Page 64 - Economic report 2020

50% is held by non-resident shareholders and which are making a new investment. The United
Kingdom is the fourth foreign country with most investment in Andorra (with only 1.5% of the
total figure), followed by Germany (with 0.8%), Colombia (0.7%) and Russia (0.4%). The rest is
divided between various geographical locations and of little significance.

Globally, since the current Foreign Investment Law came into force in 2012, Spain has had an
average concentration of 37.1% of the investments formalised in Andorra by amount, and France
14.1%. The rest is divided between many countries, notably Luxembourg (6.6%), Russia (1.6%),
Belgium (1.4%) and Ireland (1.4%). Investments where “Andorra” is identified as the country of
origin represent an average of 13.2% of the total over the period 2012-2022.

By sectors, note the strong rebound in 2022 in Rebound in foreign investment in
formalised foreign investment in service provision service provision and real estate
(from €42.1 million in 2021 to €181.4 million in
2022), reaching 46.7% of total investment. and construction.
There was also a strong increase in investment
in real estate and construction (from 16.4 to 91.9 million), which reached 23.6% of the total. The
next most important sectors were – at some distance behind the above – hotels and catering (4% of
the total) and the commercial sector (3.8% of the total). The others represent less than 1% of total
investment. 2022 investment data saw significant growth in all kinds of activity, except in projects,
design or research (-95.5%) and property (-81.1%). On analysing the period 2012-2022, the four
sectors that received most investment are still property (44.3% of the total), service provision
(23.5%), real estate and construction (14.7%) and the commercial sector (7.4%).

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VIII. Public sector

In 2022, the accounts of the Andorran public authorities saw an aggregate surplus, the result of
a positive balance in the central and Comú governments, and practically balanced accounts in
the Andorran Social Security System (CASS). Specifically, the central government had a surplus
of 2.3% of GDP; this is the level of government that most improved the situation of its public
accounts, with a 5.1 point reduction since the previous year (when there was a deficit of 2.8%
of GDP). This correction was possible due to a strong recovery in tax revenue, through both
Andorran economy: general developments | VIII. Public sector
economic growth and the inflationary process, combined with a cut in expenditure. The Comú
governments, on the other hand, increased their surplus by four tenths from 0.5% of GDP in 2021
to 0.9% in 2022, due to revenue growing faster than expenditure. Finally, the CASS ended the
year with an almost balanced budget, contrasting with the slight surplus of 0.1% of GDP in 2021.

The central and Comú governments In 2022, statistics were prepared on public
obtained a surplus, and the CASS ended accounts execution for the whole of the public
the year with an almost balanced budget. sector, i.e. all public authorities in Andorra,
including publicly-owned companies, following
the methodology of the 2010 European System
of Accounts (ESA 2010). According to this information, the settled non-financial expenditure of the
consolidated public sector (discounting internal transfers) in 2022 amounted to €1,146.5 million,
with an increase of 6.8% since the previous year, a figure that represents 36% of Andorran GDP. But
if the total figures are considered instead of the consolidated ones, the non-financial expenditure of
the Andorran public sector would be €1,324 million (41.5% of GDP) and the non-financial revenue
€1,457 million (45.7% of GDP).