Page 62 - economic report 2021

Exports of transport material grew Foreign sales of optical, photographic and
67.2% and their percentage of the precision apparatus, the third chapter by
total increased to 24%. volume of exports, increased 17.6% in 2021,
so its share of the total rose to 12.3%. By
chapters, the trend was positive in both the
segment of optical and photographic products (14.3%), the most important chapter in the group,
with 10.1% of total exports, and clocks and watches (34.7%), with a much smaller share of only 1.9%.

Far behind these three groups in the exports ranks by volume are the sectors of paper and
graphic arts, textiles, and pearls, precious stones and metals. The trend in the group of paper and
graphic arts was quite favourable, with export growth of 26.7%. As a result, its share of the total
reached 7.8%. The most important subgroup is paper and cardboard (5.5% of the total), which
saw an increase of 18.6% year on year, and products of the printing or graphic industries (1.6%
of the total), which increased 35.6%. Exports from the textiles sector saw year-on-year growth
of 12.4%, with 6.3% of the total. Within this group are notably the chapter of articles of apparel
and clothing accessories, not knitted or crocheted, with 3.9% of total exports, increasing by 3.2%
since 2020. Finally, the branch of pearls, precious stones and metals saw extraordinary growth of
70.1%, enabling it to reach 6.6% and even overtake the group of textiles.

The other groups represent proportions of less than 5% of total exports. Among these groups
are notably footwear, headwear, umbrellas, with 4.2% of the total and an increase of 33.1%; base
metals, with 3.9% and a positive variation of 53.6%, and chemical products, with 3.8% and an
increase of 56.1%.

60
4. Foreign investment flows

In 2021, Andorra re-emerged as an attractive destination for foreign investment, after the
negative impact of the pandemic on 2020 results. In 2021, 916 investment transactions were
formalised before a notary, more than double those of the previous year, when 433 were
formalised (+111.5% increase). The investment volume associated with these transactions
increased 289.7% against 2020, from €138.4
million in 2020 to €539.5 million, the highest Foreign investment grew 290% in
figure in the available historical series. 2021 and its percentage of GDP
The Andorran economy: general developments | VII. The foreign sector
reached a historic high of 19.2%.
This important increase in foreign investment
in 2021 raised its percentage of Andorran
GDP from 5.5% in 2020 to 19.2% in 2021, the TOTAL VOLUME OF FOREIGN
highest figure in the historical series. INVESTMENT IN RELATION TO GDP Chart 7.10

By geographical origin of formalised investment
in 2021, Spain concentrates 23% of total
investment, followed at a distance by Ireland
with 4.7% of total investment and practically
insignificant in other years. Investment from
France represents 4.2% of the total, compared
with the 16.1% it represented in 2020, and
investment from Andorra, which had been the
main source of foreign investment until 2020,
has fallen to 3.9% of total received investment.
This latter figure relates to investments made Source: Ministry of the Presidency, Economy and Enterprise.
by Andorran businesses in which more than