The IMF values positively the management of the pandemic

13/04/2021

The International Monetary Fund has published a preliminary report highlighting the good management of the health crisis in the Principality of Andorra, as well as the capacity to react by approving economic measures to mitigate the effects of the pandemic. It also points to the good prospects for economic recovery, the stability of some sectors and the diversification strategy.

This preliminary report is the previous one to the final report, as reported by the Minister of Finance, Eric Jover, and the Secretary of State for International Financial Affairs, Marc Ballestà; it could be published in the month of June. The preliminary conclusions of this first report should be submitted for debate and the final decision of the IMF Executive Board.

The IMF preliminary report positively values the management of the pandemic carried out by the Andorran authorities, especially due to the capacity to universal testing the population and to expand hospital capacity.

The IMF also highlights the economic measures implemented to mitigate the negative effects of the pandemic on the economy. In this sense, the conclusions foresee a rebound in real GDP growth for this year. According to estimates, a recovery of 5.8% is expected during 2021, more optimistic data than those calculated by the authorities of the Principality, which placed the recovery at 4.2%. The debt diversification strategy that has been carried out has also been valued very positively.

The importance of publishing statistics in accordance with international standards has also been recognized, allowing great strides to be made in developing more complete data on the Andorran economy and thus improving supervision.

As provided for in Article IV of the founding agreement, the IMF holds regular bilateral discussions with its members. A report is produced from these meetings. The meetings in Andorra – a total of 38 – have been held between March 19 and April 8. The IMF delegation highlighted the level of preparation of the meetings and the quality and detail of the responses provided by, among others, representatives of different government ministries and departments, public and parapublic companies, and representatives of the private sector.