Borgo Maggiore

Borgo Maggiore functions as San Marino's commercial hub, its position at Mount Titano's base making it the natural market town where goods flow between the historic capital above and Italian territory below. The funicular railway connecting Borgo Maggiore to the City of San Marino creates tourism infrastructure that channels visitors uphill to medieval towers while commercial activity concentrates downhill where logistics are easier. This spatial sorting—ceremonial functions above, commercial below—characterizes many hilltop settlements forced to adapt to modern economies. San Marino's manufacturing sector (ceramics, tiles, furniture, wine) concentrates in lower-elevation castelli like Borgo Maggiore where flat land exists. The 2024 GDP growth of 1% (up from 0.4% in 2023) reflects service sector strength benefiting from tourism boom and robust domestic consumption. Medieval markets and festivals persist—the oldest republic maintained traditions that tourist economies now monetize. By 2026, EU association agreement implementation will determine whether San Marino's manufacturing can compete in European markets without customs barriers that currently disadvantage exporters.