Andorra Hits Record 23,939 Businesses in 2025 Amid Demographic Decline

Andorra ended 2025 with a record 23,939 active businesses, up 7.22% from 22,326 the previous year and marking the strongest net growth of 1,613 firms in a decade. The Department of Statistics recorded 2,176 new companies alongside 563 closures, for a net growth rate of 6.74%. This reflected a 9.09% business birth rate and 2.35% mortality rate, with new creations rising 17.12% year-on-year to the highest on record. Closures also increased 8.69%, or 45 more than in 2024, yet far trailed openings.

Business resilience held firm, with 89.99% of 2023 startups still active after three years and 97.18% first-year survival for recent cohorts. Among 20,986 firms identified from 2023 data, 13,343—or 63.58%—remained economically active into 2025, while 7,643 had been inactive for at least two years, up 21.26% from the prior year. Sources for these figures include the Companies Register, Trade Register, tax declarations and Qualified Professionals Register. The total stock has expanded steadily since 14,205 in 2016.

These gains stood in sharp relief to demographic trends. Births reached 508, a 1.4% rise from 501 in 2024 but a nearly 40% drop from 828 in 2010 and about 20% below 633 in 2016. The fertility rate stood at 0.83 children per woman—one of Europe's lowest, against the 2.1 replacement level and continental average of 1.34—while the general fertility rate hit 24.65 births per 1,000 women aged 15-49 and the crude birth rate 5.70 per 1,000 inhabitants. Andorran nationals recorded the lowest birth rate at 4.87 per 1,000, compared to 8.03 for other non-traditional nationalities and 6.19 for Spanish nationals.

Of the newborns, 272 were girls and 236 boys, averaging 42.8 monthly and peaking at 51 in January. Andorra la Vella topped parishes with 136 (26.8%), followed by Escaldes-Engordany (94, 18.5%), La Massana (74, 14.6%), Encamp (13%), Sant Julià de Lòria (11.2%), Canillo (8.9%) and Ordino (7.1%). Ordino posted a 44% gain from 2024; Encamp fell 24.1%. Mothers averaged 33 years old, with 70% aged 30-44 (42.1% in 30-34; 28.3% in 35-39); first-time mothers averaged 33.1, above Europe's 31.3 in 2024. Some 56.7% were married at birth.

Deaths rose 3.5% to 386 (187 women, 199 men), peaking at 46 in March, for a rate of 4.33 per 1,000 inhabitants. Average age at death was 77.16 years (80.33 for women, 74.19 for men), with 84.2% of burials local. Natural population growth remained positive at 122, though Andorra la Vella (-13) and Escaldes-Engordany (-5) saw deficits.

Marriages hit a record 474, up 8.2% from 438, driven by civil unions at 429 (up 9.7%), including 20 same-sex pairs—eight male, 12 female, the highest since 2015 legalization and up 42.9%. Religious ceremonies dipped to 45 from 47. Divorces climbed 7.1% to 226; separations fell 23.1% to 10.

The figures underscore economic strength persisting despite demographic headwinds.