Economy in Andorra

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Economy—overview: Tourism the mainstay of Andorra's tiny well-to-do economy accounts for roughly 80% of GDP. An estimated 10 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 "tax haven" status also contributes substantially to the economy. Agricultural production is limited by a scarcity of arable land and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing 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—$1.2 billion (1995 est.)

GDP—per capita: purchasing power parity—$18 000 (1995 est.)

Budget:

revenues: $138 million

expenditures: $177 million including capital expenditures of $NA (1993)

Industries: tourism (particularly skiing) sheep timber tobacco banking

Electricity—capacity: 35 000 kW (1992)

Electricity—production: 140 million kWh (1992)

Electricity  Andorra exports most of its electricity to France and Spain

Agriculture—products: small quantities of tobacco rye wheat barley oats vegetables; sheep raising

Exports:

total value: $47 million (f.o.b. 1995)

commodities: electricity tobacco products furniture

partners: France 49% Spain 47%

Imports:

total value: $1 billion (1995)

commodities: consumer goods food

partners: France Spain US 4.2%

Contributors
March 11, 2005 change by hpharmsen

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