Page 47 - economic report 2021

4. Prospects

The prospects for economic growth remain positive regarding 2022 as a whole, thanks to the
fact that the pandemic had a limited impact in the first few months of the year and is fading as
the year progresses. The effective control of the pandemic, with high percentages of vaccinated
populations in Europe, and the lifting of almost all restrictions on movement and social interaction
were decisive factors in driving the economic recovery and reactivation of tourism.

GDP data for the first quarter of 2022 indicate very good behaviour in the economy, with 17.3%
growth year on year in real terms (according to the first published estimate, still subject to review),
which predicts faster progress than the 12.1% noted in the fourth quarter of 2021.

In the f rst quarter of 2022, growth By sectors, a notable recovery can be seen in
in Andorran GDP accelerated services (15.2%), favoured by a very positive
to 17.3% year on year. winter season at the ski resorts. Next is the
growth in construction (6%) and industrial
activity (3.9%) which, in both cases, slowed
in comparison with the fourth quarter of 2021. The only sector that stayed negative is
agriculture, with a downturn of 0.5% year on year.

Within services, the subsector of Commerce, hotels and catering, transport, information and
communications presented the steepest growth in GVA (28.9%), accelerating in relation to
the fourth quarter of 2021. The rate of growth was also notable in the subsector of Financial,
property, professional and technical services (9.1%) and the branch of Public administrations,
education, health, social and personal services (9%).
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The growing momentum in Andorran economic Note the strong growth in the number
activity can also be seen in the trend in the of visitors in the f rst half of 2022.
main indicators of activity available for the first
few months of 2022. In particular, the number
of visitors saw a strong cumulative year-on-year increase of 136% in the first half of the year,
which was even stronger in the case of tourists, who spend the night in the country and spend
more. Equally, the number of employees increased 18.2% up to April, growth that was led by

QUARTERLY TREND IN GDP AND QUARTERLY TREND IN ANDORRAN
NON-FINANCIAL GVA IN REAL TERMS Chart 5.8 GVA BY SECTORS Chart 5.9
Interannual variation rate (%) Interannual variation rate (%)

GDP Non-f nancial GVA Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 The Andorran economy: general developments | V. Activity and demand
Source: Department of Stat st cs. Source: Department of Stat st cs.