Three-Quarters of Andorran Firms Say Bureaucracy Hinders Competitiveness

Three-quarters of Andorran companies report that bureaucratic procedures hinder their competitiveness, a survey by the Andorran Chamber of Commerce has found.

The chamber's business climate poll, included in its latest economic outlook report, showed 22.7% of respondent firms rating administrative pressures as a "very significant" obstacle. Another 42% viewed regulatory, accounting, and tax obligations as having a moderate impact, while 35.3% reported no effect. Among those affected, half identified fiscal and compliance requirements as the primary issues. On average, firms dedicate the equivalent of six weeks annually to such tasks.

These findings come as Andorra's economy heads for continued growth in 2026, though at a slower pace than the 3.9% GDP rise recorded in 2025. Businesses surveyed by the chamber—which conducted the poll before the Iran conflict erupted—anticipated optimism for the first half of next year. Construction led activity, with services expected to take a stronger role as the main driver.

Across sectors, firms reported around 15% higher turnover in 2025, except for industry, which saw a similar drop.

Recent geopolitical tensions, including the war in Iran and the Strait of Hormuz closure, have worsened the global picture, raising risks of energy shocks, inflation, and higher interest rates. Andorra remains relatively well-placed to weather these, thanks to strong growth momentum, robust domestic demand, and solid corporate results. The chamber expects resilient expansion next year, albeit moderated.

" Andorra maintains solid fundamentals, but it is not immune to external risks, which could curb growth to varying degrees," the chamber stated.