Page 43 - economic report 2021

BUSINESSES’ OPINIONS ABOUT The strong momentum in business activity
ECONOMIC DEVELOPMENTS IN 2021 Table 5.2 in the construction sector is reflected in high
growth in other indicators, such as approved
square metres (168.2%), imports of building
Results of the situation survey in industry materials (48.7%), authorised surface area
2021 COMPARED WITH 2020 (as % of businesses) (50.8%), property transactions (47.8%), electricity
consumption (12.5%) and public investment
Turnover Higher 42
Same 46 expenditure (6.2%). Altogether, this favoured
Lower 12 job creation in construction (6.9% increase
Average variat on (%) 10.9
in employees compared with 4.3% in 2020),
Volume of investment Higher 25 and accelerated apartment price growth,
Same 66 encouraged by the lively demand for property.
Lower 9
Average variat on (%) 7.1
The results of the Chamber’s surveys
Number of employees More 22
Same 70 corroborate the good business performance
Less 8 in the construction sector, with a very positive
evaluation of the business situation, highly
Prospects for 2022 (as % of businesses)
focussed on the housing segment. Moreover,
Trend in turnover Upward 46 businesses have stated that the volume of
Stable 50 works, both executed and contracted, has
Downward 4
improved significantly. Altogether, this has
Trend in volume of Upward 34 led to a notable increase in sales (29%) and
investment Stable 58
Downward 8 investment (23.8%) figures.

Results of situation survey in construction Industry also made a posit ve 41

2021 COMPARED WITH 2020 (as % of businesses) contribut on to economic growth
in 2021, unlike GVA in the primary
Turnover Higher 55
Same 45 sector, which fell slightly.
Lower 0
Average variat on (%) 29.0
As for manufacturing and industry, the trend
Volume of investment Higher 39 in 2021 was also favourable, if we look at
Same 58
Lower 3 the real GVA data, which show growth of
Average variat on (%) 23.8 6.4% compared with the downturn of 10.9%

Number of employees More 32 recorded in 2020. Despite increasing activity,
Same 65 the sector reduced the number of employees
Less 3 3.3%, contrasting with the increase in the
previous year (5.2%). Note that industrial
Prospects for 2022 (as % of businesses)
activity consists of basic industry, on the
Trend in turnover Upward 56 one hand, especially energy production and
Stable 44
Downward 0 distribution, and on the other, manufacturing,
which is the most important activity – 74%
Trend in volume of Upward 33
investment Stable 67 of the GVA from industrial activities. Overall,
Downward 0 industry represents a little more than 5% of The Andorran economy: general developments | V. Activity and demand
total GVA, meaning that any trend has a limited
Source: Chamber of Commerce, Industry and Services of Andorra. effect on the economy as a whole.

The replies to the Chamber’s surveys from
businesses also depict the improving industrial climate and business activity. Specifically, the
annual average confidence indicator increased and regained positive levels, after it plunged to
an eight-year low in 2020. Evaluations of production levels revived and the level of capacity
utilisation increased, although this is still below pre-pandemic levels. Within this context,