Andorra Economy - 2005

Economy - overview:
Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for roughly 80% of GDP. An estimated 9 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 - 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 - $1.9 billion (2003 est.)

GDP - real growth rate:
2% (2003 est.)

GDP - per capita:
purchasing power parity - $26,800 (2003 est.)

GDP - composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Labor force:
33,000 (2001 est.)

Labor force - by occupation:
agriculture 1%, industry 21%, services 78% (2000 est.)

Unemployment rate:
0% (1996 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
4.3% (2000)

Budget:
revenues: $385 million
expenditures: $342 million, including capital expenditures of NA (1997)

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

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

Industrial production growth rate:
NA%

Electricity - production:
NA kWh

Electricity - consumption:
NA kWh

Electricity - exports:
0 kWh (2002)

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

Exports:
$58 million f.o.b. (1998)

Exports - commodities:
tobacco products, furniture

Exports - partners:
Spain 58%, France 34% (2000)

Imports:
$1.077 billion (1998)

Imports - commodities:
consumer goods, food, electricity

Imports - partners:
Spain 48%, France 35%, US 2.3% (2000)

Debt - external:
$NA

Economic aid - recipient:
none

Currency (code):
euro (EUR)

Exchange rates:
euros per US dollar - 0.8054 (2004), 0.886 (2003), 1.0626 (2002), 1.1175 (2001), 1.0854 (2000)