Andorra CCIS Survey Predicts Positive 2025 Growth Led by Construction, Services

The Andorra Chamber of Commerce, Industry and Services (CCIS) 57th Business Climate Survey forecasts a positive economic trajectory for the second half of 2025, led by robust growth in construction and services, though retail trade faces ongoing challenges with a 14.3% year-on-year contraction.

CCIS President Josep Maria Mas stated that the economy continues on an upward path overall, even as certain sectors struggle. He identified construction and services as the key drivers of momentum in the coming period.

Retail trade shows clear fragility, with Statistics Department figures recording a 4.4% drop in salaried employment. The survey confirms the sector's 14.3% annual decline has directly eroded business revenues. Mas attributed this primarily to weaker financial conditions among visitors, who are spending more selectively. He noted a shift in priorities, where money previously allocated to purchases now supports other outlays. "Spending may lean more toward experiences rather than certain products," Mas observed, adding that e-commerce has intensified the pressure by making many goods readily available online with fast home delivery.

In contrast, construction sustains strong expansion exceeding the broader economy, marking nine and a half years of vigorous, uninterrupted growth. Activity centers on the residential market, where demand for new homes remains dynamic despite rising prices. Rehabilitation and reform projects are also gaining traction. While metrics such as value added at basic prices (VAB) and employment creation indicate some slowdown, Mas linked these to supply constraints rather than fading demand.

Services underpin much of the economic vitality, posting positive results and accelerating from 2024 levels. Sector activity built progressively through the semester, with tourism-linked operations showing steady business and sales gains. Non-tourism services, however, hold the greatest potential for further advances.