Page 102 - Economic report 2020

Sales figures grew in commerce, subsectors, the trend was also fairly uneven.
especially in large retailers and The greatest growth in sales figures was seen
household equipment. in large retailers and the branch of household
equipment, in which almost 50% of businesses
achieved higher turnover than a year earlier.
In contrast, the only subsector that saw a slight downturn in sales figures was vehicles and
accessories, notably affected by the shortage of semiconductors and supply problems.

Among the factors limiting business activity, the rising prices of products and supplies are the
main focus of concern for retailers, with 78% indicating this in the second half of 2022. Concern
about rising operating costs also increased considerably (63% of retailers highlighted it).

As for sales prices, the upward trend was common to most commerce, although it was especially
noted in the segment of food, greatly punished by rising intermediary costs (energy, fertilisers,
etc.) and the fall in agricultural production due to adverse weather conditions. Finally, in line with
the improvement in commercial activity, the labour market continued to present positive figures.

Businesses’ views about the first half of 2023, expressed in the survey, maintain an optimistic
stance, but the level of optimism has fallen compared with one year before and they anticipate
some loss of momentum in commercial activity in the coming months.

2. Financial system

The sector of financial and insurance activities, with the banking system at its core, represents
100
13.8% of Andorran GVA, according to 2021 data. In the last year, this sector’s value to the
economy increased because it benefitted from the economic recovery and was not as affected
by the pandemic as other activities in the services sector.

Financial and insurance activities are an important sector of the economy in terms of GVA, while
in terms of employment, they represent 4.1% of total employees (2022). The main business
areas in the financial sector are private banking and asset management; retail banking, both for
individuals and for businesses, and insurance.

According to official GDP data, published by the Government, financial, real estate, professional
Andorran economy: developments in the main sectors | XII. Services
and technical activities saw an increase in GVA of 5.4% in 2022, which is added to the strong
increase in 2021 (+12.8%). In fact, this sector regained pre-pandemic figures first, and in 2022 is
already 14% above 2019.

In the last decade, the banking sector has had The banking sector has played an
to address constant changes in regulations to important role in encouraging and
adapt to international standards, both on tax
transparency and in the sphere of combatting supporting the social and economic
money laundering and terrorism financing, development of this country.
payment methods, and banking regulations in
general. To these efforts is added their collaboration with the Government in the process of
implementing measures to tackle the consequences of the pandemic, providing the necessary
liquidity to guarantee the sustainability and development of the national economy.

2022 was a year marked by the corporate acquisitions of BancSabadell d’Andorra by MoraBanc
and Vall Banc by Creand Crèdit Andorrà. On the one hand, MoraBanc acquired 50.97% of the
share capital of BancSabadell d’Andorra, which was renamed BSABanc, owned by the Spanish