Andorrans voted this Sunday in favor of continuity, giving confidence to Xavier Espot, current head of government, for another four years. And the fact is that the principality seems like an island in the middle of so many storms that exist in the countries around it. The growth of the Andorran economy in 2022 was 9 percent and for the next few years it is expected to rise well above the European average. The elimination of bank secrecy in 2016 has not caused any turbulence, and the sector closed last year’s financial year with a positive result of 113 million euros. The climate crisis that could affect snow tourism, one of the great resources of the Andorran economy, is also not noticed in the principality because this season is close to reaching a great record of ski passes at the Grandvalira macro station. The recent celebration of the finals of the Ski World Cup on these slopes is the best proof of the organizational capacity of the Country of the Pyrenees.
The only cloud on the horizon is the association agreement with the European Union, which means Andorra’s access to the European internal market and will allow the free movement of people, goods, services and capital. The Andorran Government and the European Union authorities have been negotiating for seven years, and everything seems well focused. However, one of the fundamental keys will be to know what the Andorran tax model will look like, which is a great attraction for companies and individuals.
The reality is that the naysayers who predicted an economic crisis in the small country at the expense of the elimination of banking secrecy are today facing reality. Tourism and commerce continue to be the two main engines of the economy, to the point that the price per square meter of housing in 2022 grew by 6.1%. Anyone who visits Andorra will notice the great intensity of construction in the country.
Espot will have an absolute majority with its formation, Democrats, to maintain its roadmap. Andorra has chosen stability.
