San Marino - Overview of economy

The economy of San Marino is tiny but, nevertheless, it is stable and quite prosperous, particularly when compared to other Southern European countries. More than half of the country's gross domestic product 's (GDP) total worth of about $860 million has been traditionally produced in the tourism industry. On the average, close to 3.5 million visitors travel to San Marino annually, a huge number compared to the country's population of about 27,000.

Interestingly, one of the most reliable sources of income within tourism, apart from hotels, restaurants, shops, and other facilities, is the sale of collectibles and souvenirs such as historic coins and the world famous Sammarinese picturesque postage stamps, which are produced by the government. San Marino issued its first commemorative stamps in 1894 and, since then, these have become part of a notable and sustainable source of income. All 10 of the post office branches in San Marino sell such stamps and collectable coins, including some legal gold tender coins (lawful money).

Besides the tourism industry, San Marino makes most of its income from the manufacture and export of ceramics, tiles, building material, furniture, clothing, fabrics, paints, and some quality brands of spirits and wines. San Marino's bank system forms an integral part of the Italian banking system. Other key sectors are electronics and Internet-related activities.

Traditional economic activity in San Marino in the past relied mostly on stone quarrying, agriculture, sheep breeding, and wine and cheese making. Most Sammarinese families historically made their living as farmers and/or stone cutters. Building stone is the most important of the natural resources, as in much of Italy. Today's tiny agriculture sector focuses mostly on grains, grapes, and other fruits, as well as on animal husbandry, mostly cattle and pigs.

The per capita level of output and standard of living in San Marino are reasonably high and comparable to those of surrounding Italy, with a GDP per capita of about $32,000 (2000 estimate). GDP growth for the same year was 8 percent. San Marino is closely associated with the economic structures of the EU through the Italian economy and monetary and customs systems, with which it is closely integrated. San Marino also receives payments from the Italian government in exchange for permitting its monopolies on tobacco and other commodities on its territory.