Selected Issues Papers

Andorra has the highest life expectancy and the lowest fertility rate in Europe, resulting in one of the fastest-aging populations on the continent. This study assesses the long-term fiscal implications of demographic change for Andorra’s pension and healthcare systems. Without reform, public pension and healthcare expenditures are expected to rise significantly by 2050. Comprehensive pension and healthcare reforms, alongside proactive immigration policies, are essential to mitigate demographic pressures and safeguard Andorra’s macroeconomic stability over the long term.