Principality of Andorra: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Principality of Andorra

IMF Staff Country Reports, June 11, 2021

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Canonical URL: Principality of Andorra: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Principality of Andorra

Andorra became the IMF’s newest member in October 2020 and participated in its first Article IV consultation with a commitment to further enhance transparency.
Publication date: June 11, 2021.
The authorities managed the COVID-19 pandemic with universal testing and expanded hospital capacity, keeping fatality rates very low despite high case-loads.
The testing strategy enabled more targeted internal restrictions than in neighboring countries.
Emergency fiscal measures stabilized real incomes and supported firms.

Tourism and banking-related services dominate economic activity in the euroized economy.
The country enjoys long-standing political stability and a good track-record of fiscal discipline.
Additional noted strengths: a gender-balanced work force and internationally competitive ski resorts.

Key measures: universal testing; expanded hospital capacity.
Outcomes: very low fatality rates despite high case-loads; ability to implement more targeted internal restrictions compared with neighboring countries.
Economic support: emergency fiscal measures that stabilized real incomes and supported firms.

Subjects: COVID-19, Expenditure, Financial institutions, Health, Income, International organization, Monetary policy, National accounts, Nonperforming loans, Public debt, Public investment spending.
Keywords: AFA team, Andorran authorities, anti-money laundering framework, authorities' desire, COVID-19, Europe, general government debt, general management, Income, money market rate, mountain ecosystem, Nonperforming loans, Public investment spending.