Economy - overview:
Tourism, retail sales, and finance are the mainstays of Andorra's tiny, well-to-do economy, accounting for more than three-quarters of GDP. Andorra's duty-free status for some products and its summer and winter resorts attract millions of visitors annually, although the economic downturn in neighboring countries has curtailed the number of tourists. Agricultural production is limited - only 5% of the land is arable - and most food has to be imported, making the economy vulnerable to changes in fuel and food prices. The principal livestock is sheep. Manufacturing output and exports consist mainly of perfumes and cosmetic products, products of the printing industry, electrical machinery and equipment, clothing, tobacco products, 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. Andorra uses the euro and is effectively subject to the monetary policy of the European Central Bank. Andorra's comparative advantage as a tax haven eroded when the borders of neighboring France and Spain opened; its bank secrecy laws have been relaxed under pressure from the EU and OECD.Slower growth in Spain and France has dimmed Andorra's economic prospects. Since 2010, a drop in tourism contributed to a contraction in GDP and a sharp deterioration of public finances, prompting the government to begin implementing several austerity measures to reduce the budget deficit, including levying a special corporate tax. The Government is also planning to institute an income tax at the behest of the Organization for Economic Cooperation and Development. The new tax will apply to anyone who lives in the principality for at least 183 days in a calendar year. The first $30,000 of income will be tax free, with the next $20,000 taxed at 5%. The balance of income exceeding the initial $50,000 will be taxed at 10%, which is still less than in most West European countries. Andorra’s Government also relaxed its residency and investment laws in 2012 to make the country more attractive to foreign investors. A person now must spend 90 days a year in the principality to qualify for residency, compared with the previous 180-day requirement. Foreigners now have the same property ownership rights as citizens. In addition, three new categories of residency permits were introduced. Anyone who is retired or at least not working in Andorra can obtain a permit in the first category by making a financial investment in the country of at least €400,000, which can include a property purchase.

GDP (purchasing power parity):
$3.163 billion (2012 est.) $3.214 billion (2011 est.) $3.227 billion (2010 est.)
note: data are in 2012 US dollars
country comparison to the world: 184
[see also: GDP country ranks ]

GDP (official exchange rate):
$4.8 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
-1.6% (2012 est.) -0.4% (2011 est.) -1.9% (2010 est.)
country comparison to the world: 206
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$37,200 (2011 est.) $37,700 (2010 est.) $37,900 (2009 est.)
country comparison to the world: 45
[see also: GDP - per capita country ranks ]

GDP - composition, by sector of origin:
agriculture: 14%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 79%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 6% (2011 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
NA%
[see also: Industrial production growth rate country ranks ]

Labor force:
36,060 (2012)
country comparison to the world: 200
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 0.4%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 4.7%
[see also: Labor force - by occupation - industry country ranks ]
services: 94.9% (2010)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
4% (2012 est.) 1.9% (2011 est.)
country comparison to the world: 35
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA%
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: NA%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: NA%
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Budget:
revenues: $1.029 billion
[see also: Budget revenues country ranks ]
expenditures: $1.041 billion (2012)
[see also: Budget expenditures country ranks ]

Taxes and other revenues:
21.4% of GDP (2012)
country comparison to the world: 147
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-0.3% of GDP (2012)
country comparison to the world: 37
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
41.1% of GDP (2012) 37.7% of GDP (2011)
country comparison to the world: 109
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.1% (2012 est.) -2.5% (2011 est.)
country comparison to the world: 70
[see also: Inflation rate (consumer prices) country ranks ]

Exports:
$70 million (2012 est.) $72 million (2011 est.)
country comparison to the world: 198
[see also: Exports country ranks ]

Exports - commodities:
tobacco products, furniture

Imports:
$1.43 billion (2012 est.) $1.501 billion (2011 est.)
country comparison to the world: 171
[see also: Imports country ranks ]

Imports - commodities:
consumer goods, food, fuel, electricity

Debt - external:
$NA
[see also: Debt - external country ranks ]

Exchange rates:
euros (EUR) per US dollar - 0.89 (2015 est.) 0.75 (2014 est.) 0.76 (2013 est.) 0.78 (2012 est.) 0.72 (2011 est.)