Andorra

Steady progress on IMF membership amid COVID-19-linked GDP contraction. Despite slightly less negative GDP output for first-quarter 2020 than anticipated, we expect Andorra's economy to contract by 10.8% in real terms this year. Andorra's economy remains highly concentrated on financial services, tourism, and commerce, which exacerbates the adverse effects of the COVID-19 pandemic. Andorra has made landmark progress in its application for IMF membership. Fiscal headroom to manage the economic consequences of the pandemic, but limited visibility on the government's external position. Andorra has entered the economic downturn from a robust fiscal and debt position. Its parliament has given the government room to implement its economic stimulus measures by approving a rise in general government debt to above 40%, from

...Institutional and economic profile Flexibility and performance profile Steady progress on IMF membership amid COVID-19-linked GDP contraction. + Despite slightly less negative GDP output for first-quarter 2020 than anticipated, we expect Andorra's economy to contract by 10.8% in real terms this year. + Andorra's economy remains highly concentrated on financial services, tourism, and commerce, which exacerbates the adverse effects of the COVID-19 pandemic. + Andorra has made landmark progress in its application for IMF membership. Fiscal headroom to manage the economic consequences of the pandemic, but limited visibility on the government's external position. + Andorra has entered the economic downturn from a robust fiscal and debt position. + Its parliament has given the government room to implement its economic stimulus measures by approving a rise in general government debt to above 40%, from 35% as of end-2019. + Our assessment of high contingent liabilities from Andorra's large financial...

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