The Andorran economy continues to grow with a 2.2% increase reported in Q2 this year, with the result that 2018 could better the previous growth of 2.3%pa recorded in 2014. The growth in non-financial sectors and construction is particularly strong though industrial sector remains a drag on the economy. This level of growth is on a par with the EU average, ahead of its neighbour France though slightly behind Spain.
The rating agency Fitch has upped Andorra’s rating to BBB+ while S&P maintained its BBB rating, while noting this could be increased depending on the outcome of negotiations with the EU. Both agencies consider the outlook to be stable.
The volume of property transactions this year has so far grown by 25% over the same period in 2017 and maintains the sustained growth that started four years ago, according to data released by the Andorra Statistical Office.
Before the summer break the government approved a Bill to modify the existing Law on payment and electronic money services, to incorporate the European Directive and reinforce security against fraud and promote innovation in the domain of payment services and to cement Andorra’s position as one of the European leaders in internet use. The finance minister, Jordi Cinca, stated that the legislation consolidates the rules affecting international payment services and will increase the attractiveness of Andorra as a business destination for foreign investment. The legislation allows the full integration of payment services, which will benefit consumers, micro companies and other users and create a dynamic, competitive and innovative business environment.
Blockchain: The Andorran authorities are reported to be working on proposals to enable the use of virtual financial assets and the use of Blockchain technology with the aim of attracting outside investment and creating highly qualified employment. The Confederation of Andorran Business (CEA) has welcomed the initiative which it is hoped will enable Andorra to become an international leader in this new technology and the boost it is could give to the economy.
Two legislative texts seek to regulate a matter that could create new companies in Andorra and attract others from outside, with the consequent creation of jobs. This process has already started in other countries, which have seen in new technologies an opportunity to create wealth. Those who have taken the initiative are aware that Andorra cannot compete in an area of the future development like this without making changes to the existing legislation. The Andorran CEA welcomed the initiative and the working group that is analyzing the advantages that the adoption of this new technology can bring and the use of virtual coins. The idea would be to convert Andorra into a "serious international referent" in this area.
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