{"id":5565,"date":"2022-07-12T23:32:34","date_gmt":"2022-07-12T21:32:34","guid":{"rendered":"https:\/\/www.augelegalfiscal.com\/andorra-economic-storm-and-differential-solution\/"},"modified":"2022-07-12T23:42:03","modified_gmt":"2022-07-12T21:42:03","slug":"andorra-economic-storm-and-differential-solution","status":"publish","type":"post","link":"https:\/\/www.augelegalfiscal.com\/en\/andorra-economic-storm-and-differential-solution\/","title":{"rendered":"Andorra: economic storm and differential solution"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5565\" class=\"elementor elementor-5565 elementor-5553\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3742fbe8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3742fbe8\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-77644644\" data-id=\"77644644\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1a77f818 elementor-widget elementor-widget-heading\" data-id=\"1a77f818\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #8f2b2f;color:#8f2b2f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #8f2b2f;color:#8f2b2f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.augelegalfiscal.com\/en\/andorra-economic-storm-and-differential-solution\/#Andorra_economic_storm_and_differential_solution\" >Andorra: economic storm and differential solution<\/a><\/li><\/ul><\/nav><\/div>\n<h1 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Andorra_economic_storm_and_differential_solution\"><\/span>Andorra: economic storm and differential solution<span class=\"ez-toc-section-end\"><\/span><\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-27989948 elementor-widget elementor-widget-text-editor\" data-id=\"27989948\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tWhile the Andorran Government is promoting measures to appease the loss of purchasing power of the country&#8217;s citizens, forcing a 3.3% increase in salaries below the average salary of the country or the pensions which are below the minimum salary by 3 67%, or making part of the transport free, or improving study grants, or reducing the IGI of basic necessities or optimizing the efficiency of the tax for empty apartments, among others, and which are supported by an extraordinary credit of approximately 10 million euros, the inflationary process on a world scale is inexorably advancing, aggravated by the war in Ukraine, and is leading us to an unprecedented economic crisis and a recession that will harm us, also Andorra, if the appropriate measures are not taken.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6eb62084 elementor-widget elementor-widget-text-editor\" data-id=\"6eb62084\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tIn Andorra, year-on-year inflation in May was 6.6%, compared to 8.7% in Spain and 5.2% in France, while in the first 5 months of the year it was already 4.8%. Clearly, the rise in food prices, but especially fuel prices, has had a lot to do with this. Let us recall that, on average, since May 2021, fuel prices have risen by 55%, to \u20ac1.65\/l.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ea851af elementor-widget elementor-widget-text-editor\" data-id=\"7ea851af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tMeanwhile, the European Central Bank, faced with an international inflation rate of 8.1% in May, has decided to react by announcing a first-rate hike of 0.25% in July, the first in 11 years, although everyone is aware that the European economy is not yet ready for a rate hike, and who knows, there could be a second hike in September, equal or higher. Meanwhile, the US Federal Reserve has just approved a historic rate hike from 0.75% to 1.75%, and further hikes are expected.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-62aca59c elementor-widget elementor-widget-text-editor\" data-id=\"62aca59c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tNext, the ECB plans to start controlling inflation, which is expected to be 6.8% in 2022, 3.5% in 2023 and 2.1% in 2024. Obviously, a rise in interest rates will mean that less money will be injected into companies, which will contract, and economic growth will slow down. Thus, the ECB forecasts growth of 2.8% in 2022, 2.1% in 2023 and 1.6% in 2024. It is clear then that the next two years, 2023 and 2024, we will experience an economic crisis that will be felt. We can imagine layoffs, contraction of consumption and foreclosures, among other effects and clearly, all together can influence the countries around us, that if they spend less on tourism, they will spend less in Andorra, with the corresponding damage to our vulnerable economy.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-40b77067 elementor-widget elementor-widget-text-editor\" data-id=\"40b77067\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tSome may say that this was before and that now Andorra has other mechanisms that allow us not to be so pessimistic, and in fact, those who see it that way is not wrong. Indeed, our country is not as indebted as neighbouring countries and, above all, it is in a phase of consolidation of the process of investment liberalization and economic diversification initiated in 2011. Precisely for this reason, we believe that the Andorran jurisdiction can become strong thanks to the more than obvious attraction it represents for foreign investors who, in addition to finding financial, economic, fiscal and social stability, our country can be a perfect refuge for times of crisis such as the one we are experiencing.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-04242f0 elementor-widget elementor-widget-text-editor\" data-id=\"04242f0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tIn the international context, specialists predict a 10-year recession if adequate measures are not taken. In fact, according to them, the conditions are in place for a &#8220;perfect storm&#8221; to occur, especially if the excessive growth of inflation cannot be controlled and stagflation is perpetuated, accompanied by a rise in interest rates which, since there is no end in sight, will cause the economic recession described above. The same specialists understand that in the short term, and regardless of what the United States does, the European economy cannot afford rates above 1.50% and also predict that it will be difficult to go below 4% inflation, despite the ECB&#8217;s forecasts to the contrary.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1999b7e elementor-widget elementor-widget-text-editor\" data-id=\"1999b7e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tFaced with this panorama, which is not at all encouraging, Andorra is postulated as the differential solution, based on its stability and the prospects of consolidation of foreign investment and economic diversification. This new business ecosystem is therefore preparing to test itself and become the majority option for those who, tired of the turmoil in their respective countries, are looking for peace, harmony and prosperity in an incomparable natural and safe environment.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1afa6cc6 elementor-widget elementor-widget-text-editor\" data-id=\"1afa6cc6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<b>The Management<\/b>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2225172 elementor-widget elementor-widget-text-editor\" data-id=\"2225172\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<span style=\"color: #a22d58;\">Aug\u00e9 Legal &amp; Fiscal<\/span>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-26090f4c elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"26090f4c\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>While the Andorran Government is promoting measures to appease the loss of purchasing power of the country&#8217;s citizens, forcing a 3.3% increase in salaries below the average salary of the country or the pensions which are below the minimum salary by 3 67%, or making part of the transport free, or improving study grants, or [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5559,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-5565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-auge"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/5565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/comments?post=5565"}],"version-history":[{"count":3,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/5565\/revisions"}],"predecessor-version":[{"id":5578,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/5565\/revisions\/5578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media\/5559"}],"wp:attachment":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media?parent=5565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/categories?post=5565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/tags?post=5565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}