Page 45 - Economic report 2020

BUSINESSES’ OPINIONS ON ECONOMIC DEVELOPMENTS IN 2022
Table 5.3

Results of the situation survey in retail trade
Large
2022 COMPARED WITH 2021 Total retail Clothing & Household Hygiene IT & Vehicles & Other commercial
(as % of businesses) trade Food footwear equipment & health electronics accessories commerce establishments
Sales figures Higher 42 46 41 50 35 41 25 42 83
Same 40 37 38 33 43 41 58 40 0
Lower 18 17 22 17 22 18 17 18 17
Average variation (%) 5.0 7.0 0.4 7.3 2.2 8.1 0.2 5.6 12.5

Volume of Higher 27 22 34 27 18 32 29 26 20
investment Same 66 69 59 65 73 61 58 71 80
Lower 7 8 6 8 9 7 13 3 0
Average variation (%) 6.0 0.6 9.8 5.5 5.4 8.7 5.3 6.0 6.0
Number of More 19 24 28 13 4 23 12 22 33
employees Same 73 68 66 77 83 70 79 72 50
Less 8 8 7 10 13 7 9 5 17
PROSPECTS FOR 2023
(as % of businesses)
Trend in sales Upward 36 36 39 31 44 43 33 31 50
figures Stable 48 48 49 55 44 36 52 54 33
Downward 16 17 12 14 12 21 15 15 17
Trend in volume Upward 20 29 12 12 22 23 26 18 33
of investment Stable 66 60 79 78 57 57 59 69 50
Downward 14 12 9 10 22 20 15 13 17

Source: Chamber of Commerce, Industry and Services of Andorra.
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At the same time, the Chamber’s surveys have seen a clear improvement in businesses’ opinions
about the trend in business activity in the hotel sector in 2022, to historically very high levels.
So, hotels indicated a year-on-year increase in turnover of 14.7% on average and of 8.9% in
investment, both much higher than in 2021. The level of occupancy, level of reservations and
prices also increased significantly.

Commerce also followed a clear pattern of recovery. The positive trend can be seen in the increase
in the number of establishments, number of employees and electricity consumption, and also strong
growth in the volume of imports without fuels.
Moreover, the Chamber’s surveys showed an Commerce also showed clear
improvement in business activity and increases signs of recovery in activity.
in sales figures (+5%) and investment (+6%).

Along the same line, financial, real estate, professional and technical activities saw a quite positive
trend, with an estimated increase in GVA of 5.4%, added to the strong growth recorded in 2021
(+12.8%). Remember that this branch of services is the most important in the economy, with over
37% of total GVA.

The profitability of the Andorran The trend in the banking sector in 2022 was Andorran economy: general developments | V. Activity and demand
banking sector continued to improve. quite favourable, with growth in aggregate
sector profits of 16.3%. This increase was
accompanied by an increase in consolidated
gross lending (+4%) due to the Lombard loans granted to private banking clients, and also an
increase in deposits (+14.7%). The demand for lending in Andorra has seen limited growth in
recent years for various reasons, including the process of deleveraging undergone by Andorran
companies and by professionalisation of the sector, which has led companies to finance new