Andorra to overhaul GDP accounting after Statistical Office admits gaps

The government acknowledges that its current calculation of gross domestic product (GDP) is incomplete and has shortcomings that are being addressed. In a written response to a request for information from Concordia parliamentary leader Cerni Escalé, Minister of Presidency, Economy, Labour and Housing Conxita Marsol said the Statistical Office currently only provides an indirect GDP estimate via the supply (production) approach, both annually and quarterly.

The supply-based method measures the value added generated by different productive sectors but does not yet provide a full picture from the other two national accounting perspectives: the demand (expenditure) approach and the income approach. The Statistical Office specifically admits it lacks a working income-side estimation, which should include compensation of employees, gross operating surplus and mixed income (largely corporate profits), and taxes on production and imports.

To address these gaps, the government is revising and updating its methodology with the aim of aligning it with best practices in the European system of accounts. Andorra requested technical assistance from the International Monetary Fund in May; the IMF has provided methodological guidance to help develop a complete GDP estimation system.

Efforts are under way to obtain direct data that will allow GDP to be calculated by supply, demand and income, and to introduce a quarterly demand-side estimate. Marsol said achieving these objectives would improve the quality, transparency and coherence of national statistics and enable a more comprehensive analysis of the Andorran economy.