Selected Issues

Principality of Andorra: Selected Issues

Principality of Andorra: Selected Issues

Andorra, the IMF’s newest member since October 2020, participated in its first Article IV consultation with a commitment to further enhance transparency. Tourism and banking-related services dominate economic activity in the euroized economy. The country enjoys long-standing political stability, a good track-record of fiscal discipline, a gender-balanced work force, and internationally competitive ski resorts. The authorities are managing the pandemic well with universal testing and expanded hospital capacity that kept fatality rates very low despite high case-loads. The testing strategy helped Andorra implement more targeted internal restrictions than in neighboring countries. At the same time, emergency fiscal measures stabilized real incomes and supported firms.

The Andorran economy is recovering strongly from the pandemic, supported by a rebound in tourism, retail trade, construction, and professional services. Real GDP is expected to reach pre-crisis levels in the second half of 2022. While the unemployment rate is amongst the lowest in Europe and continues to decline, pockets of vulnerability remain. Notwithstanding significant policy buffers, there are still substantial downside risks, notably the impact in Europe of the war in Ukraine, higher than expected inflation, and a resurgence of infection rates.

"This unique book examines the history, culture, and inner workings of the seven smallest independent countries in Europe. These are among the oldest states on the continent and, despite their diversity, they have much in common. Most have relatively high per capita incomes and life expectancies, and relatively low unemployment. This narrative presents the unique issues that confront small countries, including maintaining their independence, economic viability, preserving their native languages, and sustaining their governments. The second part of the book describes each microstate in turn, showing how each one has met these challenges and adapted over time. These concise and engaging chapters contain cultural information on subjects including the arts, gastronomy, and popular tourist sites."--Provided by publisher.

The Global Informal Workforce is a fresh look at the informal economy around the world and its impact on the macroeconomy. The book covers interactions between the informal economy, labor and product markets, gender equality, fiscal institutions and outcomes, social protection, and financial inclusion. Informality is a widespread and persistent phenomenon that affects how fast economies can grow, develop, and provide decent economic opportunities for their populations. The COVID-19 pandemic has helped to uncover the vulnerabilities of the informal workforce.

Border clearance processes by customs and other agencies are among the most important and problematic links in the global supply chain. Delays and costs at the border undermine a country’s competitiveness, either by taxing imported inputs with deadweight inefficiencies or by adding costs and reducing the competitiveness of exports. This book provides a practical guide to assist policy makers, administrators, and border management professionals with information and advice on how to improve border management systems, procedures, and institutions.