perspectives seem to be rather negative for San Marino's foreign trade and its exchanges have been reduced under the effect of the recession. But even then, San Marino should maintain its positive trade balance. 

The main trading partner of this country is Italy.