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{{Short description|National economy of Andorra}}
{{Short description|none}}
{{Infobox Economy
{{Infobox Economy
|country = Andorra
|country = Andorra
Line 6: Line 6:
|currency = [[Euro]] (EUR, €)
|currency = [[Euro]] (EUR, €)
|year = Calendar year
|year = Calendar year
|organs = [[European Union|EU]] [[customs union]]
|organs = [[European Union Customs Union|EU Customs Union]]
|population = {{increase}} 77,543 (1 January 2020 est.)<ref>{{cite web |title=Population on 1 January |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00001&plugin=1 |website=ec.europa.eu/eurostat |publisher=[[Eurostat]] |access-date=13 July 2020}}</ref>
|population = {{increase}} 77,543 (1 January 2020 est.)<ref>{{cite web |title=Population on 1 January |url=https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tps00001&plugin=1 |website=ec.europa.eu/eurostat |publisher=[[Eurostat]] |access-date=13 July 2020}}</ref>
|gdp rank = 168th (PPP, 2022)
|gdp = {{plainlist|
|gdp = {{plainlist|
{{increase}} $3.669 billion ([[GDP (nominal)|nominal]]; 2023)<ref name="IMFWEOAD">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2023/April/weo-report?c=111,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: April 2023|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
{{increase}} $3.897 billion ([[GDP (nominal)|nominal]]; 2024)<ref name="IMFWEOAD">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=111,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: April 2024|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
{{increase}} $5.704 billion ([[Purchasing power parity|PPP]]; 2023)<ref name="IMFWEOAD"/>
{{increase}} $6.001 billion ([[Purchasing power parity|PPP]]; 2024)<ref name="IMFWEOAD"/>
}}
|gdp rank = {{plainlist|
* [[List of countries by GDP (nominal)|159th (nominal; 2024)]]
* [[List of countries by GDP (PPP)|168th (PPP; 2024)]]
}}
|growth = {{plainlist|
* {{Increase}} 8.7%&nbsp;(2022)<ref name="IMF_forecast">{{cite web | url=https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023 | title=The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID|work=[[International Monetary Fund]]|date=April 11, 2023 }}</ref>
* {{Increase}} 1.3%&nbsp;{{abbr|(2023f)|2023 forecast}}<ref name="IMF_forecast"/>
* {{Increase}} 1.5%&nbsp;{{abbr|(2024f)|2024 forecast}}<ref name="IMF_forecast"/>
}}
|per capita = {{plainlist|
{{increase}} $44,900 (nominal; 2024)<ref name="IMFWEOAD"/>
{{increase}} $69,146 (PPP; 2024)<ref name="IMFWEOAD"/>
}}
|per capita rank = {{plainlist|
* [[List of countries by GDP per capita (nominal)|24th (nominal; 2024)]]
* [[List of countries by GDP per capita (PPP)|18th (PPP; 2024)]]
}}
}}
|growth = {{decrease}}8.95% (Real, 2021 est.)
|per capita = {{increase}} $65,372 (PPP, 2022)
|sectors = agriculture 11.9%, industry 33.6%, services 54.5% (2015 est.)
|sectors = agriculture 11.9%, industry 33.6%, services 54.5% (2015 est.)
|inflation = {{decrease}}0.9% (CPI, 2015 est.)
|inflation = {{decrease}}0.9% (CPI, 2015 est.)
|poverty = no data
|poverty = no data
|hdi = {{plainlist|
* {{increase}} 0.884 {{color|darkgreen|very high}} (2022)<ref name="HDI">{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=4 May 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|35th]])
*{{increase}} 0.810 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI (30th)]] (2022)<ref name="HDI"/>}}
|labor = 39,750 (2016)
|labor = 39,750 (2016)
|occupations = agriculture 0.5%, industry 4.4%, services 95.1% (2015)
|occupations = agriculture 0.5%, industry 4.4%, services 95.1% (2015)
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}}
}}


The '''economy of Andorra''' is a developed and free market economy driven by finance, retail, and tourism.<ref name = ciaworldfactbook>{{cite web | title = Andorra | url = https://www.cia.gov/the-world-factbook/countries/andorra/ | website = The World Facebook | publisher = CIA | access-date = 29 October 2019}}</ref> The country's [[gross domestic product]] (GDP) was US$5.30 billion in 2022.{{Fact|date=September 2021}} Attractive for shoppers from France and Spain as a [[free port]], [[Andorra]] also has developed active summer and winter tourist resorts.<ref name=":1">{{Cite web|date=May 2000|title=Background Note: Andorra|url=http://www.state.gov/r/pa/ei/bgn/3164.htm|url-status=live|archive-url=https://web.archive.org/web/20020605232138/http://www.state.gov/r/pa/ei/bgn/3164.htm|archive-date=June 5, 2002|publisher=[[U.S. Department of State]]|postscript=. {{PD-notice}}}}</ref> With some 270 hotels and 400 restaurants, as well as many shops, the tourist trade employs a growing portion of the domestic labour force.<ref name=":1" /> An estimated 13 million tourists visit annually.{{Fact|date=September 2021}}
The '''economy of Andorra''' is a developed and free market economy driven by finance, retail, and tourism.<ref name = ciaworldfactbook>{{cite web | title = Andorra | url = https://www.cia.gov/the-world-factbook/countries/andorra/ | website = The World Facebook | publisher = CIA | access-date = 29 October 2019}}</ref> The country's [[gross domestic product]] (GDP) was US$6.00 billion in 2024.<ref name="IMFWEOAD"/> Attractive for shoppers from France and Spain as a [[free port]], [[Andorra]] also has developed active summer and winter tourist resorts.<ref name=":1">{{Cite web|date=May 2000|title=Background Note: Andorra|url=http://www.state.gov/r/pa/ei/bgn/3164.htm|url-status=live|archive-url=https://web.archive.org/web/20020605232138/http://www.state.gov/r/pa/ei/bgn/3164.htm|archive-date=June 5, 2002|publisher=[[U.S. Department of State]]|postscript=. {{PD-notice}}}}</ref> With some 270 hotels and 400 restaurants, as well as many shops, the tourist trade employs a growing portion of the domestic labour force.<ref name=":1" /> An estimated 10 million tourists visit annually.<ref>{{Cite web |date=4 October 2023 |title=Andorra Country profile |url=https://www.bbc.com/news/world-europe-17028050 |access-date=7 April 2024 |website=bbc.com}}</ref>


There is a fairly active trade in [[consumer goods]], including imported manufactured items, which, because they are duty-free, are less expensive in Andorra than in neighboring countries.<ref name=":1" /> Andorra's duty-free status also has had a significant effect on the controversy concerning its relationship with the [[European Union]] (EU).<ref name=":1" /> Its negotiations on duty-free status and relationship with the EU began in 1987, soon after Spain joined.<ref name=":1" /> An agreement that went into effect in July 1991 sets duty-free quotas and places limits on certain items &ndash; mainly milk products, tobacco products and alcoholic beverages.<ref name=":1" /> Andorra is permitted to maintain price differences from other EU countries, and visitors enjoy limited duty-free allowances.<ref name=":1" />
There is a fairly active trade in [[consumer goods]], including imported manufactured items, which, because they are duty-free, are less expensive in Andorra than in neighboring countries.<ref name=":1" /> Andorra's duty-free status also has had a significant effect on the controversy concerning its relationship with the [[European Union]] (EU).<ref name=":1" /> Its negotiations on duty-free status and relationship with the EU began in 1987, soon after Spain joined.<ref name=":1" /> An agreement that went into effect in July 1991 sets duty-free quotas and places limits on certain items &ndash; mainly milk products, tobacco products and alcoholic beverages.<ref name=":1" /> Andorra is permitted to maintain price differences from other EU countries, and visitors enjoy limited duty-free allowances.<ref name=":1" />

Latest revision as of 22:53, 30 May 2024

Economy of Andorra
Andorra la Vella
CurrencyEuro (EUR, €)
Calendar year
Trade organisations
EU Customs Union
Statistics
PopulationIncrease 77,543 (1 January 2020 est.)[1]
GDP
Increase $3.897 billion (nominal; 2024)[2]

Increase $6.001 billion (PPP; 2024)[2]

GDP rank
GDP growth
  • Increase 8.7% (2022)[3]
  • Increase 1.3% (2023f)[3]
  • Increase 1.5% (2024f)[3]
GDP per capita
Increase $44,900 (nominal; 2024)[2]

Increase $69,146 (PPP; 2024)[2]

GDP per capita rank
GDP by sector
agriculture 11.9%, industry 33.6%, services 54.5% (2015 est.)
Decrease0.9% (CPI, 2015 est.)
Population below poverty line
no data
  • Increase 0.884 very high (2022)[4] (35th)
  • Increase 0.810 very high IHDI (30th) (2022)[4]
Labour force
39,750 (2016)
Labour force by occupation
agriculture 0.5%, industry 4.4%, services 95.1% (2015)
UnemploymentDecrease3.7% (2016 est.)
Main industries
tourism (particularly skiing), banking, timber, furniture
External
ExportsIncrease $115 million (2021)
Export goods
tobacco products, furniture
ImportsIncrease $1.73 billion (2020)
Import goods
consumer goods, food, electricity
Public finances
$0 (2016)
Revenues$403 million (2011)
Expenses$470 million (2011)
Economic aidno data
A (Domestic)
A (Foreign)
AAA (T&C Assessment)
(Standard & Poor's)[5]
All values, unless otherwise stated, are in US dollars.


The economy of Andorra is a developed and free market economy driven by finance, retail, and tourism.[6] The country's gross domestic product (GDP) was US$6.00 billion in 2024.[2] Attractive for shoppers from France and Spain as a free port, Andorra also has developed active summer and winter tourist resorts.[7] With some 270 hotels and 400 restaurants, as well as many shops, the tourist trade employs a growing portion of the domestic labour force.[7] An estimated 10 million tourists visit annually.[8]

There is a fairly active trade in consumer goods, including imported manufactured items, which, because they are duty-free, are less expensive in Andorra than in neighboring countries.[7] Andorra's duty-free status also has had a significant effect on the controversy concerning its relationship with the European Union (EU).[7] Its negotiations on duty-free status and relationship with the EU began in 1987, soon after Spain joined.[7] An agreement that went into effect in July 1991 sets duty-free quotas and places limits on certain items – mainly milk products, tobacco products and alcoholic beverages.[7] Andorra is permitted to maintain price differences from other EU countries, and visitors enjoy limited duty-free allowances.[7]

The results of Andorra's elections thus far indicate that many support the government's reform initiatives and believe the country must, to some degree, integrate into the European Union in order to continue to enjoy its prosperity.[7] Although arable land comprises less than 2% of the country, agriculture was the mainstay of the Andorran economy until the upsurge in tourism.[7] Sheep raising has been the principal agricultural activity, but tobacco growing is lucrative.[7] Most of Andorra's food is imported.[7]

In addition to handicrafts, manufacturing includes cigars, cigarettes and furniture for domestic and export markets. A hydroelectric plant at Les Escaldes, with a capacity of 26.5 megawatts, provides 40% of Andorra's electricity; Spain provides the rest.[7]

Overview

[edit]

Tourism is the mainstay of Andorra's economy, accounting for roughly 80% of GDP.[9] An estimated 9 million tourists visit annually, attracted by Andorra's duty-free status and by its summer and winter resorts.[9] Andorra's comparative advantage has recently eroded as the economies of neighboring France and Spain have been opened up, providing broader availability of goods and lower tariffs.[9] The banking sector, with its "tax haven" status, also contributes substantially to the economy.[9] Agricultural production is limited by a scarcity of arable land, and most food has to be imported.[9] The principal livestock activity is sheep raising.[9] Manufacturing consists mainly of cigarettes, cigars and furniture.[9] Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs).[9]

Statistics

[edit]
Sotheby's Andorra office

GDP: purchasing power parity - US$3.327 billion (2015)
country comparison to the world: 190

GDP - real growth rate: 8.95% (2015 est.)
country comparison to the world: 132

GDP - per capita: purchasing power parity - US$49,900 (2015)
country comparison to the world: 29

GDP - composition by sector: (2015 est.)
agriculture: 11.9%
industry: 33.6%
services: 54.5%

Population below poverty line: N/A

Household income or consumption by percentage share:
lowest 10%: N/A
highest 10%: N/A

Inflation rate (consumer prices): -0.9% (2015 est.)
country comparison to the world: 225

Labor force: 42,230 (2007)
country comparison to the world: 185

Labor force - by occupation: agriculture 0.3%, industry 20.8%, services 79% (2007)

Unemployment rate: 3.7%
country comparison to the world: 183

Budget:
revenues: US$1.872 billion
expenditures: US$2.06 billion (2016)

Industries: tourism (particularly skiing), banking, timber, furniture

Industrial production growth rate: -3.9% (2020 est.)
country comparison to the world: 184

Electricity - production: N/A

Electricity - production by source:
fossil fuel: 0%
hydro: 40%
nuclear: 0%
other: 60% imported from Spain

Electricity - consumption: N/A

Electricity - exports: N/A

Electricity - imports: N/A ; note - imports electricity from Spain and France; Andorra generates a small amount of hydropower

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

Exports: US$1.842 billion f.o.b. (2020 est.)
country comparison to the world: 163

Exports - commodities: integrated circuits, dental fitting supplies, cars, gold, essential oils (2021)

Exports - partners: Spain 40%, France 19%, United States 11%, Mauritania 5% (2019)

Imports: US$1.727 billion (2020 est.)
country comparison to the world: 178

Imports - commodities: cars, refined petroleum, perfumes, shaving products, liquors (2019)

Imports - partners: Spain 71%, France 17% (2019)

Debt - external: $0 (2016)

Economic aid - recipient: none

Currency: Euros have replaced the French franc and the Spanish peseta.

Exchange rates: euros per US dollar - 0.845 (2021), 0.6827 (2008), 0.7306 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 0.9867 (January 2000), 0.9386 (1999)

Fiscal year: calendar year

Companies

[edit]

In 2022, the sector with the highest number of companies registered in Andorra is Services with 2,515 companies followed by Retail Trade and Wholesale Trade with 1,157 and 1,144 companies respectively.[10]

See also

[edit]

References

[edit]
  1. ^ "Population on 1 January". ec.europa.eu/eurostat. Eurostat. Retrieved 13 July 2020.
  2. ^ a b c d e "Report for Selected Countries and Subjects: April 2024". imf.org. International Monetary Fund.
  3. ^ a b c "The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID". International Monetary Fund. April 11, 2023.
  4. ^ a b "Human Development Report 2023/2024" (PDF). United Nations Development Programme. 13 March 2024. Archived (PDF) from the original on 13 March 2024. Retrieved 4 May 2024.
  5. ^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
  6. ^ "Andorra". The World Facebook. CIA. Retrieved 29 October 2019.
  7. ^ a b c d e f g h i j k l "Background Note: Andorra". U.S. Department of State. May 2000. Archived from the original on June 5, 2002. Public Domain This article incorporates text from this source, which is in the public domain.{{cite web}}: CS1 maint: postscript (link)
  8. ^ "Andorra Country profile". bbc.com. 4 October 2023. Retrieved 7 April 2024.
  9. ^ a b c d e f g h "Andorra". The World Factbook. Central Intelligence Agency. Archived from the original on December 6, 2000. Public Domain This article incorporates text from this source, which is in the public domain.{{cite web}}: CS1 maint: postscript (link)
  10. ^ "Industry Breakdown of Companies in Andorra". HitHorizons.
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