Andorra la VellaThe country’s economy has registered an increase in real terms of 2.6% in the third quarter of the year compared to the same period of the previous year, establishing increasingly stable growth variations. This data is marked by the strong growth that the construction sector is experiencing.
According to the data made public this Thursday by the Department of Statistics. It should be noted that the quarter-on-quarter variation was 1.5% compared to the second quarter of the year.
Regarding the nominal GDP variation, it was 5.9% for this third quarter. Thus, all production sectors continue to experience positive growth rates. Consequently, the Andorran economy continues to achieve positive growth rates. If compared with the economies of the environment, it is above the variation of the French economy (1.2%) and the European Union (1%). On the other hand, it is below the growth of the Spanish economy (3.4%).
It should be noted that the evolution of Andorra’s GDP is strongly marked by the dynamics of services, given that this sector has accounted for around 80% of GDP in recent years. In the third quarter, this area of ​​economic activity experienced a growth of 2.3%. In fact, all sectors show positive values ​​in the third quarter.
The positive trend in construction continues, with 8.1%. Agriculture experiences a positive variation of 0.3%, while industry grows with a variation of 5.8% in this period. Lastly, the dynamics of the services sector experienced an increase of 2.3% for this last period, as mentioned.
To better understand the dynamics of the most important sector of economic activity in the Andorran economy, it is convenient to make a more detailed sectoral breakdown of activity.
According to the current European classification of economic activities, services are subdivided into three subsectors. Firstly, trade, transport, hospitality and information, which accounts for 33% of the Andorran GVA of services.
In second place, financial, real estate, professional and technical activities, with a weight of 44%, and finally, public administrations, education, health, social and personal services, which represent 23% of the GVA of services. Thus, the activities of the first sub-sector trade, hospitality, transport, information and communication have shown a very positive dynamic in recent years in which they have become the main accelerator of the Andorran economy.
Despite suffering, in 2020, a major negative impact following the health crisis, it has shown to be a sector with a high capacity for recovery. For this third quarter of 2024, the subsector experiences a variation of 1.1% compared to the same quarter of the previous year.
Its evolution contrasts with the results of the second subsector, in which financial activities are located, among others. As for the third quarter of 2024, it registers an increase of 3.5%.
Finally, the evolution of the public administrations, education, health, social and personal services subsector is more constant throughout the periods considered, unlike the other two subsectors. For this third quarter of 2024 it experiences a positive variation of 1.7%.