Andorran Chamber Proposes National Productivity Plan to Boost Competitiveness

The Andorran Chamber of Commerce, Industry and Services has called for a National Plan for Productivity and Competitiveness, led by the government with input from public administrations and businesses, to unify existing initiatives and improve economic output.

Speaking at the launch of the Chamber's Economic Report 2025, president Josep Maria Mas urged bringing all ideas together under one strategy. "We need to put all ideas on the table, always led by the government," he said, advocating a shared public-private effort. Mas stressed making productivity and competitiveness a guiding principle for decisions on regulation, investment, training, infrastructure, taxation and public policies, while regularly identifying barriers to business growth.

The proposal comes as Andorra seeks to shift toward a more intensive growth model. Mas noted that past expansion relied heavily on rising population, workers, firms, activity and visitors—a formula that has driven prosperity but faces limits in a small territory with finite resources. "We cannot stop growth, but we must organise it," he said, pushing for greater value creation through productivity gains and skilled talent.

Labour shortages remain acute, with an average of 1,727 unfilled job offers in 2025 despite rising employment and record-low unemployment. Mas highlighted that companies struggle to cover vacancies and provide housing for workers, a challenge hitting smaller firms hardest and now central to competitiveness. Affordable housing shortages have evolved from a social issue into a key labour and business obstacle.

Head of Government Xavier Espot welcomed the plan, noting some elements are already underway. He cited the Economy Minister's innovation plan and the ongoing European association agreement process—set for signing on 19 October—as major boosts to productivity. "There is already a lot of work done," Espot said, adding that investments in housing, infrastructure, education and health also support economic transformation.

Recent data shows real GDP grew 3.9% in 2025, the highest since 2006 and above rates in Spain, France and the eurozone. Real GDP per capita rose 1.6% to €35,016. In Q2 this year, growth slowed to 2.6% year-on-year from the prior quarter. Forecasts for 2026 point to 2.6% expansion and average inflation of 3.8%, amid solid public finances but risks from inflation and supply constraints.

Mas called for collaboration to address obstacles, including tailored immigration, reduced red tape, market-aligned education via dual training, and tourism upgrades to boost spending and reduce seasonality. He also pushed for pension reforms before the term ends and business briefings on the EU deal.