Andorra's Economy Grows 3.1% in Q3 2025, Outpacing Neighbors

Andorra's economy grew 3.1% in real terms year-on-year during the third quarter of 2025, according to the latest quarterly national accounts from the Statistics Department. This marks a 0.7% increase from the previous quarter and 5.6% nominal growth, outpacing France (0.9%), the EU average (1.6%) and Spain (2.8%).

Services, accounting for over 80% of GDP, led the expansion with 4.5% year-on-year growth. Finance, real estate, professional and technical activities rose 7.7%, while public administration, education, health and social services increased 4.3%. Commerce, hospitality, transport, information and communications saw a modest 0.2% gain. Construction advanced 8%, agriculture 3%, but industry fell 1.6%. Non-financial gross value added expanded 4.4% year-on-year.

The figures build on 2024's performance, when real GDP rose 3.8% to 3,002.3 million euros and nominal GDP climbed 6.7% to 3,736.4 million euros. In purchasing power standards, 2024 GDP reached a semi-final estimate of 4,081.4 million euros, up 8.9% from 2023. Per capita GDP in PPS stood at 46,861 euros (a 6.4% rise) or 67,189 dollars, placing Andorra among the OECD's highest earners, ahead of Spain, France, Italy and the UK.

Nominal GDP per capita hit 42,899 euros in 2024, up from 41,133 euros the prior year. However, real GDP per capita grew only 1.5% to 34,471 euros, highlighting inflation's drag on purchasing power despite aggregate gains.

Business groups have welcomed the data but reiterated concerns over housing shortages limiting recruitment. In the Andorran Chamber of Commerce, Industry and Services' 57th Business Climate Survey, unveiled Monday, president Josep Maria Mas highlighted how rental scarcity fuels worker shortages, hampering expansion. "Without workers, we cannot move forward," he remarked, calling for public-private collaboration and market-linked rent adjustments tied to minimum wage and inflation, rather than controls. Staffing gaps appear in social security data, and firms foresee 2026 growth aligned with neighbors if challenges like high living costs and infrastructure pressures ease. The chamber intends to track conditions and propose rental solutions.