Page 93 - economic report 2021

communications, which had seen a record
SERVICES SECTOR GVA downturn of 15.9% in 2020, grew 9% in
Variation rate in real terms Chart 12.1 2021, allowing it to partially recover its pre-
pandemic volume of activity. On the other
hand, the subsector of financial, real estate,
professional and technical activities, which
suffered the least in this crisis, saw an increase
of 9.1% in 2021 and only fell 3.9% in 2020.
Finally, the subsector of public administration,
education, health, social and personal services
grew 3.5% in 2021, contrasting with the fall of
-5.5% in 2020.

The impact on the sectors that suffered most
Source: Department of Stat st cs.
from the restrictions imposed to stop the
spread of the virus (commerce, leisure, tourism
Hotels and catering and commerce are and hotels and catering) would have been
the sectors that will take longer to recover even worse without the measures taken by
the pre-pandemic level of act vity. the Government throughout 2020 and 2021.
The most important of these were the ERTO
furlough scheme and direct support to the self-
employed; the guaranteed loan scheme for businesses; the deferment and payment in instalments
of tax; the aid towards rent or mortgage payments of businesses affected by the restrictions,
and the discounts on electricity and telecommunications bills. This aid had different criteria for
application over the two years based on the gravity of the health and economic situation.
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Indeed, according to the responses to the questions included in the business climate survey in the
second half of 2021 (answered in January-February 2022) to find out the level of impact of the
pandemic on Andorran businesses, the time required to return to pre-pandemic levels is better
overall in all branches of activity compared with one year earlier, although major differences can
be seen between sectors.

Hotels businesses continue to show more
pessimistic expectations, since a large number SERVICES SECTOR GVA BY BRANCHES
of businesses in the sector, 45.2% of the total, OF ACTIVITY Chart 12.2
indicate that they will not recover a volume Interannual real variation rate (%)
of turnover like that of before the pandemic
until at least a year has passed. Moreover,
in parallel, only a very small percentage of
hotel businesses, 7.1% of the total, state that
they have managed to obtain similar income
to 2019. In the retail trade, expectations are
also comparatively lower than in industry
and construction, with 33.3% of retailers The Andorran economy: developments in the main sectors | XII. Services
expecting they will need more than a year
to completely recover activity, and 21.9% of
commercial establishments indicating that Commerce, hotels and catering, transport,
informat on and communicat ons
they have already completely returned to Financial, real estate, professional and technical
normal. The most optimistic results can be Public administrat on, educat on, health, social
seen in construction, which has the largest and personal services
proportion of businesses that have managed Source: Department of Stat st cs.
to recover pre-pandemic levels of income or