San Marino Ministry of Finance published a press release summarising the International Monetary Fund's preliminary findings after its 1 to 5 June 2026 visit. The update points to stronger 2025 growth and public finances, alongside better bank liquidity and asset quality, but it also flags a weaker 2026 outlook and the need for further work on bank profitability, capital and residual vulnerabilities. Gross domestic product growth accelerated to 1.5% in 2025 from 1.0% in 2024, driven mainly by export-oriented sectors, and is projected to slow to 1.3% in 2026 as regional activity weakens and energy prices rise. Inflation reached 2.3% and unemployment rose to 4.5% in April 2026. The 2025 primary surplus was 2.4% of GDP, supported by tax revenue and controlled spending, while a structural primary surplus of about 2.5% of GDP is projected for 2026 despite higher wage spending and with energy-sector support measures helping contain price pressures. In banking, liquidity and asset quality improved and the net non-performing loan ratio fell to 11.1% in 2025. The asset management company's recovery process is expected to allow full repayment of state-guaranteed senior securities by mid-2027. The ministry identifies the next priorities as building reserves and reducing debt, raising bank profitability and capital, addressing remaining weaknesses through credible plans and strict supervision, improving the regulatory treatment of securities backed by non-performing loans, monitoring new investors and continuing bank cost optimisation.

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