IMF's Georgieva Praises Andorra Reforms in First Visit Since 2020 Accession

**IMF Managing Director Kristalina Georgieva visited Andorra on Friday for her first official trip to the Principat since the country's accession to the organisation as its 190th member on 16 October 2020.**

Georgieva met with Head of Government Xavier Espot and discussed structural challenges, including housing, as well as the evolution of Andorra's economy. The IMF leader praised the Principat's reforms over recent years, noting solid economic indicators despite global headwinds such as geopolitical tensions, inflation and slowing growth elsewhere.

She highlighted 3.9% GDP growth in 2025—above most European countries—declining inflation trends and a labour market close to full employment. "This reflects strong institutions and reforms focused not only on immediate results but also future challenges," Georgieva said. She identified areas for ongoing collaboration, including climate change, population ageing and improving statistical capacities.

Georgieva strongly endorsed Andorra's association agreement with the European Union, describing it as a "natural step" after recent reforms. Access to the EU single market would provide key opportunities for economic diversification, reduce reliance on traditional sectors and strengthen the country's voice in decisions affecting it. "Small economies need to open to the world for new growth sources," she stated, adding that lacking such an agreement would be negative while pursuing it offers more future opportunities. She commended Andorra's negotiating skills with Brussels for preserving its specificities.

Espot linked IMF membership to broader international opening, including the EU deal. He called the accession "decisive," enabling structural reforms, boosting international credibility and providing independent policy assessments. Economic results validate this path: public debt fell to 29.4% of GDP, and 2025 closed with a 2.5% budget surplus. Espot noted the IMF views positively allocating part of the surplus to expand affordable public housing stock.

The visit included working sessions with Economy and Finance ministers Conxita Marsol and Ramon Lladós, meetings with the Andorran Financial Authority and discussions with key economic agents. Georgieva's delegation featured Executive Director Jeroen Clicq, Deputy Department of Studies head Helge Berger and Andorra mission chief Jeff Danforth. She presented a symbolic gift delayed from 2020 due to pandemic restrictions.

The EU agreement awaits a firm calendar in Brussels; it appeared on the Coreper agenda last Wednesday for potential decisions on signature and conclusion, plus European Parliament consent, but was deferred.