Iago Andreu, managing director of the Andorran Business Confederation (CEA), has stated that raising salaries is not an effective solution to combat inflation. He argues that while Andorran companies have raised wages in recent years, achieving higher salaries requires a diversification of the economy and a focus on sectors capable of offering better remuneration.
This statement follows comments made earlier this week by Antoni Bisbal, the dean of the College of Economists, who advocated for incremental salary increases to offset inflation. Andreu provides a business perspective, suggesting that salary increases alone will not address the rising cost of living.
He highlights that companies have already raised wages repeatedly, partly due to the demand for workers. However, he warns that inflation also increases business costs, particularly in sectors such as retail and hospitality. Moreover, he notes that increases in the minimum wage tend to affect the entire salary structure.
Andreu emphasises that the challenge is structural: "If we want higher salaries, we need economic sectors that can afford to pay them." He advocates for the diversification of the economy and the development of higher value-added activities as a sustainable path to achieving better remuneration.
