Standard & Poor's (S&P) has improved Andorra's sovereign rating, according to its latest assessment. The government views this upgrade as a confirmation of effective economic management, supported by four main pillars: economic growth driven by tourism, construction, and financial services; robust public finances, which have recorded surpluses over the past four years; financial stability; and integration with Europe.
However, the agency cautions that there are still outstanding duties. The foremost challenge is to diversify the economy to reduce reliance on traditional sectors, particularly emphasising the need for pension system reform. Access to the European market, which will facilitate an association agreement, is expected to aid in economic diversification.
Regarding pension reform, Minister Ramon Lladós expresses less optimism, acknowledging that it will remain a task for the government that emerges from the general elections scheduled for next year. He also anticipates that business income will continue to rise, as many new companies established in the past two years are beginning to generate significant revenue.
On a related note, the Minister of Finance is hopeful that the budget for 2027 will be approved on time. According to Lladós, it would be difficult to justify any delays beyond the first half of December, to ensure its implementation from January.
