Andorra GDP

Andorra expects to close 2020 year with a reduction of the real Gross Domestic Product (GDP) of 12.7%, according to a press release issued by the Statistics Department with the macroeconomic forecasts for 2020-2023; in nominal terms, the reduction will be 11.7%.

For the following three years, Statistics Andorra forecasts recoveries of around 4% in real terms: 4.3% for 2021, 4.2% for the following year, and 3.7% for 2023. In nominal terms, growth will be around 5%: 5.2% for next year, 4.8% for 2022, and 5.3% for the following year, according to the press release.

These GDP forecasts are based on the fulfillment of two assumptions: that the structural relationship between Andorra’s growth and France, Spain, and the European Union is maintained; and that the growth forecasts for these territories are correct.

In general, and due to the COVID-19 crisis, macroeconomic forecasts depend on “various uncertain factors”, among which Statistics Andorra highlights the duration of pandemics and the necessary restrictions, the voluntary social distancing that will affect spending, the ability of workers to get jobs in Andorra and the impact of measures to strengthen job security.

Andorra GDP Macroeconomic Indicators

The forecast for Gross Value Added (GVA) for a real reduction is 12.9% and a nominal reduction of 11.9% for this year. For the following three years, for recoveries similar to those expected to be experienced by GDP.

In real terms, GVA will grow by 4.2% in both 2021 and 2022, and by 3.7% in 2023; and in nominal terms, growth will be 5.1% for next year, 4.8% for 2022, and 5.3% for 2023.

The forecast for the wage bill and the number of employees points to reductions of 8.8% and 2.6% respectively for this year. In 2021 the number of employees will decrease slightly again, to remain stable in the following years (+0.3% and 0.0%).

The wage bill will grow by 5.3%, 5%, and 5.4% over the next three years, according to the macroeconomic forecasts of the Andorran Department of Statistics.

As for international trade, imports will decrease by 3.7% this year, while exports will grow by 21.3%; by 2021, imports will grow by 5.3% and exports will decrease by 0.7%.

Forecasts point to a growth of 7% and 1.8% in imports for the years 2022 and 2023; and 3.8% and 7.4% respectively for exports.

Finally, the forecast for the Consumer Price Index (CPI) will remain stable: -0.2% in 2020, +0.3% in 2021 and +0.7% in 2022.

Annual Andorra GDP Evolution

GDP Per Capita Andorra