08-02-2023, 08:54 AM
The smallest country in the world, Vatican City, is situated on the west bank of the Tiber River. Here lies the headquarters of the Roman Catholic Church, one of the largest and wealthiest organizations in the world. With over five million tourists a year, and only about eight hundred permanent residents, the country is like no other. Since 313 A.D, when the Catholic Church became the official religion of the Roman Empire, the power of the church has constantly expanded. Given the peculiarity of this country, you might wonder how its economy functions, and how it might compare to other countries. However, the Vatican’s economy is filled with secrets, conspiracies, and scandals, leaving the truth behind the country hard to uncover.
Although it is hard to find the exact numbers regarding the finances of the Vatican, there are multiple reports that shine a light on the possible economics behind the Holy See, the governing body of the country. To start, the Holy See generates revenue through something called Peter’s Pence. Since the 8th century, this has been the term used to describe the money received from donations by Catholics around the world, given to the Pope on an annual basis. The country also collects revenue through admissions to its museums, tours, highly sought-after stamps and coins, and the sale of publications. (Parker, 2021) Lastly, the Holy See also invests in companies and artifacts, hoping they appreciate in value. (CIA, 2022)
The coins mentioned above that are highly valued by collectors are minted within the walls of the city and are supposed to be financially equivalent to the euro. However, very few are made, causing collectors around the world to buy these coins imprinted with current and former Popes for significantly more than they are supposed to be worth. The history behind these coins is unique, as they were made due to the fact that the Vatican was not allowed to join the European Union, and thus could not use the euro as a form of currency. The main reason for their denial into the EU was because of their form of government. The EU requires all countries entering this pact to be democracies, but the Vatican is ruled by a monarchy, with the Pope acting as the king.
The Catholic Church is estimated to be worth about 30 Billion USD. (Bourke, 2018) Along with this, the Central Intelligence Agency’s World Factbook estimates the city had revenues of $315 million and expenditures of $348 million in 2013. However, after 2013, the Holy See has experienced a deficit estimated to be upwards of $30 million. This was primarily due to the decreasing price of gold, a valuable and largely held asset of the Catholic Church, not only in the form of gold bars but also in the massive amounts of precious metals that can be found in artifacts and buildings owned by the church.
Although it is hard to find the exact numbers regarding the finances of the Vatican, there are multiple reports that shine a light on the possible economics behind the Holy See, the governing body of the country. To start, the Holy See generates revenue through something called Peter’s Pence. Since the 8th century, this has been the term used to describe the money received from donations by Catholics around the world, given to the Pope on an annual basis. The country also collects revenue through admissions to its museums, tours, highly sought-after stamps and coins, and the sale of publications. (Parker, 2021) Lastly, the Holy See also invests in companies and artifacts, hoping they appreciate in value. (CIA, 2022)
The coins mentioned above that are highly valued by collectors are minted within the walls of the city and are supposed to be financially equivalent to the euro. However, very few are made, causing collectors around the world to buy these coins imprinted with current and former Popes for significantly more than they are supposed to be worth. The history behind these coins is unique, as they were made due to the fact that the Vatican was not allowed to join the European Union, and thus could not use the euro as a form of currency. The main reason for their denial into the EU was because of their form of government. The EU requires all countries entering this pact to be democracies, but the Vatican is ruled by a monarchy, with the Pope acting as the king.
The Catholic Church is estimated to be worth about 30 Billion USD. (Bourke, 2018) Along with this, the Central Intelligence Agency’s World Factbook estimates the city had revenues of $315 million and expenditures of $348 million in 2013. However, after 2013, the Holy See has experienced a deficit estimated to be upwards of $30 million. This was primarily due to the decreasing price of gold, a valuable and largely held asset of the Catholic Church, not only in the form of gold bars but also in the massive amounts of precious metals that can be found in artifacts and buildings owned by the church.