Page 54 - Economic report 2020

VII. Foreign sector

1. Foreign trade flows

2022 was marked by a major rise in both
exports and imports, which both achieved the FOREIGN TRADE
highest values in the historical series. These Interannual variation rate (%) Chart 7.1
results contrast with those obtained in the
previous year, when the variations were very
modest (+1% imports and -1.8% exports).
However, it should be noted that part of this
increase in trade flows – expressed in current
euros – can be explained by the rising prices
of most goods due to rising production costs.

Exports (excluding works of art) grow
19.2% and imports 34%, reaching the Imports Exports
highest values in the historical series. (*) Excluding the entry for works of art and antiques because it saw an

extraordinary increase in 2020 and 2022 which distorts the global result.
Source: Department of Tax and Frontiers.
Specifically, in 2022, total Andorran imports
rose to €1,773.1 million, a figure that represents
52
an increase of 34% against the previous year. For their part, total exports rose to €367.5 million,
representing a positive variation of 160.9% in relation to 2021. Now, without chapter 97 (Works
of art, collector’s items and antiques), which saw an unusual increase in February 2022, exports
would have increased 19.2%. If we exclude chapter 97, the coverage rate (exports/imports)
reached 9.4%, 1.2 points below the figure of the previous year, when the highest level in the
historical series was reached (10.6%).

As has been seen, the volume of imports is traditionally greater than exports. This circumstance
can be explained by the fact that the Andorran economy presents a high trade deficit, due to
the importance of the demand for imported consumer goods (for both domestic use and tourism)

Andorran economy: general developments | VII. Foreign sector
Chart 7.2
TRADE DEFICIT - Millions of euros

Imports Exports Deficit
(*) Excluding the entry for works of art and antiques because it saw an extraordinary increase in 2020 and 2022 which distorts the global result.
Source: Department of Tax and Frontiers and own preparation.