Andorra’s Economy Is Suffering Badly Due To Spanish And French Covid Border Closures.
ANDORRA- the tax haven that is squeezed between Spain’s Catalonia and France is struggling to survive now that its tourism trade has stopped.
Andorra, where the famous Spanish YouTuber Rubén Doblas, El Rubius, has decided to move his residence to pay fewer taxes, is suffering a major economic crisis due to the COVID pandemic. To make matters worse, the Generalitat of Catalonia has announced it will extend the municipal confinement until, at least, on February 7.
The closure of borders in Catalan territory announced in November came a serious blow to a December campaign that was launched, in which all hopes had been placed to achieve a level of economic recovery.
With a GDP that is 40% dependent on winter tourism, the measures adopted by France and Spain with regard to mobility are causing historic drops in the turnover of most businesses in the sector. The collapse of GDP in the second quarter of 2020 was 21.6%, with services being the most affected sector.
According to official sources from the Andorran Government, the total fall in GDP in 2020 will be 11%, although there are other calculations which point to a decline of above 20%. If these are correct. then this would return the country to wealth levels similar to those of 2004.
“Andorra is highly dependent on mobility. If you close the borders, you have closed the doors of shops, hotels and restaurants directly ”, explains Jordi Pujol, director of the Unió Hotelera d’Andorra (UHA), which groups together a total of 82 hotels and 40 restaurants. “At the beginning of November, the vast majority of hotels began to close and put the majority of the staff in ERTE, and we continue to do so until today,” he says.
Thank you for taking the time to read this news article “Andorra’s Economy Suffering Badly Due To Spanish And French Border Closures”. For more UK daily news, Spanish daily news and Global news stories, visit the Euro Weekly News home page.