Andorran economy

Tourism is the main component of the Andorran economy. Attractive to buyers from Spain and France due to its status as a free zone, the country has developed an important tourist complex that is very active in the winter season (thanks to the ski fields) and, to a lesser extent, in summer. In 2005, the country welcomed 11,049,490 visitors.

Andorra has a very active trade in consumer goods, especially imported manufactured products, which, being duty-free, are cheaper in Andorra than in Spain or France. As a consequence, smuggling is a common practice. Andorra's free zone status has also created controversy regarding its relationship with the European Union. Negotiations on this issue began in 1987, shortly after Spain joined the EU. A 1991 agreement set quotas for duty-free and placed limits on some products (mainly tobacco and alcoholic beverages). Even so, Andorra is allowed to maintain price differences with the EU countries, which is an attraction for visitors.

Although less than 2% of the land is arable, agriculture, together with livestock, were the main supports of the Andorran economy until the emergence of tourism. Sheep farming has traditionally been the main economic activity, but tobacco plantations are more lucrative and are now used for most of the country's cultivated area. Almost all of Andorra's food is imported.

Apart from handicrafts, it manufactures cigars, cigarettes, and furniture for domestic and export markets. A hydroelectric plant in Les Escaldes, with a capacity of 15 megawatts, provides 15% of Andorra's electricity; the rest of the electricity consumed comes from Spain and France.

Currency

Since January 1, 2002, the euro has been used as the official currency. Budgets were drawn up in pesetas before the disappearance of the Spanish currency.

Tourism

Services represent 80% of Andorra's GDP. In 2005, the country received 11,049,490 visitors, of whom 2,418,409 were tourists and 8,631,081 hikers. 57.2% of the visitors were Spanish, 39.8% were French, and only 3.0% came from other countries.

With some 270 hotels, 400 restaurants and numerous shops, tourism employs a large portion of the workforce.

Taxation

• Customs law:
  • Consumption rate. Applied on imported agricultural products.
  • Import duties. Applied on imported industrial products.
• National tax law:
  • Indirect Merchandise Tax (IMI). Tax that tax the production and import of products from the European Union.
  • Tax on the provision of banking and financial services.
  • Indirect tax on the provision of business and professional services (ISI).
  • Indirect tax on domestic production (IPI).
  • Trade tax (ACI).
  • Tax on real estate transmissions.
  • Rate due to the public service of notary faith.
• Canons:
  • About electricity and telephone consumption.
  • Vehicle holding rate.
  • Trademark Office rate.
  • Judicial rates.
  • Bingo game rate.
• Community fees and taxes:
  • Tax on the establishment of business, business and professional activities.
  • Tax on the built property.
  • Residence tax (foc i lloc).
  • Administration tax.

Macroeconomic data

GDP (Gross Domestic Product)

• Andorra ' s GDP for 2005 is estimated at $2,770 million
• $1.2 billion. U.S. (Converted according to purchasing power parity). Year 1996
• 1305,84 million € (Type of conversion: 1 dollar = 1,0882 € at 30/01/01)

• $18,000. U.S. (Converted according to purchasing power parity). Year 1996
• 19 587,6 € (Type conversion: 1 dollar = 1,0882 € to 30/01/01)

GDP distribution by sector

(No data)

Estimated GDP growth

(No data)

Inflation rate

• 2.77% (2001)

Trade balance

Imports

• 11 €049 million (2005).
• Main business partners (imports): Spain 53.2%, France 21.1%.

Exports

• 114 million € (2005)
• Main business partners (exports): Spain 59.5%, France 17.0%

Balance (Exports-Imports)

• -10 €936 million

Economic data of the population

Employed population

• 30 787 persons (1998)

Employed population by sector

• Primary: 0.47%
• Secondary: 21.48%
• Tertiary: 59.74%
• Other: 18,31 %

(Data from the Andorran government for the year 2000)

Population below the poverty line

(No data available)

Foreign trade

Imports

The merchandise with the greatest weight in Andorra's imports for the period 2010-2014 is presented below. The figures are expressed in US dollars, FOB value.

Imports of Andorra of the period 2010-2014 expressed in USD value FOB. Source

Exports

The main trading partners of Andorra for the period 2010-2014 are presented below. Most of its importers are in America and Europe. The figures expressed are in US dollars FOB value.

Exports of Andorra of the period 2010-2014 expressed in USD value FOB. Source