Editing Economy of Andorra

{{Short description|none}}
{{Infobox Economy
|country = Andorra
|image = Andorra la Vella view2.jpg
|caption = [[Andorra la Vella]]
|currency = [[Euro]] (EUR, €)
|year = Calendar year
|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>
|gdp = {{plainlist|
{{increase}} $3.73 billion ([[GDP (nominal)|nominal]]; 2025)<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}} $4.42 billion ([[Purchasing power parity|PPP]]; 2025)<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}} $54,280 (nominal; 2025)<ref name="IMFWEOAD"/>
{{increase}} $64,386 (PPP; 2025)<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)]]
}}
|sectors = agriculture 11.9%, industry 33.6%, services 54.5% (2015 est.)
|inflation = {{decrease}}0.9% (CPI, 2015 est.)
|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)
|occupations = agriculture 0.5%, industry 4.4%, services 95.1% (2015)
|unemployment = {{decrease}}3.7% (2016 est.)
|industries = tourism (particularly skiing), banking, timber, furniture
|exports = {{increase}} $115 million (2021)
|export-goods = tobacco products, furniture
|export-partners =|france(+)34%, Spain(+) 58% (1998)
|imports = {{increase}} $1.73 billion (2020)
|import-goods = consumer goods, food, electricity
|import-partners = |Spain 51.5%, |France(+) 22.3%, |Us(+) 0.3% (2003)
|debt = $0 (2016)
|revenue = $403 million (2011)
|expenses = $470 million (2011)
|credit = A (Domestic)<br>A (Foreign)<br>AAA (T&C Assessment)<br>([[Standard & Poor's]])<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011}}</ref>
|aid = no data
|cianame = andorra
}}
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" />

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.<ref name=":1" /> Although [[arable land]] comprises less than 2% of the country, [[agriculture]] was the mainstay of the Andorran economy until the upsurge in tourism.<ref name=":1" /> Sheep raising has been the principal agricultural activity, but tobacco growing is lucrative.<ref name=":1" /> Most of Andorra's food is imported.<ref name=":1" />

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.<ref name=":1" />

==Overview==
[[Tourism]] is the mainstay of Andorra's economy, accounting for roughly 80% of GDP.<ref name=":0">{{Cite web|title=Andorra|url=http://www.cia.gov/cia/publications/factbook/geos/an.html|url-status=dead|archive-url=https://web.archive.org/web/20001206135600/http://www.cia.gov/cia/publications/factbook/geos/an.html|archive-date=December 6, 2000|website=[[The World Factbook]]|publisher=[[Central Intelligence Agency]]|postscript=. {{PD-notice}}}}</ref> An estimated 9 million tourists visit annually, attracted by Andorra's duty-free status and by its summer and winter resorts.<ref name=":0" /> 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.<ref name=":0" /> The banking sector, with its "[[tax haven]]" status, also contributes substantially to the economy.<ref name=":0" /> Agricultural production is limited by a scarcity of [[arable land]], and most food has to be imported.<ref name=":0" /> The principal livestock activity is sheep raising.<ref name=":0" /> Manufacturing consists mainly of cigarettes, cigars and furniture.<ref name=":0" /> Andorra is a member of the EU [[Customs Union]] and is treated as an EU member for trade in manufactured goods (no tariffs).<ref name=":0" />

==Statistics==
[[File:Sotheby's Andorra.jpg|thumb|[[Sotheby's]] Andorra office]]
'''GDP:''' purchasing power parity - US$3.327 billion (2015)
<br>''country comparison to the world:'' 190

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

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

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

'''Population below poverty line:''' N/A

'''Household income or consumption by percentage share:'''
<br>''lowest 10%:'' N/A
<br>''highest 10%:'' N/A

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

'''Labor force:''' 42,230 (2007)
<br>''country comparison to the world:'' 185

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

'''Unemployment rate:''' 3.7%
<br>''country comparison to the world:'' 183

'''Budget:'''
<br>''revenues:'' US$1.872 billion
<br>''expenditures:'' US$2.06 billion (2016)

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

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

'''Electricity - production:''' N/A

'''Electricity - production by source:'''
<br>''fossil fuel:'' 0%
<br>''hydro:'' 40%
<br>''nuclear:'' 0%
<br>''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.)
<br>''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.)
<br>''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===
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.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/andorra | title=Industry Breakdown of Companies in Andorra | website=HitHorizons}}</ref>

==See also==
{{Portal|Andorra}}
* [[Tourism in Andorra]]

==References==
{{reflist}}
*{{CIA World Factbook}} 

{{Andorra topics}}
{{Economy of Europe}}

[[Category:Economy of Andorra| ]]
[[Category:Economies of Europe by country|Andorra]]
[[bn:অ্যান্ডোরা#অর্থনীতি]]