Andorra Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

 

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, in order to attract foreign investment and businesses that offer higher value added.

Real 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

Real GDP growth rate

-1.1% (2015 est.)

1.4% (2014 est.)

-0.1% (2013 est.)

Real GDP per capita

$49,900 (2015 est.)

$51,300 (2014 est.)

$50,300 (2013 est.)

GDP (official exchange rate)

$2.712 billion (2016 est.)

Inflation rate (consumer prices)

-0.9% (2015 est.)

-0.1% (2014 est.)

Credit ratings

Fitch rating: BBB+ (2018)

Standard & Poors rating: BBB (2017)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 11.9% (2015 est.)

industry: 33.6% (2015 est.)

services: 54.5% (2015 est.)

Agricultural products

small quantities of rye, wheat, barley, oats, vegetables, tobacco, sheep, cattle

Industries

tourism (particularly skiing), banking, timber, furniture

Industrial production growth rate

N/A

Labor force

39,750 (2016)

Labor force - by occupation

agriculture: 0.5%

industry: 4.4%

services: 95.1% (2015)

Unemployment rate

3.7% (2016 est.)

4.1% (2015 est.)

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 1.872 billion (2016)

expenditures: 2.06 billion (2016)

Budget surplus (+) or deficit (-)

-6.9% (of GDP) (2016)

Public debt

41% of GDP (2014 est.)

41.4% of GDP (2013 est.)

Taxes and other revenues

69% (of GDP) (2016)

Fiscal year

calendar year

Exports

$78.71 million (2015 est.)

$79.57 million (2014 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

Spain 40%, France 19%, United States 11%, Mauritania 5% (2019)

Exports - commodities

integrated circuits, medical supplies, essential oils, cars, tanned hides (2019)

Imports

$1.257 billion (2015 est.)

$1.264 billion (2014 est.)

Imports - partners

Spain 71%, France 17% (2019)

Imports - commodities

cars, refined petroleum, perfumes, shaving products, liquors (2019)

Debt - external

$0 (2016)

Exchange rates

euros (EUR) per US dollar -

0.885 (2017 est.)

0.903 (2016 est.)

0.9214 (2015 est.)

0.885 (2014 est.)

0.7634 (2013 est.)

NOTE: The information regarding Andorra on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Andorra 2022 information contained here. All suggestions for corrections of any errors about Andorra 2022 should be addressed to the CIA or the source cited on each page.