We believe that Andorra has sufficient fiscal headroom to manage the economic consequences of the COVID-19 pandemic. Risks concerning the magnitude of the economic downturn persist, but we expect the economy to rebound by 5.0% in 2021 and 2.3% in 2022. In our view, Andorra's IMF membership, achieved in October 2020, could anchor the country's economic and budgetary policy and contribute to economic resilience. We are affirming our 'BBB/A-2' long- and short-term ratings on Andorra and maintaining the stable outlook. On Jan. 15, 2021, S&P Global Ratings affirmed its 'BBB/A-2' long- and short-term foreign and local currency sovereign credit ratings on Andorra. The outlook is stable. The stable outlook balances downside risks related to the pandemic with the positive impact
