flag Andorra Andorra: Contexto econômico

Economic Indicators

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Andorra's economy is dependent on foreign trade and relies primarily on tourism, commerce and financial services. Growth has picked up slowly in recent years but remains sensitive to external impacts: as such, it was severely hit by the COVID-19 pandemic (with a GDP contraction of 11.9% in 2020), but rebounded strongly in 2021 (+8.9% according to the IMF). In 2022, growth was estimated at 8.6% by Fitch Ratings, thanks to the excellent performances of the tourism sector (the country recorded a record level of tourist arrivals during the summer) and positive contributions by the services, financial, real estate, professional and scientific sectors. Fitch Ratings expects a significant deceleration in growth in 2023 and 2024 due to the impact of base effects and the limited growth capacity of the economy. Nevertheless, despite the deceleration, by 2024 the real GDP level will be 9.3% higher than the levels observed in 2019.

Andorra's public finances are generally sound, and low levels of general government debt provided the authorities with ample space to respond to recent external shocks. The improved recovery momentum and ongoing diversification of the economy into new sectors contributed to a rise in the government's revenues in 2022, although they were offset by the higher cost of the measures taken to contain the increase in energy prices, resulting in a general government fiscal deficit of 0.7% of GDP. In 2023, Fitch Ratings forecasts an improvement in the general government fiscal balance to -0.3% of GDP, before it returns to a surplus at 1.3% of GDP in 2024. According to Andorra's fiscal rules, central government debt can exceed 40% of GDP only under exceptional circumstances. When this threshold was breached in 2020, the government approved a financial sustainability plan aimed at reducing the ratio. The target was achieved in 2022 when the debt-to-GDP ratio returned below the threshold (at 39.5%), and it is expected to follow a downward trend over the forecast horizon, reaching 37% by 2024. The rapid economic recovery, along with a return to stable primary surpluses and reduction of the government's deposits, which have grown as a result of the large Eurobond issuances, will pave the way for debt reduction. As of end-2021, the central government's liquid assets stood at EUR 445 million, equal to 15.8% of GDP (Fitch). Andorra’s inflation rate remained below the EU’s average in 2022, reaching 6.2%, driven by energy and food prices, and is expected to decrease to 5.9% in 2023 and 3.7% in 2024 (Fitch Ratings). The agricultural sector's contribution to the economy is limited, accounting for 0.6% of GDP. The production is small, with arable land representing only about 5% of the country’s surface. The main productions are small quantities of rye, wheat, barley, oats, vegetables, tobacco, sheep and cattle. Therefore, most food has to be imported, making the economy vulnerable to changes in fuel and food prices. Industry accounts for 12.7% of GDP, while services play a major role: the Andorran economy is in fact based on its services sector (79.8% of GDP), notably tourism, real estate and finance (World Bank, latest data available). The banking sector is relatively large when compared to the country’s size, with the total banking assets representing around 6 times the nominal GDP, which may pose risks to the economy and the government's balance sheet, although these risks are mitigated by the high liquidity of the system and newly-created FX reserves.

Andorra's income per capita is higher than the European average, and the country has one of the highest life expectancy rates in the world. As a result, the urban environment in the Principality is safe, the healthcare system is well-developed, and the education system is trilingual (Catalan, French and Spanish). After reaching its highest level in 10 years during 2021, the estimated employment rate in Andorra reached 82.7% of the population in the fourth quarter of 2022, with a low unemployment level (1.7% - data Andorran Department of Statistics).


Monetary Indicators 20152016201720182019
Euro (EUR) - Average Annual Exchange Rate For 1 ZAR

Source: World Bank - Latest available data.


Main Sectors of Industry

Breakdown of Economic Activity By Sector Agriculture Industry Services
Value Added (in % of GDP) 0.5 11.9 78.1
Value Added (Annual % Change) 1.5 4.9 7.1

Source: World Bank - Latest available data.


Country Risk

See the country risk analysis provided by Coface.


Indicator of Political Freedom


The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Political Freedom:

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House


Indicator of Freedom of the Press


The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

World Rank:

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Sources of General Economic Information

Main Online Newspapers and Portals
Diari Andorra (Catalan)
BonDia (Catalan)
Andorra Tourist Guide
Useful Resources
Ministry of Finance
Andorra Chamber of Commerce, Industry and Services
Andorran Financial Authority

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Latest Update: November 2023