Page 48 - Economic report 2020

Andorran GDP slowed in the first QUARTERLY TREND IN ANDORRAN
quarter of 2023, to 3.5% year on year. GVA BY SECTORS Chart 5.9
Interannual variation rate (%)

economy (+3.4%) with very similar growth to the
previous quarter. Agriculture also saw a positive
rate (+0.9%), but lost momentum compared
with the rate in the second half of 2022, while
industry stagnated in the first quarter after the
fall in activity in the last quarter of 2022.

Within services, the subsector of financial,
real estate, professional and technical services
saw the greatest growth in GVA (+4%), with
slight acceleration since the fourth quarter of Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
2022. This is followed closely by the subsector
of commerce, hotels and catering, transport, Source: Department of Statistics.
information and communications (+3.7%), which
lost momentum compared with the previous quarter, and further behind, the branch of public
administration, education, health, social and personal services (+1.8%), which accelerated.

The tendency for the growth in Andorran economic activity to moderate can also be seen in
the trend in the main indicators of activity available for the first few months of 2023, although the
increases are still significant and point to the economy continuing to advance at a good pace.
Specifically, a cumulative slowdown in growth was recorded over the first six months of the year
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in the two key indicators of numbers of visitors
and imports, which are still at high levels The growth in numbers of visitors
(+14.5% and +8%, respectively), while there and imports moderated in the
were falls in electricity demand (-2.4%) and
vehicle registrations (-14.6%). Equally, the drop first half of 2023.
in imports of building materials is an indication
of some exhaustion in the construction cycle. In parallel, the cumulative number of employees to
April also lost momentum, although still growing at a notable rate of 6.6%, led by the sectors of
hotels and catering and commerce. This meant that the number of job seekers continued to fall
significantly in the first half (-11%). All in all, this suggests a positive trend in demand and economic
Andorran economy: general developments | V. Activity and demand
activity during the first half of 2023, but with a tendency towards progressive loss of momentum.

In this context, one of the main preoccupations for the next few months is the loss of dynamism
in consumption due to the steep rise in prices, but also the impacts on activity from toughening
finance conditions and a weakening foreign context – internationally and especially in Europe.

SUMMARY OF FORECASTS FOR THE ANDORRAN ECONOMY 2023-2024
Interannual variation rate (%) Table 5.5

TOTAL NUMBER OF INTERNATIONAL GOODS CONSUMER PRICE
GDP GVA
WAGE BILL EMPLOYEES TRADE (NOMINAL) INDEX
Year Nominal Real Nominal Real Nominal Imports Exports December Annual average
2023 5.5 1.4 5.4 1.4 5.4 7.9 5.5 2.2 4.2 4.8
2024 5.6 2.2 5.4 2.1 5.4 4.5 4.6 7.8 2.9 3.6

Source: Department of Statistics.