Page 91 - economic report 2021

Chart 11.3
BUSINESS ACTIVITY - CONSTRUCTION SECTOR

Balance: Dif erence in opposing responses (posit ve and negat ve) as a percentage.
Source: Chamber of Commerce, Industry and Services of Andorra.

with €2.6 million, and finally, Sant Julià de Lòria, with €2.1 million. In 2021, all parishes increased
real investment at high rates, except Ordino, which was one of the few that had increased it in
2020. The largest increases were in Andorra la Vella (157%) and Escaldes-Engordany (149%), two
of those that saw most contraction in 2020.

Business act vity in construct on As is evident from the results of the Chamber’s
cont nued to improve in 2021, and the business climate survey, construction is still

prospects for 2022 are very posit ve. the most dynamic sector of the Andorran
economy, with a very lively rate of expansion,
clearly higher than in the other branches of 89
activity. Construction companies that took part in the situation survey indicated a very high year-
on-year increase in turnover in 2021, by 29% on average, contrasting with the 17.3% fall seen in
2020, and they also signalled faster growth in job creation in the sector.

In parallel, the analysis of the volume of contracted works in the second half of 2021 also allows
for optimism about future levels of activity. On the one hand, businesses indicated major growth
in contracts in the subsector of residential building, in a context where low interest rates, savings
amassed by households during the pandemic
and uncertainty about the trend in the variable
CONTRACTED WORKS - CONSTRUCTION income markets help to make property
SECTOR (half-year July-December 2021) Chart 11.4 purchases and investment more attractive.
On the other hand, non-residential building
and civil works also show a clear improvement
in the rate of contracts compared with the
three previous half years. However, both non- The Andorran economy: developments in the main sectors | XI. Construction and related industries
residential building and civil works remained
within an unsatisfactory range, especially
public works, in which activity slowed due
to the major impact of the pandemic on the
public accounts.

In most cases, the activity figures achieved
are already higher than the levels observed
Low Normal High in the same period in 2019. However, many
businesses are concerned about the problems
Source: Chamber of Commerce, Industry and Services of Andorra.
of meeting demand due to supply problems for