Page 43 - Economic report 2020

2021 figure has been revised downward since TREND IN GVA BY SECTORS
publication last year), although this is still well Interannual variation rate in real terms (%) Chart 5.5
below the high it represented just before the
property and financial crisis (+13% in 2006).

The strong dynamic in activity in the
construction sector is reflected in the growth
in other indicators, such as approved square
metres (+48.2%), imports of building materials
(+37%), property transactions (+6.4%) and
public investment expenditure (+7.1%), although
all these areas, except the last, grew at a slower
rate than in 2021. All in all, this continued to
favour job creation in this sector (a 5.4% increase 2021 2022
in employees in 2022 and 6.9% in 2021),
while growth in apartment prices accelerated, Source: Department of Statistics.
encouraged by the lively demand for property.
The confidence indicator for
The results of the Chamber’s surveys corroborate industry hit record levels.
the good moment in the construction sector,
with the evaluation of the business situation
still at very high levels, thanks to the housing segment, although they also indicate a slowdown
in activity. So, businesses have indicated that the volume of executed works is still high but that
contracted works have dropped off. All this has led to significant increases in sales figures (+8.7%)
and investment (+5.6%), but less intense than in the previous year.
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Regarding industry and manufacturing, the trend in 2022 was moderately favourable, if we look
at the real GVA data, which show growth of 0.8% compared with the downturn of 0.9% recorded
in 2021. However, note that industry represents less than 5% of total GVA, meaning that any
trend has a limited effect on the economy as a whole. The improvement in activity was also seen
in a notably strong increase in the number of employees in the sector, by 5.8%, contrasting with
the decline in the previous year (-3.3%).

Equally, the replies to the Chamber’s surveys from businesses also depict a clear improvement in
the industrial climate and business activity, so the confidence indicator increased on annual average

TREND IN BUSINESS ACTIVITY BY SECTOR
Balance between the percentage of positive and negative replies Chart 5.6

Industry Construction Commerce Hotel sector Andorran economy: general developments | V. Activity and demand

Source: Chamber of Commerce, Industry and Services of Andorra.