It seems everyone these days is feeling the effects of the struggling U.S. economy, even the Vatican.

The weak American dollar is proving to be a big problem for the Catholic Church.

Even the capital of Catholicism is feeling the economic pinch.

Last year's balance sheet for the holy city is in the red.

Its administrative core lost about $14-million.

"The expenditures of the Vatican are enormous," explained Delia Gallagher, a Vatican analyst.

"They have schools, hospitals, churches in poor countries throughout the world for which they don't receive any revenue back."

Add in papal trips, it's embassies overseas, and a number of money losing Vatican agencies, but the Vatican did benefit from nearly $80-million in offerings worldwide.

About a quarter of that came from American Catholics, the most from any one country.

But Americans donated in dollars and the Vatican spends in euros.

And last year, the dollar lost 15 percent of its value to the Euro.

So, the church is trying to maximize revenues.

"The church, like any good financial manager, says, uh you know, we got this money, you know, we're going to spend it within the next year, but let's uh invest it," stated Father Thomas Reese.

And in 2007, the Dow Jones was up over six percent, not quite.

In another of the Pope's budgets for the Vatican city state, its investments lost $12.5-million in 2007, compared to an $11-million profit the year before.

Those investment returns have raised questions with some inside the church.

"Pope Benedict is a theologian," said Father Reese.

"He's not a businessman. We don't expect him to figure out the Vatican investment portfolio. That's not his job. But we want to make sure that there are good people doing that. And we don't know it unless there is more transparency."

The Vatican has no legal obligation to disclose its investments.

And in a statement to CNN, a Vatican spokesman said many Vatican investments have "given good results."