Andorra's consistent record of fiscal prudence supports our view that it will resume budgetary consolidation in 2022, after posting a modest general government deficit estimated at 1.5% of GDP in 2021. The resilience of the country's budgetary position over the past two years mitigates the downside risks relating to the evolution of the pandemic. We do not expect Andorra's economy to return to its pre-pandemic size until 2023, partly because rising infection rates across Europe could restrict the ski season in 2021-2022. We revised our outlook on Andorra to positive from stable and affirmed our 'BBB/A-2' long- and short-term ratings. On Jan. 14, 2022, S&P Global Ratings revised its outlook on Andorra's long-term sovereign credit rating to positive from stable.
