The economic stability of Andorra confirmed by Fitch Ratings

Recently, Fitch Ratings, the credit rating agency, released its latest evaluation on Andorra's economy, again maintaining its A- rating with a stable outlook. This outcome reflects prudent fiscal management and strong mid-term economic projections for this small yet thriving country.

May 31, 2024

The economic stability of Andorra confirmed by Fitch Ratings
The economic stability of Andorra confirmed by Fitch Ratings
The economic stability of Andorra confirmed by Fitch Ratings

A Glimpse into Key Economic Figures

The analysis performed by Fitch reveals several key points that underline the financial strength of Andorra:

  • A fiscal surplus of 2.4% of GDP at the end of the year 2023.

  • It is expected that this surplus will remain around 1% for both 2024 and 2025.

  • Debt in relation to GDP marked 36.5% in 2023, with projections of a gradual decrease to reach 31.6% by the end of 2026.

  • Real GDP growth reported at 1.4% in 2023, with expectations of an increase to 1.5% for 2024 and a slight reduction to 1.4% in 2025.

Analysis of Fiscal Performance and its Impacts

The results obtained show the fiscal management skills of the Andorran government, maintaining a proper balance between public spending and generated revenues. A conservative strategy that has allowed not only to maintain but also to enhance the country's credit rating against international standards.

Fiscal balance is crucial for investor confidence and facilitates the planning of public policies in the long term without compromising the financial stability of the country.

Implications for the Business Environment and Investors in Andorra

A stable credit rating has direct implications on the economic environment of Andorra, offering greater security for investors and both national and international businesses. This is particularly relevant given the size and openness of the Andorran economy, which significantly depends on external economic factors.

  • Businesses can benefit from a more predictable environment to make long-term plans.

  • Investors have additional assurances about the economic health of the country and less risk in their financial placements.

Future Outlook after Fitch's Assessment

Looking towards the future, Andorra shows a promising outlook. Estimates of continued, although moderate, growth along with fiscal management that continues to show a surplus, put the small Pyrenean country in an enviable economic position compared to other economies of a similar scale.

These elements are essential not only to maintain the current rating but potentially to improve it, provided that current policies are maintained and the international context remains stable.

Conclusions

In conclusion, the persistent A- rating for Andorra by Fitch Ratings reflects an efficient public administration, a steadily growing economy, and exemplary fiscal management. As long as Andorra continues on this path, not only will the confidence in the country's economy be maintained, but the foundations for a sustainable and prosperous future will be further strengthened.

Let us take care of your project in Andorra

Let us take care of your project in Andorra

From the establishment of the company to obtaining residency, including the accounting of your structure, our gestorΓ­a in Andorra takes care of your project 100% within the best timeframes and at the best price.

Let us take care of your project in Andorra

From the establishment of the company to obtaining residency, including the accounting of your structure, our gestorΓ­a in Andorra takes care of your project 100% within the best timeframes and at the best price.

Our 'gestorΓ­a' in Andorra takes care of all the procedures to set up your company and help you settle in Andorra, making your entrepreneurial journey easier with a comprehensive and personalized service.

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Β© Copyright Papers - NRT L719071R

The services provided by Papers are limited to assistance and advice in the areas of company formation, residency management, and accounting services. We don’t offer legal services or act as lawyers. The information provided by Papers is general in nature and shouldn't be taken as personalized legal advice. Customers are encouraged to seek independent legal advice for their specific needs. Papers is not responsible for decisions made by clients based on the information or services provided.

Our 'gestorΓ­a' in Andorra takes care of all the procedures to set up your company and help you settle in Andorra, making your entrepreneurial journey easier with a comprehensive and personalized service.

Β© Copyright Papers - NRT L719071R

The services provided by Papers are limited to assistance and advice in the areas of company formation, residency management, and accounting services. We don’t offer legal services or act as lawyers. The information provided by Papers is general in nature and shouldn't be taken as personalized legal advice. Customers are encouraged to seek independent legal advice for their specific needs. Papers is not responsible for decisions made by clients based on the information or services provided.

Our 'gestorΓ­a' in Andorra takes care of all the procedures to set up your company and help you settle in Andorra, making your entrepreneurial journey easier with a comprehensive and personalized service.

LANGUAGE
English

Β© Copyright Papers - NRT L719071R

The services provided by Papers are limited to assistance and advice in the areas of company formation, residency management, and accounting services. We don’t offer legal services or act as lawyers. The information provided by Papers is general in nature and shouldn't be taken as personalized legal advice. Customers are encouraged to seek independent legal advice for their specific needs. Papers is not responsible for decisions made by clients based on the information or services provided.

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