Andorra's State Debt to Fall Below 30% of GDP by 2025

**Andorra la Vella** – Andorra's state debt has continued to fall since the Covid-19 pandemic, with projections showing it will drop below 30% of GDP by the end of 2025, Finance Minister Ramon Lladós told the Andorran Family Business Association during a recent meeting.

Lladós credited the decline to strict budgetary discipline over recent years, noting that the government has consistently spent less than budgeted. "Few countries in the world manage to execute their budgets better than planned," he said, adding that this rigour must be maintained.

Since 2020, debt levels have decreased by 16 percentage points, the minister reported. He stressed the need for ongoing fiscal caution amid major medium-term challenges, including housing shortages, rising social welfare demands, and an impending overhaul of the pension system.

The ageing population and longer life expectancies are straining pension sustainability, Lladós warned, calling for reforms alongside efforts to diversify the economy away from traditional sectors. Such steps, he argued, would sustain recent economic momentum, with Andorra's GDP growing faster than the European average over the past year.