Page 92 - Economic report 2020

8.9% from the investment figure in 2021. This is the third consecutive year of decline in real
investment by the Government and the lowest figure in the historical series since 1992. If we
add capital transfers (chapter 7 of the Budget) which rose to €33.1 million in 2022, the total
investment effort of the executive government amounts to €56.2 million, 3.0% less than in 2021.
A major part of this investment relates to the Ministry of Land and Housing, specifically €20.8
million, a figure that represents a decline of 13% since 2021. In the table 11.2 are details of the
public works settled in 2021 and 2022 by the Ministry of Land and Housing, by programmes.

The categories that saw the most important reductions in the monetary value of investment
were health infrastructure (from €3.3 million in 2021 to €395,230 in 2022), school infrastructure
(from €4.2 million to €713,368) and cultural infrastructure (from €1.6 million to €278,037). These
decreases can be explained by a context of strong investment during the pandemic years. In
contrast, investment increased most in administrative infrastructures (from €1 million in 2021
to €2.6 million in 2022) and road infrastructures (from €4.5 million to €7.4 million), two kinds of
investment that had seen major cuts during the health crisis.

As for the Comú governments, settled real investment increased 17.7% to €45 million, the highest
figure since 2007, just before the financial and property crisis. By parishes, the most important
investment expenditure was in Andorra la Vella, with €16.1 million; Encamp, with €8.3 million;
Escaldes-Engordany, with 6.3 million; Canillo, with €5.1 million, and La Massana, with €4.8 million.
Lastly, with much lower amounts are Sant Julià de Lòria, with €2.6 million and Ordino, with €1.8
million. In 2022, real investment shrank in three parishes (Canillo, Encamp and Ordino) and
increased at very high rates in the other four (Andorra la Vella, La Massana, Escaldes-Engordany
and Sant Julià de Lòria).
90
Business activity in construction As is evident from the results of the Chamber’s
continued to improve and the business climate survey, construction is still

prospects for 2023 remain positive. the most dynamic sector of the Andorran
Andorran economy: developments in the main sectors | XI. Construction and related industries
economy, with a very lively rate of expansion,
clearly higher than in the other branches
of activity. Savings accumulated over the last two years, the positive trend in employment and
major dynamism in foreign demand have boosted housing, which has become more attractive
as an investment asset within the current context of uncertainty and volatility in the financial
markets. The construction companies that took part in the situation survey indicated year-on-
year growth in turnover in 2022 of 8.7%, a rate which, despite being lower than in 2021 (+29%),
is still very significant, as it is above the average for the period 2017-2019 (+7.1%). Moreover, this

Chart 11.3
BUSINESS ACTIVITY - CONSTRUCTION SECTOR

Balance: Difference in opposing responses (positive and negative) as a percentage.
Source: Chamber of Commerce, Industry and Services of Andorra.