Andorra Economy Profile 2006

Economy - overview

Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for more than 80% of GDP. An estimated 11.6 million tourists visit annually, attracted by Andorra's duty-free status and by its summer and winter resorts. 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. The banking sector, with its partial "tax haven" status, also contributes substantially to the economy. Agricultural production is limited - only 2% of the land is arable - and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing output consists mainly of cigarettes, cigars, 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.

GDP (purchasing power parity)

$1.84 billion (2004)

GDP (official exchange rate)

NA

GDP - real growth rate

4% (2004 est.)

GDP - per capita (PPP)

$24,000 (2004)

GDP - composition by sector

agriculture: NA%
industry: NA%
services: NA%

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

3.4% (2004)

Labor force

48,740 (2004)

Labor force - by occupation

agriculture: 0.34%
industry: 19.63%
services: 80.03% (2004)

Unemployment rate

0% (1996 est.)

Budget

revenues: $373.5 million
expenditures: $373.5 million; including capital expenditures of $NA (2004)

Industries

tourism (particularly skiing), cattle raising, timber, banking

Industrial production growth rate

NA%

Electricity - production

NA kWh

Electricity - consumption

NA kWh

Electricity - exports

NA kWh

Electricity - imports

NA kWh; note - most electricity supplied by Spain and France; Andorra generates a small amount of hydropower

Agriculture - products

small quantities of rye, wheat, barley, oats, vegetables; sheep

Exports

$145 million f.o.b. (2004)

Exports - commodities

tobacco products, furniture

Exports - partners

Spain 58%, France 34% (2004)

Imports

$1.077 billion (1998)

Imports - commodities

consumer goods, food, electricity

Imports - partners

Spain 51.5%, France 22.3%, US 0.3% (2004)

Debt - external

$NA

Economic aid - recipient

none

Currency (code)

euro (EUR)

Exchange rates

euros per US dollar - 0.8041 (2005), 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001)

Fiscal year

calendar year