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. 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.
Agriculture Products
small quantities of rye, wheat, barley, oats, vegetables, tobacco, sheep, cattle
Industries
tourism (particularly skiing), banking, timber, furniture
Industrial Production Growth Rate
NA
Labor Force
39,750 (2016)
Labor Force by Occupation
Agriculture: 0.5%
Industry: 4.4%
Services: 95.1% (2015)
Unemployment Rate
0: 3.7% (2016 est.)
1: 4.1% (2015 est.)
Population Below Poverty Line
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
-6.9% (of GDP) (2016)
Public Debt
0: 41% of GDP (2014 est.)
1: 41.4% of GDP (2013 est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
0: euros (EUR) per US dollar -
1: 0.885 (2017 est.)
2: 0.903 (2016 est.)
3: 0.9214 (2015 est.)
4: 0.885 (2014 est.)
5: 0.7634 (2013 est.)
