As the smallest country in the world, Vatican City faces significant financial challenges despite its global religious influence. Following the recent passing of Pope Francis, discussions have arisen concerning the economic stability of this independent nation. For years, the Vatican has grappled with a precarious financial situation, marked by an escalating annual deficit reaching over $90 million in 2023. Moreover, concerns about the sustainability of its pension fund highlight the need for urgent intervention to address growing imbalances.

Despite these difficulties, Vatican City employs various strategies to maintain its operations and fulfill its missions. A notable source of revenue comes from Peter’s Pence, an annual collection of donations from Catholics worldwide, contributing approximately $27 million annually. The largest contributions typically originate from countries like the United States, Germany, and Italy. Additionally, the Vatican relies on income generated from managing its real estate properties, although only a fraction is available for economic returns. Tourism plays a crucial role as well, with millions of visitors contributing through museum admissions, tours, and purchases of exclusive items such as stamps and coins.

Beyond merely sustaining itself, Vatican City strives to make meaningful contributions to society. Much of its funds are directed towards charitable endeavors, including aiding the impoverished and providing medical assistance through institutions like the Bambino Gesú Hospital. This commitment underscores the importance of balancing fiscal responsibility with humanitarian efforts. As Vatican City continues to navigate its financial landscape, it serves as a reminder of the resilience required to uphold values while addressing economic challenges.