The IMF revises Andorra's economic growth upwards in 2022

According to the IMF, of which Andorra is a member since 2020, Andorra will be the second country in Europe with the highest growth in 2022. This was concluded in its last report, where economic indicators and markers of each country are reviewed and prospects are made for the near future according to the current trends of said markers.

So in the report, The International Monetary Fund (IMF) raised Andorra's growth forecasts for 2022. Specifically, the nominal GDP forecast increased from 8.2% where it was to 10.9%, and real GDP also from 4.5% to 6.6%. A fairly substantial increase that has been pleasantly celebrated by the Andorran Government, especially by the Minister of Finance and Government spokesman, Eric Jover, who valued it as "extremely positive figures". The 4.5% is where they had left the data in the notes and previous reports.

These numbers, would place the economic growth of Andorra well above that of the surrounding countries. For example, the forecasts for Spain are 4.3% and for France only 2.5%, well below the Andorran forecasts. The same happens with the eurozone average and its forecast of 3.1% (less than half). That is why Andorra, according to the IMF, would rank second among European countries in terms of economic growth in 2022, only behind ireland.

This fits with the fact that we explained last year regarding the public debt and the solvency of Andorra. The report also modifies the economic growth forecasts for 2023, going from 4.7% to 4.8% of nominal GDP and from 2.7% to 2.0% of real GDP. Although these data do not seem very good news, the truth is that they are much better than those corresponding to neighboring countries. Despite suspicions of a recession or a slowdown in growth, Andorra remains relatively firm.

The Government highlights its satisfaction with the figures. "We are very satisfied, since the data indicates that we are on the right track", affirmed, in this sense, the head of Finance. The figures are "significantly more positive" than the Principality's neighboring countries. Eric Jover stressed that, although the projection of real GDP for 2023 has been reduced by seven tenths, the absolute value of real GDP for 2023 is also higher than the previous one according to this new estimate.

By last, the IMF revised its predictions of inflation placing Andorra at 5.3% by 2022. A figure lower than that of neighboring countries or the Eurozone average, since Spain has 8.8% and France 5.8%, while the Eurozone average is 8.3%. Thus, Jover evaluated that the IMF analysis reinforces the framework in which the Government works and confirms the prudence with which the scenarios for the 2023 annual budget were built, in which a nominal growth of 7.2% was projected for 2022 .

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The IMF revises Andorra's economic growth upwards in 2022
Jose Sanchis, Abast Technology and Systems Specialist, Andorra Insiders
Jose Sanchis

ABAST Technology and Systems Specialist


Andorra Insiders is an information platform about Andorra managed by ABAST, an Andorran professional consultancy firm for legal, tax and accounting services specialized in establishing people and businesses in the Principality of Andorra. More information here.

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