San Marino's economy relies heavily on its tourism and banking industries, as well as on the manufacture and export of ceramics, clothing, fabrics, furniture, paints, spirits, tiles, and wine. The per capita level of output and standard of living are comparable to those of the most prosperous regions of Italy, which supplies much of the food San Marino consumes. The economy benefits from foreign investment due to its relatively low corporate taxes and low taxes on interest earnings. San Marino has recently faced increased international pressure to improve cooperation with foreign tax authorities and transparency within its own banking sector, which generates about one-fifth of the country''s tax revenues. Italy''s implementation in October 2009 of a tax amnesty to repatriate untaxed funds held abroad has resulted in financial outflows from San Marino to Italy worth more than $4.5 billion. Such outflows, combined with a money-laundering scandal at San Marino''s largest financial institution and the recent global economic downturn, have contributed to a deep recession, a growing budget deficit, and higher levels of debt. Industrial production has declined, especially in the textile sector, and exports have been hurt by the downturn in Italy, which accounts for 90% of San Marino''s export market. The government has adopted measures to counter the economic downturn, including subsidized credit to businesses. San Marino also continues to work towards harmonizing its fiscal laws with EU members and international standards. In September 2009, the OECD removed San Marino from its list of tax havens that have yet to fully implement global tax standards, and in 2010 San Marino signed Tax Information Exchange Agreements with most major countries. San Marino''s government continues to work with Italy to ratify a financial information exchange agreement, seen by businesses and investors as crucial to strengthening the economic relationship between the two countries.

$1.326 billion (31 December 2007)

$4.584 billion (31 December 2007)

$8.822 billion (30 September 2010)

$8.008 billion (31 December 2009)

Wheat, grapes, corn, olives; cattle, pigs, horses, beef, cheese, hides

Tourism, banking, textiles, electronics, ceramics, cement, wine

Building stone, lime, wood, chestnuts, wheat, wine, baked goods, hides, ceramics

Wide variety of consumer manufactures, food