The Andorran Financial Authority published an update noting that S&P Global Ratings has confirmed Andorra’s sovereign ratings at A-/A-2 with a stable outlook, citing sound public finances, strong economic performance, a solid external position and sustained growth forecasts. S&P highlighted GDP growth of 3.4% in 2024 and a projected 2.2% in 2025, supported by tourism, construction and financial services, alongside an unemployment rate of 1.5%. The agency expects continued budget surpluses and public debt to remain low at around 30% of GDP, and pointed to the potential competitiveness benefits of an Association Agreement with the European Union. It also referenced banking sector strength, including a 2.6% non-performing loan ratio, and noted the importance of the repo line with the European Central Bank and international reserves equal to 12.7% of GDP.
Andorran Financial Authority 2025-10-11
Andorran Financial Authority reports S&P reaffirmation of Andorra’s A-/A-2 sovereign ratings with stable outlook
The Andorran Financial Authority reported that S&P Global Ratings has affirmed Andorra’s sovereign ratings at A-/A-2 with a stable outlook, citing robust public finances and economic performance. S&P forecasts GDP growth of 3.4% in 2024 and 2.2% in 2025, with low unemployment and public debt around 30% of GDP. The report also highlights the banking sector's strength and potential benefits from an EU Association Agreement.