The International Monetary Fund (IMF) published this Monday the final report of the 2026 Article IV consultationin which he analyzes the economic results of the 2025 and the future prospects for Andorra. The document confirms the solidity of the country’s economy, with a growth of 3.9% in 2025, above initial forecasts, driven mainly by tourism and the financial sector, as well as by the positive evolution of the rest of the activities. The labor market remains close to full employment and inflation stood at 2.7% at the end of the year.
Despite these results, the international body foresees a moderation of growth in the coming years, with an estimate of 2.1% for 2026. The report warns of several structural challenges that can slow down the economy in the medium term, such as the low productivity of traditional sectors, the difficulty of accessing housing and the aging of the population. This last factor can increase the pressure on public spending, especially in pensions and healthcare, an area in which it expects spending to rise from 6% of GDP in 2025 to 7.4% in 2035.
In this context, the IMF recommends continuing with reforms to improve the efficiency of the health system and control spending, with measures focused on primary care, the management of chronic diseases and the reduction of hospital and pharmaceutical costs. The organization also highlights the importance of international cooperation and the integration process with the European Unionwhich he sees as an opportunity to diversify the economy and strengthen stability, although he warns that it will entail transition costs and regulatory adaptations in the short term
