Page 41 - economic report 2021

Box 5.1
INCOME DISTRIBUTION, LIVING CONDITIONS AND RISK OF POVERTY IN ANDORRA

In 2020 (income data for 2019), the Andorran with the working age. People aged 65 and above have
population had an average income per consumption a slightly lower average income (€28,653) and the
unit of €28,502. By gender, the average of men lowest level is that of under-16s (€24,412 on average).
(€30,360) was 14.3% higher than that of women
(€26,573). As for the housing regime, the income of those who
live in rented housing (€25,545) is, on average, 23.7%
Income distribution also presents differences by age lower than those who own their main residence
groups. The highest figure is that of the population (€33,499).
between the ages of 16-64 (€29,366), which coincides
Regarding income distribution, in 2020, 20% of the
population with lower incomes had 9.1% of total
AT-RISK-OF-POVERTY RATE IN ANDORRA income, whereas 20% of the population with higher
COMPARED WITH EUROPE
As % of population income had 38.0% of the income.

Within this context, in 2020, 13.0% of the Andorran
population was at risk of poverty (below the
threshold of €14,388, 60% of the median income per
consumption unit), a percentage that rises to 20.8%
when social benefits and pensions are discounted.

The percentage of the population that states that it 39
has problems reaching the end of the month is 39.6%,
while the other 60.4% says it manages easily. Those
who stated that they had problems (some or many)
2019 2020 have income per consumption unit of €21,176 on
average. This value increases to €33,302 when they
Source: Living condit ons survey. Department of Stat st cs.
Government of Andorra. indicated that they manage easily (some or many).

The economic recovery seen in Andorra in 2021 took the shape of strong GDP growth in real terms,
8.9% according to advance figures published by the Government, and contrasting with the 11.2%
downturn suffered in 2020. Real GDP is therefore 3.2% lower than in 2019, before the pandemic.
The revival was led by construction and, to a lesser extent, by services and industry, while the
primary sector still saw a slight contraction of 0.6% which, nevertheless, was smaller than in 2020.

By quarters, 2021 started negative, with a drop in GDP in the first quarter due to persistent major
restrictions on movement and a knock-on effect, since the pandemic had still not started in the first
two months of 2020. Unlike the second quarter, when data show a recovery and can be compared
year on year with the months of the first wave of the pandemic, when the restrictions were tougher. The Andorran economy: general developments | V. Activity and demand
The year-on-year growth rate weakened in the third quarter, affected by the appearance of new
variants of COVID-19, but accelerated again in the fourth quarter, fluctuations that were largely
influenced by the waves of pandemic.

In nominal terms, the increase in GDP for 2021 as a whole was 11.2%, compared with the 10.2%
fall recorded in 2020. As a result, total nominal GDP for 2021 was €2,815.4 million, a value that
is very close to that of 2019 (-0.1%), whereas in real terms, the value of GDP (€2,587.9 million in
base year 2010) has increased to a slightly higher level than in 2017.