## 1. Fiscal Position and Population Projections

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### Fiscal position: current status and outlook
- General government’s overall balance has averaged a surplus of more than 2 percent of GDP over the past 10 years.
- Public debt is projected to decline to 30 percent of GDP over the medium term.
- After precautionary borrowing during the pandemic, Andorra has accumulated foreign reserves.

### Demographic trends: fertility, life expectancy, and population structure
- Life expectancy in Andorra reached 84.6 years in 2023.
- Fertility rate declined from 1.41 births per woman in 2010 to 0.79 in 2023; replacement rate is 2.1.
- From 2010 to 2024:
  - Share of population aged 65 or older increased from 11 percent to 15 percent.
  - Proportion of children (0–14 years) decreased from 16 percent to 11 percent.
- UN projections cited: share of population aged 65 and older will increase from 14 percent in 2020 to 44 percent in 2070; total population is expected to shrink by 13 percent.
- Andorra (2022) life expectancy at birth: 83.5 years.
- Andorra (2022) fertility rate: 0.94 births per woman versus EU average of 1.5 in 2022.

### Migration and working-age population dynamics
- Working-age population (ages 20 to 64) has remained around 68 percent of total population over the past decade.
- Between 2016 and 2023, Andorra’s population increased by 12,000 people; net migration accounted for 89 percent (10,700 people) of this increase.
- Of net migrants (2016–2023), 92 percent (9,800 people) were of working age.
- Net migration rates:
  - 2022: 2.4 percent (as percentage of population in t-1).
  - 2023: 4.2 percent.

### Pension system: structure, fiscal implications, and projections
- Structure and institutions:
  - Pay-as-you-go pension system; most recent reform (2015) set retirement age at 65 and minimum 15 years of contributions.
  - Payouts based on a points system with an implicit assumption of 9.6 years of payouts after retirement.
  - Pillar 1: mandatory for all employees. Pillar 2: occupational pensions mandatory for some government employees and voluntary in private sector.
  - CASS (Caixa Andorrana de Seguretat Social): collects and distributes pension payments.
  - FRJ (Fons de Reserva de Jubilacio): retirement reserve fund that accumulates and manages surpluses.
- FRJ assets as of end-2024: €1.8 billion (about 50 percent of GDP); assets invested in a mix of equities and high-quality credit instruments.
- Benefit and contribution ratios:
  - Benefit payout ratio: around 44 percent.
  - Pension contribution ratio: 12 percent of salary.
- Pension conversion assumption (9.6 years) does not reflect current life expectancy trends.
- Projection methodology and outcomes:
  - Actuarial pension projections use IMF macroeconomic forecasts: long-term growth of 1.5 percent and inflation of 1.7 percent; projections through 2050.
  - Under a no-policy-change scenario:
    - Pension system expected to run deficits starting in 2027.
    - FRJ reserve fund projected to be depleted by 2043.
  - The shift in estimated deficit and depletion years relative to 2022 estimates reflects recent increase in working-age population, but overall conclusion unchanged: without reforms the pension system is unsustainable.

### Pension reform options and parameters (CASS 2022 proposals)
- Possible reforms and modeled parameters:
  - Increase contribution rate from 12 to 16 percent of gross salary.
  - Increase conversion factor from 9.6 to 17 in 25 years.
  - Increase retirement age from 65 to 67 in 8 years.
  - Combined effect (CASS proposal): first system deficit appears in 2039, and reserves depletion starts only from 2040.
- Additional reform approaches:
  - Link retirement age to life expectancy (examples cited: Denmark, Italy, Finland).
  - Develop additional pension pillars:
    - Pillar 1: current social security system (main reliance).
    - Pillar 2: employer-sponsored pension plans (underdeveloped).
    - Pillar 3: voluntary private pension savings (does not exist).

### Pension expenditures: current level and projected rise
- Public pension expenditures in 2022: 4.7 percent of GDP.
- Under the no-policy-change scenario, pension expenditures projected to reach about 11.3 percent of GDP by 2050.

### Healthcare system: structure, coverage, and efficiency
- SAAS (Servei Andorrà d'Atenció Sanitària) administers public healthcare; SAAS created in 1986 and manages primary care centers, specialized clinics, and the country's sole hospital.
- Public healthcare primarily funded by CASS through mandatory contributions from employees, employers, and government; government contribution exists for those not working or retired.
- Universal coverage: all legal residents and employees who contributed to CASS are eligible.
- Private healthcare supplements services not fully included in CASS or elective procedures.
- Cross-border agreements with France and Spain provide mutual medical coverage and access to specialized care abroad.
- Preventive and geriatric care: SAAS runs vaccination, screening, health education, lifestyle promotion, occupational health measures, and specialized programs for seniors.
- System efficiency drivers:
  - Agreements with neighboring countries to avoid high costs of domestic specialized services.
  - Small size and organized system; pandemic response inoculated 100 percent of residents.
  - Active inward migration by seasonal workers (younger, lower healthcare consumption) helps keep expenditures low.
  - Authorities use cost-benefit analysis to determine domestic provision of services.
- Public health expenditures in 2022: around 5.6 percent of GDP.

### Healthcare spending pressures from aging and projections
- Elderly population shares and projections:
  - 2022: people aged 65 and older accounted for 15 percent of total population.
  - By 2050 (UN projections): share aged 65+ projected to rise to 37 percent.
  - Share aged 80+ projected to increase from 4 percent in 2022 to 13 percent in 2050.
- CASS analysis (financial year 2023): healthcare expenditures per capita increase with age, reaching a peak of above €5,000 for individuals older than 80; this age group accounts for three times their share of the population in healthcare spending.
- Two projection methods and results (no-policy-change):
  - Method 1 (regression from 2024 EC Ageing Report sample):
    - Estimated relationship: y = 0.0551x -0.6386
    - R² = 0.3992
    - Projection: healthcare expenditures in Andorra will be 7.8 percent of GDP in 2050, 2.2 percentage points of GDP higher compared to 2022.
  - Method 2 (apply CASS per capita health expenditures by 10-year age intervals to UN 2050 population structure):
    - Projection: healthcare expenditures will be 7.6 percent of GDP in 2050, 2 percentage points of GDP higher compared to 2022.
- Uncertainty caveat: estimates are subject to uncertainty of population projections, assumptions made, and data limitations; similarity of methods points to an increase in healthcare expenditures under the no-policy-change scenario.
- Comparative finding: Andorra is projected to experience the largest increase in healthcare expenditures in the sample from the 2024 Ageing Report and is expected to shift from below the EU average in 2022 to above the EU average by 2050.

### Fiscal impact and urgency
- Combined fiscal impact:
  - Pension and healthcare expenditures in Andorra are projected to increase by 8.8 percentage points of GDP by 2050 compared to 2022.
- Consequences:
  - The projected increase will place considerable strain on public finances, requiring adjustments in other expenditures, raising revenues, or an increase in public debt.
  - Inaction is not considered viable for Andorra, given its vulnerability as a microstate.

### Healthcare reform recommendations
- Priorities under the National Health Pact (2024) and related proposals:
  - Improve service delivery efficiency and control costs:
    - Transition to value-based care (payments based on patient outcomes rather than services rendered).
    - Make pricing information for healthcare services easily accessible to consumers.
    - Promote digitalization in planning, delivery, and follow-up of care.
    - Adopt payment models based on processes (e.g., pregnancy care) rather than individual visits.
    - Implement digital initiatives like consumer apps and healthcare dashboards.
    - Given a single hospital in Andorra, controlling costs in public facilities is crucial.
    - Plan in advance for attracting specialized medical professionals and infrastructure investments as elderly-oriented services expand.
  - Promote preventive care and healthy aging:
    - Early identification and prevention of diseases to reduce healthcare expenditures.
    - Emphasize programs for healthy aging, especially to contain costs among those over 80.
    - Expand accessibility of existing preventive care and regular checkups.
  - Increase contributions and revenues:
    - Current funding: employee and employer contributions of 3 percent and 7 percent of salary, respectively.
    - Contributions may need to increase to reflect growing expenditures.
    - Boost revenues by offering a broader range of services to those able to pay, such as passive residents.
    - Aging will shift demand for services, creating opportunities to offer new services and generate additional revenue.

### Migration, diversification, and broader economic strategies
- Migration policy:
  - Inward migration has helped maintain the working-age population ratio.
  - Given long-standing negative fertility, migration will remain crucial to slowing population aging.
  - Recommended migration policies:
    - Attract and retain talent, particularly highly skilled labor.
    - Create a business-friendly environment to support establishment and growth of new businesses, especially higher value-added sectors.
- Diversification and productivity:
  - Peer country lessons (Malta example): policy credibility, enabling business environment, targeted structural reforms, and specialization in high value-added services supported productivity and income growth.
  - Andorra has large excess savings and a high current account surplus that can be unlocked to support investment-led growth.
  - Total investments are estimated to be of around 8 percent of GDP, with private investments counting for 3 percent of GDP.
  - Policy actions recommended:
    - Ease the business environment (including use of common digital platforms).
    - Address housing availability issues.
    - Upskill the labor force.
    - Attract talents, especially in sectors such as ICT.
    - Advance “innovation area” plans to connect new innovative firms with the education system and public investments.

### Conclusions and policy direction
- Aging is expected to put significant pressure on Andorra’s fiscal position, particularly through rising spending on pensions and healthcare.
- Comprehensive pension and healthcare reforms are needed to avoid straining public finances.
- A comprehensive analysis and preparation, including a proactive immigration policy, will be vital to prepare the economy for an aging population.
- Authorities must plan and adjust across sectors (long-term care, labor markets, infrastructure, and service delivery) to maintain macroeconomic stability.

*Prepared by Aidyn Bibolov — IMF staff summary of "Fiscal Implications of Aging in Andorra: Pension and Healthcare System Reforms" (excerpt from 1andea2025002-print-pdf).*

### 1. Fiscal Position and Population Projections ________________________________________ 3

### 1. Fiscal Position and Population Projections

### Fiscal Position: current status and outlook
- General government’s overall balance has averaged a surplus of more than 2 percent of GDP over the past 10 years.
- Public debt is projected to decline to 30 percent of GDP over the medium term.
- After precautionary borrowing during the pandemic, Andorra has accumulated foreign reserves.
- Figure 1 (in source) shows General Government Fiscal Balance and Debt, 2014-23 (percent of GDP).

### Demographic trends: fertility, life expectancy, and population structure
- Life expectancy in Andorra reached 84.6 years in 2023.
- Fertility rate declined from 1.41 births per woman in 2010 to 0.79 in 2023; replacement rate is 2.1.
- From 2010 to 2024:
  - Share of population aged 65 or older increased from 11 percent to 15 percent.
  - Proportion of children (0–14 years) decreased from 16 percent to 11 percent.
- UN projections cited: share of population aged 65 and older will increase from 14 percent in 2020 to 44 percent in 2070; total population is expected to shrink by 13 percent.
- Andorra (2022) life expectancy at birth: 83.5 years (highest in sample), nearly 3 years longer than the EU average.
- Andorra (2022) fertility rate: 0.94 births per woman versus EU average of 1.5 in 2022.

### Migration and working-age population dynamics
- Working-age population (ages 20 to 64) has remained around 68 percent of total population over the past decade.
- Between 2016 and 2023, Andorra’s population increased by 12,000 people; net migration accounted for 89 percent (10,700 people) of this increase.
- Of net migrants (2016–2023), 92 percent (9,800 people) were of working age.
- Net migration rates:
  - 2022: 2.4 percent (as percentage of population in t-1).
  - 2023: 4.2 percent.
- Figure 4 (in source) presents Population Change and Migration (persons) and Net Migration, 2022 (as % of population in t-1).

### Pension system: structure and fiscal implications
- Pension system operates on a pay-as-you-go basis; most recent reform (2015) set retirement age at 65 and minimum 15 years of contributions.
- Payouts are based on a points system with an implicit assumption of 9.6 years of payouts after retirement.
- Pillar 1: mandatory for all employees. Pillar 2: occupational pensions mandatory for some government employees and voluntary in private sector.
- Institutions:
  - CASS (Caixa Andorrana de Seguretat Social): collects and distributes pension payments.
  - FRJ (Fons de Reserva de Jubilacio): retirement reserve fund that accumulates and manages surpluses.
- FRJ assets as of end-2024: €1.8 billion (about 50 percent of GDP); assets invested in a mix of equities and high-quality credit instruments.
- Benefit and contribution ratios:
  - Benefit payout ratio: around 44 percent (comparable to EU average).
  - Pension contribution ratio: 12 percent of salary (lower than typical 16 percent to 28 percent in comparator countries).
- Pension conversion assumption (9.6 years) does not reflect current life expectancy trends.

### Pension system projections and sustainability
- Methodology: actuarial pension projections with IMF macroeconomic forecasts for long-term growth of 1.5 percent and inflation of 1.7 percent; projections through 2050.
- Under a no-policy-change scenario:
  - Pension system expected to run deficits starting in 2027.
  - FRJ reserve fund projected to be depleted by 2043.
- The shift in estimated deficit and depletion years relative to 2022 estimates reflects recent increase in working-age population, but overall conclusion unchanged: without reforms the pension system is unsustainable.
- Figure 6 (in source) displays Pension System Income and Expenses Projections (Millions of EUR) and Retirement Reserve Fund Projections (Percent of GDP).

### Pension expenditures: current level and projected rise
- Public pension expenditures in 2022: 4.7 percent of GDP (lower than most EU countries).
- Under the no-policy-change scenario, pension expenditures projected to reach about 11.3 percent of GDP by 2050.
- Figure 7 (in source) shows Public Pensions Expenditure, 2022 (percent of GDP) and projected Public Pensions Expenditure, 2050 versus 2022.

### Healthcare system: structure, coverage, and efficiency
- Public healthcare administered by SAAS (Servei Andorrà d'Atenció Sanitària); SAAS created in 1986 and manages public healthcare resources, primary care centers, specialized clinics, and the country's sole hospital.
- Public healthcare primarily funded by CASS through mandatory contributions from employees, employers, and government; government contribution exists for those not working or retired.
- Universal coverage: all legal residents and employees who contributed to CASS are eligible.
- Private healthcare exists and covers services not fully included in CASS or elective procedures (dentistry, dermatology, cosmetic surgery).
- Cross-border agreements with France and Spain provide mutual medical coverage and allow Andorrans to access specialized care abroad; specialists from abroad periodically visit Andorra.
- Preventive and geriatric care: SAAS runs vaccination, screening, health education, lifestyle promotion, occupational health measures, and specialized programs for seniors.
- System efficiency drivers:
  - Agreements with neighboring countries to avoid high costs of domestic specialized services.
  - Small size and organized system; pandemic response inoculated 100 percent of residents.
  - Active inward migration by seasonal workers (younger, lower healthcare consumption) helps keep expenditures low.
  - Authorities use cost-benefit analysis to determine domestic provision of services.
- Public health expenditures in 2022: around 5.6 percent of GDP (lower than EU average).

### Healthcare spending pressures from aging
- Elderly population shares and projections:
  - 2022: people aged 65 and older accounted for 15 percent of total population.
  - By 2050 (UN projections): share aged 65+ projected to rise to 37 percent (highest among peers).
  - Share aged 80+ projected to increase from 4 percent in 2022 to 13 percent in 2050.
- CASS analysis (financial year 2023): healthcare expenditures per capita increase with age, reaching a peak of above €5,000 for individuals older than 80; this age group accounts for three times their share of the population in healthcare spending.
- Rising share of the 80+ population, coupled with high life expectancy, will drive higher healthcare expenditures.

### Conclusions and policy direction (as presented)
- Aging is expected to put significant pressure on Andorra’s fiscal position, particularly through rising spending on pensions and healthcare.
- Comprehensive pension and healthcare reforms are needed to avoid straining public finances.
- A comprehensive analysis and preparation, including a proactive immigration policy, will be vital to prepare the economy for an aging population.
- The paper organizes analysis into recent population/demographic trends, pension system impacts, healthcare expenditure estimates, and concludes with policy recommendations.

*Prepared by Aidyn Bibolov — IMF staff summary of "Fiscal Implications of Aging in Andorra: Pension and Healthcare System Reforms"*

### 22.       Without reforms, healthcare expenditures are projected to significantly increase. We

### 22. Without reforms, healthcare expenditures are projected to significantly increase.

### Projection methods and results
- Two methods used to estimate the impact of aging on healthcare spending in Andorra:
  - Method 1: Estimate relationship between changes in the old age dependency ratio and healthcare expenditures using projections from the sample of countries in the 2024 EC Ageing Report.
    - Estimated relationship: y = 0.0551x -0.6386
    - R² = 0.3992
    - Projection: healthcare expenditures in Andorra will be 7.8 percent of GDP in 2050, 2.2 percentage points of GDP higher compared to 2022.
  - Method 2: Apply per capita health expenditures for the 10-year age intervals in Andorra (calculated by CASS in 2023) to the 2050 population structure based on UN projections.
    - Projection: healthcare expenditures will be 7.6 percent of GDP in 2050, 2 percentage points of GDP higher compared to 2022.
- Note on uncertainty:
  - Estimates are subject to uncertainty of population projections, assumptions made, and data limitations.
  - The similarity of results from alternative methods points to an increase in healthcare expenditures under the no-policy-change scenario.

### Comparative position and trends
- According to the 2024 Ageing Report:
  - All but one EU country are expected to see healthcare expenditures rise between 2022 and 2050.
  - Andorra is projected to experience the largest increase in the sample.
  - As a result, Andorra's healthcare expenditures are expected to shift from being below the EU average in 2022 to above the EU average by 2050.
- Visual/empirical markers included in the source:
  - Share of Elderly Population, 2022 and 2050 (percent of total population)
  - Healthcare Spending per Capita, 2023 (euro)
  - Share of Population and Spending by Age Group, 2023 (percent of total population)
  - Healthcare Expenses Change vs Dependency Ratio Change, 2022-70 (percent and percent of GDP)

### Fiscal impact and urgency
- Aging fiscal impact summary:
  - "Aging will have a significant fiscal impact in Andorra."
  - Pension and healthcare expenditures in Andorra are projected to increase by 8.8 percentage points of GDP by 2050 compared to 2022.
  - This increase will place considerable strain on public finances, requiring adjustments in other expenditures, raising revenues, or an increase in public debt.
  - Inaction is not considered viable for Andorra, given its vulnerability as a microstate.

### Pension reform recommendations and parameters
- Pension reform is long overdue; CASS work and proposals:
  - CASS commissioned actuarial studies and published a position paper in 2022 highlighting unsustainability.
  - Possible reform options:
    - Adjust pension system parameters (CASS 2022 proposal):
      - Increase contribution rate from 12 to 16 percent of gross salary.
      - Increase conversion factor from 9.6 to 17 in 25 years.
      - Increase retirement age from 65 to 67 in 8 years.
      - Combined effect: first system deficit appears in 2039, and reserves depletion starts only from 2040.
    - Link retirement age to life expectancy to make the system responsive to demographic changes (examples cited: Denmark, Italy, Finland).
    - Develop additional pension pillars:
      - Pillar 1: current social security system (main reliance).
      - Pillar 2: employer-sponsored pension plans (underdeveloped).
      - Pillar 3: voluntary private pension savings (does not exist).
      - Expanding pillars would enhance sustainability and sufficiency.

### Healthcare reform recommendations
- Healthcare reform priorities (National Health Pact agreed in 2024 lays the foundation):
  - Improve service delivery efficiency and control costs:
    - Transition to value-based care (payments based on patient outcomes rather than services rendered).
    - Make pricing information for healthcare services easily accessible to consumers.
    - Promote digitalization in planning, delivery, and follow-up of care.
    - Adopt payment models based on processes (e.g., pregnancy care) rather than individual visits.
    - Implement digital initiatives like consumer apps and healthcare dashboards.
    - Given a single hospital in Andorra, controlling costs in public facilities is crucial.
    - Plan in advance for attracting specialized medical professionals and infrastructure investments as elderly-oriented services expand.
  - Promote preventive care and healthy aging:
    - Early identification and prevention of diseases to reduce healthcare expenditures.
    - Emphasize programs for healthy aging, especially to contain costs among those over 80.
    - Andorra already has an extensive preventive care system with regular checkups; expanding accessibility can increase impact.
  - Increase contributions and revenues:
    - Current funding: employee and employer contributions of 3 percent and 7 percent of salary, respectively.
    - Contributions may need to increase to reflect growing expenditures.
    - Boost revenues by offering a broader range of services to those able to pay, such as passive residents.
    - Aging will shift demand for services, creating opportunities to offer new services and generate additional revenue.

### Migration and broader strategies
- Active migration policies:
  - Inward migration has helped maintain the working-age population ratio in Andorra.
  - Given long-standing negative fertility, migration will remain crucial to slowing population aging.
  - Recommended policies:
    - Attract and retain talent, particularly highly skilled labor.
    - Create a business-friendly environment to support establishment and growth of new businesses, especially higher value-added sectors.
    - Expand size of goods and labor markets—potentially through an EU association agreement—to aid diversification and increase tax revenues.
- Comprehensive planning:
  - Aging will affect demand for long-term care and services tailored to the elderly, and shift demand for goods and services (e.g., increased demand for elderly care professionals).
  - Authorities must plan and adjust across sectors to maintain macroeconomic stability.

### Key numeric facts and timelines (exact figures preserved)
- Healthcare expenditure projections:
  - 7.8 percent of GDP in 2050 (Method 1), 2.2 percentage points of GDP higher compared to 2022.
  - 7.6 percent of GDP in 2050 (Method 2), 2 percentage points of GDP higher compared to 2022.
- Regression used: y = 0.0551x -0.6386; R² = 0.3992.
- Pension reform parameters (CASS 2022 proposal):
  - Increase contribution rate from 12 to 16 percent of gross salary.
  - Increase conversion factor from 9.6 to 17 in 25 years.
  - Increase retirement age from 65 to 67 in 8 years.
  - First system deficit appears in 2039; reserves depletion starts only from 2040.
- Fiscal impact:
  - Pension and healthcare expenditures projected to increase by 8.8 percentage points of GDP by 2050 compared to 2022.
- Current healthcare funding contributions:
  - Employee contribution: 3 percent of salary.
  - Employer contribution: 7 percent of salary.

*Source: Excerpt from 1andea2025002-print-pdf (IMF staff calculations; Andorran authorities; 2024 EC Ageing Report; CASS analyses).*

### 8. Comprehensive economic agendas drove income performance in peer countries. This

### 8. Comprehensive economic agendas drove income performance in peer countries. This

### Drivers in peer countries (Malta example)
- Policy credibility and an enabling business environment allowed development of specialized high value-added sectors with large contributions to economic growth, supported by investment and productivity gains.
- Malta pivoted towards a high-quality services-driven economy; tourism-related sectors, while still important, decreased their economic contribution.
- Large inflow of foreign workers has been directed to support IT-based services and not limited to tourism.
- With limited room for manufacturing, specialization was key, including the fast expansion of the online gaming industry.
- Comprehensive structural reforms supported these shifts; examples include:
  - Smart Specialization Strategy for the period 2021-2027, with active private sector involvement and priority areas including digital economy and climate change.
  - Digital Decade Strategic Roadmap 2023 – 2030.
  - Malta Vision 2050.
  - Malta Tourism Strategy 2021– 2030.
- Policy prioritization focused on a productivity-driven growth strategy emphasizing digital innovation, infrastructure, education, healthcare, sustainability, and quality job creation.

### Conclusions for Andorra: Diversification, Productivity and GDP Per Capita
- Income in Andorra has stagnated in the last 50 years, with an economy dominated by lower value-added sectors.
- Construction and tourism sectors have brought a significant contribution to growth in Andorra; the financial sector remains important.
- Peer experiences show the importance of a comprehensive strategy to enable development of higher value-added sectors, often with a high degree of specialization consistent with country size.
- Andorra has important advantages to support medium-term income prospects, including large excess savings.
- The policy framework lends credibility to the business environment.
- Large savings, reflected in the very high current account surplus, can be unlocked to support growth going forward, reversing the limited contribution of investment to growth today.

### Key statistics and fiscal/investment context
- Total investments are estimated to be of around 8 percent of GDP, with private investments counting for 3 percent of GDP.
- For now, only limited resources have been directed from the 2025 budget to new grants for business in innovation and R&D (they count for approximately 0.5 million EUR).

### Policy recommendations and actions going forward
- Remove existing bottlenecks through multiple measures:
  - Ease the business environment (including use of common digital platforms).
  - Address housing availability issues.
  - Upskill the labor force.
  - Attract talents, especially in sectors such as ICT.
- Expand opportunities through diversification and full access to the single market, potentially unlocked with the EU Association Agreement if adopted; this could act as a trigger for reforms, FDI inflows, and closer cross-country collaborations on research and innovation via EU programs.
- Support both innovative and traditional sectors to move toward higher-end market segments and specialize in new areas organically (example transitions: tourism → health tourism → medical products).
- Leverage advantages associated with being a microstate and Andorra’s consensus-driven, collegial decision-making practice when shaping strategies and involving stakeholders.
- Advance “innovation area” plans to connect possible new innovative firms with the education system and public investments (project described as still very much at an initial stage).

*Source: PRINCIPALITY OF ANDORRA — INTERNATIONAL MONETARY FUND*

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_Source: https://www.imf.org/-/media/files/publications/cr/2025/english/1andea2025002-print-pdf.pdf_