Andorra Housing Shortage Threatens Economic Growth
Chamber of Commerce warns housing crisis limits worker influx amid moderate GDP growth, urging government action on structural imbalances.
Key Points
- Housing shortage blocks new workers, constraining business operations.
- GDP up 2.2% YoY in Q2 2025, matching neighbours but slower than 2024.
- High costs, infrastructure strain add pressures; rent caps questioned.
- Prudent optimism for 2026 growth if imbalances addressed.
The Andorran Chamber of Commerce, Industry and Services (CCIS) has identified a shortage of housing as a major concern for businesses, warning that it could hinder economic growth by limiting the influx of workers.
Presenting the findings of the 57th Business Climate Survey on Monday, CCIS president Josep Maria Mas noted that while the economy remains on a solid, moderate growth path, internal imbalances are fueling unease among entrepreneurs. Andorra's GDP rose 2.2% year-on-year in the second quarter of 2025, a slower pace than in 2024 but above the 2018-2019 average and in line with neighbouring countries.
Mas directly linked the housing crisis to labour shortages, stating that new workers face significant barriers to finding accommodation, which in turn constrains business operations. "Without workers, we cannot move forward," he said, emphasising the need for joint discussions with the government to find viable solutions, whether through public or private investment.
The survey highlights broader pressures, including high living costs and infrastructure strain, which could slow activity in coming months. Mas described housing as a long-standing structural issue that the CCIS repeatedly raises with the Andorran executive. He expressed caution on measures like rent caps, suggesting solutions might involve balancing rental prices with minimum wage increases and inflation adjustments—areas already under government review.
Labour scarcity, Mas added, will likely drive up wages further, as firms compete for limited talent. The CCIS lacks comprehensive data on social security declarations to fully assess this trend.
Looking to 2026, businesses approach the year with prudent optimism, anticipating continued but decelerating growth. Mas stressed the importance of addressing these imbalances to ensure long-term sustainability, given Andorra's sensitivity to external conditions. The chamber plans to monitor developments and propose specific incentives for the rental market.
Original Sources
This article was aggregated from the following Catalan-language sources: