Donations to the Holy See worth more than 237 million euros ($421 million) helped it turned around a 51 million euro deficit to record its first surplus in years, according to the Vatican's economic secretariat.
A budget report issued on Wednesday, local time, showed the Holy See generated an income of more than 1.23 billion euros in 2024, up from 1.152 billion euros in 2023.
The turnaround meant the Holy See went from a 51.2 million euro ($91 million) total deficit in 2023 to a 1.6 million euro ($2.8 million) surplus in 2024.
"The report highlights a clear improvement and, while prudently aware that full financial sustainability is a long-term goal, a clearly positive direction can be observed," a Vatican statement read.
External donations from followers of the Catholic Church represented 43 per cent of the Holy See's revenue, while another 40 per cent came from internal sources such as real estate and commercial products it sells.
[DW pie chart]The Holy See received 20 million euros ($35.5 million) more in donations last year than in 2023, according to the budget report.
It said the results showed the Vatican had managed to cut its structural deficit — the gap between ordinary revenues and ordinary expenses — by 50 per cent.
The Vatican acknowledged it still amounted to 44 million euros ($78.1 million) in 2024, underscoring the long-term financial challenges facing the newly elected Pope Leo.
"2024 could be a turning point if, after years of stable or growing operating deficit, the Holy See [continues] the reduction of its operating deficit in the coming years," the budget documents read.
Administrative and general costs of 187.7 million euros were the Holy See's largest financial expense in 2024, while another 175.4 million euros ($311.7 million) was spent on the wages of Vatican personnel.
Those two cost areas rose in 2024 by 6 per cent "mainly driven by inflation", the Holy See said.
The documents showed that the Holy See oversaw the spending of more than 393 million euros ($698.4 million) for "Apostolic Mission and Papal Funds" outreach initiatives to maintain and communicate the religious message of the Vatican.
"These Curial institutions offer services to the Church at a global level," a Vatican statement read.
"From support for local Churches to initiatives for the unity of the faith, from the Pope’s communication to the promotion of peace and human development, from liturgical events to the care of the Vatican heritage, to the Pontifical Representations."
The budget shows that the value of assets owned in 2024 by the Vatican was 6.32 billion euros ($11.23 billion) and had increased by 67.4 million euros ($119.7 million) from the year before. The Holy See did not describe what those assets were.
The release of the 2024 financial results come seven months after the death of Pope Francis, who had worked during his time as the pontiff to balance the Vatican's budget.
His efforts included slashing cardinals' salaries three times between 2021 and 2024, Reuters reported.
The Vatican has three main income streams: It takes donations, it has an investment portfolio, and it makes money from admissions to the Vatican Museums.
It also owns the Bambino Gesu Pediatric Hospital in Rome, which is a source of revenue.
The new report does not include data about the growing liabilities within the Vatican's pension fund, which were estimated to total 631 million euros ($1.1 billion) by the Holy See's finance chief in a 2022 media interview.
ABC/Reuters
