Andorra
On March 9, 2026, the International Monetary Fund (IMF) released its annual report on Andorra, highlighting a positive macroeconomic outlook with an estimated GDP growth of 3.1% for the year. However, the report emphasized the urgent need for structural reforms in the pension system and the rental housing market.
The IMF stressed that Andorra's pension system requires immediate reform to ensure its long-term sustainability. The current system faces challenges due to demographic changes and increasing life expectancy, which could strain public finances if not addressed promptly.
The report also criticized the existing policy of freezing rental contracts, stating that it distorts the housing market and hampers access to affordable housing. The IMF recommended lifting these restrictions to improve market efficiency and better allocate public resources.
Additionally, the IMF advised the Andorran government to implement measures to contain healthcare spending, ensuring that expenditures remain sustainable without compromising the quality of care.
The IMF expressed confidence that the ongoing negotiations for an association agreement with the European Union would benefit Andorra, despite the slow progress in discussions.
These recommendations aim to strengthen Andorra's economic resilience and ensure sustainable growth in the coming years.
