Andorra is a member of the IMF
Small but mighty Andorra became a member of the International Monetary Fund (IMF) on October 16, 2020, marking a major turning point in its economic history. Since January 2020, when the application for membership was submitted, the country has achieved several milestones.
A virtual process under the shadow of the pandemic
The accession process required close collaboration among various IMF departments, including the European Department, the Finance Department, the Legal Department, the Secretariat Department, and the Statistics Department. This process, complex but necessary, allowed Andorra to become a member of the IMF, thus opening the door to a series of crucial benefits.
The benefits of being a member of the IMF
Membership gives Andorra privileged access to IMF advice. The country can now benefit from an annual review of its economy, request technical assistance and, if necessary, access IMF loans. This membership also gives Andorra the opportunity to participate actively in the Spring Meetings and the Annual Meetings of the IMF and the World Bank.
Andorra in five key facts
- A small European giant: Although Andorra is small, it is the largest microstate in Europe, surpassing Liechtenstein, Malta, Monaco, San Marino and the Vatican. With an area of 468 square kilometres, it occupies a singular place on the European map.
- A clean currency: Although the euro is the official currency, Andorra is neither in the eurozone nor in the European Union. Currently negotiating an association agreement with the EU, the country adopted parliamentary democracy in 1993.
- Diversified Economy: Andorra’s main economic sectors include tourism, trade, and banking. Formerly focused on agriculture, the landlocked nation in the Pyrenees became a regional financial center in the 50s. Today, tourism and trade account for nearly 40% of the economy, while the financial sector contributes 20%.
- Political parity: Andorra stands out for its political parity, with almost half of its parliamentarians being women. A reality that far exceeds the global average, underscoring the country’s commitment to gender equality.
- Environmental commitment: Committed to sustainability, Andorra has quintupled its renewable energy production since 2016. The government is setting ambitious targets to reduce energy dependency and achieve carbon neutrality by 2050.
In conclusion, Andorra, by becoming a member of the IMF, strengthens its position on the world economic scene while continuing to promote the values of parity and sustainability. A nation that, although small in size, demonstrates great ambition for its future.
