Andorra Economy 2018


Andorra Economy 2018

Page last updated on February 28, 2018

Economy - overview:
Andorra has a developed economy and a free market, with per capita income above the European average and above the level of its neighbors, Spain and France. The country has developed a sophisticated infrastructure including a one-of-a-kind micro-fiber-optic network for the entire country. Tourism, retail sales, and finance comprise more than three-quarters of GDP. Duty-free shopping for some products and the country’s summer and winter resorts attract millions of visitors annually. Andorra uses the euro and is effectively subject to the monetary policy of the European Central Bank. Andorra's comparative advantage as a tax haven eroded when the borders of neighboring France and Spain opened and the government eased bank secrecy laws under pressure from the EU and OECD.Agricultural production is limited - only about 5% of the land is arable - and most food has to be imported, making the economy vulnerable to changes in fuel and food prices. The principal livestock is sheep. Manufacturing output and exports consist mainly of perfumes and cosmetic products, products of the printing industry, electrical machinery and equipment, clothing, tobacco products, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products.Andorra is open to, and actively seeking to attract, foreign investment. The Andorran economy is undergoing a process of diversification centered largely on the sectors of tourism, trade, property, and finance. To provide incentives for growth and diversification in the economy, the Andorran government began sweeping economic reforms in 2006. The Parliament approved three laws to complement the first phase of economic openness: on companies (October 2007), on business accounting (December 2007), and on foreign investment (April 2008 and June 2012). From 2011 to 2015, the Parliament also approved direct taxes in the form of taxes on corporations, on individual incomes of residents and non-residents, and on capital gains, savings, and economic activities. These regulations aim to establish a transparent, modern, and internationally comparable regulatory framework.The economic reforms aim to attract investment and businesses that can contribute most to Andorra’s economic development and offer greater diversification and higher value added. Prior to 2008, Andorra offered limited foreign investment opportunities largely because of concerns about the impact of foreign firms on such a small economy.

GDP (purchasing power parity):
$3.327 billion (2015 est.) $3.363 billion (2014 est.) $3.273 billion (2013 est.)
note: data are in 2012 US dollars
country comparison to the world: 186

GDP (official exchange rate):
$2.712 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
-1.1% (2015 est.) 1.4% (2014 est.) -0.1% (2013 est.)
country comparison to the world: 208
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$49,900 (2015 est.) $51,300 (2014 est.) $50,300 (2013 est.)
country comparison to the world: 29

GDP - composition, by sector of origin:
agriculture: 11.9%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 33.6%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 54.5% (2015 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
small quantities of rye, wheat, barley, oats, vegetables, tobacco; sheep, cattle

tourism (particularly skiing), banking, timber, furniture

Industrial production growth rate:
[see also: Industrial production growth rate country ranks ]

Labor force:
39,750 (2016)
country comparison to the world: 196
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 0.5%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 4.4%
[see also: Labor force - by occupation - industry country ranks ]
services: 95.1% (2015)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
3.7% (2016 est.) 4.1% (2015 est.)
country comparison to the world: 41
[see also: Unemployment rate country ranks ]

Population below poverty line:
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA%

revenues: $1.872 billion
[see also: Budget - revenues country ranks ]
expenditures: $2.06 billion (2016)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
69% of GDP (2016)
country comparison to the world: 4
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-6.9% of GDP (2016)
country comparison to the world: 186
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
41% of GDP (2014 est.) 41.4% of GDP (2013 est.)
country comparison to the world: 134
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
-0.9% (2015 est.) -0.1% (2014 est.)
country comparison to the world: 2
[see also: Inflation rate (consumer prices) country ranks ]

$78.71 million (2015 est.) $79.57 million (2014 est.)
country comparison to the world: 199
[see also: Exports country ranks ]

Exports - commodities:
tobacco products, furniture

$1.257 billion (2015 est.) $1.264 billion (2014 est.)
country comparison to the world: 172
[see also: Imports country ranks ]

Imports - commodities:
consumer goods, food, fuel, electricity

Debt - external:
$0 (2016)
country comparison to the world: 207
[see also: Debt - external country ranks ]

Exchange rates:
euros (EUR) per US dollar - 0.906 (2017 est.) 0.9214 (2016 est.) 0.9214 (2015 est.) 0.885 (2014 est.) 0.7634 (2013 est.)

NOTE: 1) The information regarding Andorra on this page is re-published from the 2018 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Andorra Economy 2018 information contained here. All suggestions for corrections of any errors about Andorra Economy 2018 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) The assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order

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