Andorra - Economic Indicators

Economic Overview

Andorra has a developed economy and a free market, with per capita income above the European average and above the level of its neighbors, Spain and France. The country has developed a sophisticated infrastructure including a one-of-a-kind micro-fiber-optic network for the entire country. Tourism, retail sales, and finance comprise more than three-quarters of GDP. Duty-free shopping for some products and the country’s summer and winter resorts attract millions of visitors annually. Andorra uses the euro and is effectively subject to the monetary policy of the European...

Continue reading View Factbook for Andorra

GDP Reference Last Previous Units Frequency
Real Gross Domestic Product 2016 1,924,840,000 1,901,410,000 NCU Annual
Nominal Gross Domestic Product 2016 2,584,100,000 2,535,120,000 NCU Annual
Demographics Reference Last Previous Units Frequency
Death Rate 2050 17.52 17.13 # per Ths. pop., NSA Annual
Birth Rate 2050 7.08 7.1 # per Ths. pop., NSA Annual
Net Migration 2050 0 0 Per Thousand, NSA Annual
Population 2050 74,765 75,534 Person, NSA Annual
Births 2012 737 793 #, NSA Annual
Deaths 2012 303 275 #, NSA Annual

Factbook

Background

Background:
The landlocked Principality of Andorra is one of the smallest states in Europe, nestled high in the Pyrenees between the French and Spanish borders. For 715 years, from 1278 to 1993, Andorrans lived under a unique coprincipality, ruled by French and Spanish leaders (from 1607 onward, the French chief of state and the Bishop of Urgell). In 1993, this feudal system was modified with the introduction of a modern, constitution; the co-princes remained as titular heads of state, but the government transformed into a parliamentary democracy.
Andorra has become a popular tourist destination visited by approximately 8 million people each year drawn by the winter sports, summer climate, and duty-free shopping. Andorra has also become a wealthy international commercial center because of its mature banking sector and low taxes. As part of its effort to modernize its economy, Andorra has opened to foreign investment, and engaged in other reforms, such as advancing tax initiatives aimed at supporting a broader infrastructure. Although not a member of the EU, Andorra enjoys a special relationship with the bloc that is governed by various customs and cooperation agreements and uses the euro as its national currency.

Geography

Location:
Southwestern Europe, Pyrenees mountains, on the border between France and Spain
Geographic coordinates:
42 30 N, 1 30 E
Map references:
Europe
Area:
total: 468 sq km
land: 468 sq km
water: 0 sq km
country comparison to the world: 196
Area - comparative:
2.5 times the size of Washington, DC
Land boundaries:
total: 118 km
border countries (2): France 55 km, Spain 63 km
Coastline:
0 km (landlocked)
Maritime claims:
none (landlocked)
Climate:
temperate; snowy, cold winters and warm, dry summers
Terrain:
rugged mountains dissected by narrow valleys
Elevation:
mean elevation: 1,996 m
elevation extremes: lowest point: Riu Runer 840 m
highest point: Pic de Coma Pedrosa 2,946 m
Natural resources:
hydropower, mineral water, timber, iron ore, lead
Land use:
agricultural land: 44.47%
arable land 13.4%; permanent crops 0%; permanent pasture 86.6%
forest: 34%
other: 21.5% (2014 est.)
Irrigated land:
0 sq km (2012)
Population - distribution:
population is unevenly distributed and is concentrated in the 7 urbanized valleys that make up the country's parishes (political administrative divisions)
Natural hazards:
avalanches
Environment - current issues:
deforestation; overgrazing of mountain meadows contributes to soil erosion; air pollution; wastewater treatment and solid waste disposal
Environment - international agreements:
party to: Biodiversity, Desertification, Hazardous Wastes, Ozone Layer Protection
signed, but not ratified: none of the selected agreements
Geography - note:
landlocked; straddles a number of important crossroads in the Pyrenees

People & Society

Population:
76,965 (July 2017 est.)
country comparison to the world: 200
Nationality:
noun: Andorran(s)
adjective: Andorran
Ethnic groups:
Andorran 46.2%, Spanish 26.4%, Portuguese 12.8%, French 5%, other 9.6% (2016 est.)
Languages:
Catalan (official), French, Castilian, Portuguese
Religions:
Roman Catholic (predominant)
Age structure:
0-14 years: 14.4% (male 6,340/female 6,003)
15-24 years: 9.64% (male 4,289/female 3,976)
25-54 years: 46.18% (male 20,233/female 19,348)
55-64 years: 14.16% (male 6,458/female 5,677)
65 years and over: 15.61% (male 6,788/female 6,590) (2017 est.)
population pyramid:
Median age:
total: 44.3 years
male: 44.4 years
female: 44.1 years (2017 est.)
country comparison to the world: 10
Population growth rate:
0.03% (2017 est.)
country comparison to the world: 190
Birth rate:
7.5 births/1,000 population (2017 est.)
country comparison to the world: 224
Death rate:
7.3 deaths/1,000 population (2017 est.)
country comparison to the world: 120
Net migration rate:
0 migrant(s)/1,000 population (2017 est.)
country comparison to the world: 70
Population distribution:
population is unevenly distributed and is concentrated in the 7 urbanized valleys that make up the country's parishes (political administrative divisions)
Urbanization:
urban population: 84.1% of total population (2017)
rate of urbanization: 0.09% annual rate of change (2015-20 est.)
Major urban areas - population:
ANDORRA LA VELLA (capital) 23,000 (2014)
Sex ratio:
at birth: 1.07 male(s)/female
0-14 years: 1.05 male(s)/female
15-24 years: 1.08 male(s)/female
25-54 years: 1.05 male(s)/female
55-64 years: 1.15 male(s)/female
65 years and over: 1.02 male(s)/female
total population: 1.06 male(s)/female (2017 est.)
Infant mortality rate:
total: 3.6 deaths/1,000 live births
male: 3.6 deaths/1,000 live births
female: 3.6 deaths/1,000 live births (2017 est.)
country comparison to the world: 199
Life expectancy at birth:
total population: 82.9 years
male: 80.7 years
female: 85.2 years (2017 est.)
country comparison to the world: 8
Total fertility rate:
1.4 children born/woman (2017 est.)
country comparison to the world: 212
Health expenditures:
8.1% of GDP (2014)
country comparison to the world: 55
Physicians density:
3.69 physicians/1,000 population (2015)
Hospital bed density:
2.5 beds/1,000 population (2009)
Drinking water source:
improved:
urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved:
urban: 0% of population
rural: 0% of population
total: 0% of population (2015 est.)
Sanitation facility access:
improved:
urban: 100% of population
rural: 100% of population
total: 100% of population
unimproved:
urban: 0% of population
rural: 0% of population
total: 0% of population (2015 est.)
HIV/AIDS - adult prevalence rate:
NA
HIV/AIDS - people living with HIV/AIDS:
NA
HIV/AIDS - deaths:
NA
Obesity - adult prevalence rate:
25.6% (2016)
country comparison to the world: 49
Education expenditures:
3.3% of GDP (2016)
Literacy:
definition: age 15 and over can read and write
total population: 100%
male: 100%
female: 100% (2016 est.)

Government

Country name:
conventional long form: Principality of Andorra
conventional short form: Andorra
local long form: Principat d'Andorra
local short form: Andorra
etymology: the origin of the country's name is obscure; the name may derive from the Arabic "ad-darra" meaning "the forest," a reference to its location as part of the Spanish March (defensive buffer zone) against the invading Moors in the 8th century
Government type:
parliamentary democracy (since March 1993) that retains its chiefs of state in the form of a co-principality; the two princes are the President of France and Bishop of Seu d'Urgell, Spain, who delegate responsibility to other officials
Capital:
name: Andorra la Vella
geographic coordinates: 42 30 N, 1 31 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions:
7 parishes (parroquies, singular - parroquia); Andorra la Vella, Canillo, Encamp, Escaldes-Engordany, La Massana, Ordino, Sant Julia de Loria
Independence:
1278 (formed under the joint sovereignty of the French Count of Foix and the Spanish Bishop of Urgell)
National holiday:
Our Lady of Meritxell Day, 8 September (1278)
Constitution:
history: drafted 1991, approved by referendum 14 March 1993, effective 28 April 1993
amendments: proposed by the coprinces jointly or by the General Council; passage requires at least a two-thirds majority vote by the General Council, ratification in a referendum, and sanctioning by the coprinces (2017)
Legal system:
mixed legal system of civil and customary law with the influence of canon law
International law organization participation:
has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction
Citizenship:
citizenship by birth: no
citizenship by descent only: the mother must be an Andorran citizen or the father must have been born in Andorra and both parents maintain permanent residence in Andorra
dual citizenship recognized: no
residency requirement for naturalization: 25 years
Suffrage:
18 years of age; universal
Executive branch:
chief of state: Co-prince Emmanuel MACRON (since 14 May 2017); represented by Patrick STROZDA (since 14 May 2017); and Co-prince Archbishop Joan-Enric VIVES i Sicilia (since 12 May 2003); represented by Josep Maria MAURI (since 20 July 2012)
head of government: Head of Government (or Cap de Govern) Antoni MARTI PETIT (since 1 April 2015)
cabinet: Executive Council of ten ministers designated by the head of government
elections/appointments: head of government indirectly elected by the General Council (Andorran parliament), formally appointed by the coprinces for a 4-year term; election last held on 31 March 2015 (next to be held in March 2019); the leader of the majority party in the General Council is usually elected head of government
election results: Antoni MARTI Petit (DA) elected head of government; percent of General Council vote - 79%
Legislative branch:
description: unicameral General Council of the Valleys or Consell General de les Valls (a minimum of 28 seats; 14 members directly elected in multi-seat constituencies (parishes) by simple majority vote and 14 directly elected in a single national constituency by proportional representation vote; members serve 4-year terms); note - each voter casts two separate ballots - one for a national list and one for a parish list
elections: last held on 1 March 2015 (next to be held in March 2019)
election results: percent of vote by party - DA 37.03%, PLA 27.68%, PS-VA-IC-independent coalition 23.53%, SDP 11.74%; seats by party - DA 15, PLA 8, PS-VA-IC-independent coalition 3, SDP 2
Judicial branch:
highest court(s): Supreme Court of Justice of Andorra or Tribunal Superior de la Justicia d'Andorra (consists of the court president and 8 judges organized into civil, criminal, and administrative chambers); Constitutional Court or Tribunal Constitucional (consists of 4 magistrates)
judge selection and term of office: Supreme Court president and judges appointed by the Supreme Council of Justice, a 5-member judicial policy and administrative body appointed 1 each by the coprinces, 1 by the General Council, 1 by the executive council president, and 1 by the courts; judges serve 6-year renewable terms; Constitutional magistrates appointed 2 by the coprinces and 2 by the General Council; magistrates' appointments limited to 2 consecutive 8-year terms
subordinate courts: Tribunal of Judges or Tribunal de Batlles; Tribunal of the Courts or Tribunal de Corts
Political parties and leaders:
Citizens' Initiative or IC [Sergi RICART] (including PS, VA, IC, and independents)
Democrats for Andorra or DA [Antoni MARTI PETIT]
Greens of Andorra or VA [Isabel LOZANO MUNOZ, Juli FERNANDEZ BLASI]
Liberal Party or PLA [Jordi GALLARDO]
Social Democratic Party or PS [Vincenc ALAY FERRER]
Social Democratic Progress Party or SDP [Victor NAUDI ZAMORA]
note: Andorra has several smaller parties at the parish level (one is Lauredian Union)
International organization participation:
CE, FAO, ICAO, ICC (NGOs), ICCt, ICRM, IFRCS, Interpol, IOC, IPU, ITU, OIF, OPCW, OSCE, UN, UNCTAD, UNESCO, Union Latina, UNWTO, WCO, WHO, WIPO, WTO (observer)
Diplomatic representation in the US:
chief of mission: Ambassador Elisenda VIVES BALMANA (since 2 March 2016)
chancery: 2 United Nations Plaza, 27th Floor, New York, NY 10017
telephone: [1] (212) 750-8064
FAX: [1] (212) 750-6630
Diplomatic representation from the US:
the US does not have an embassy in Andorra; the US ambassador to Spain is accredited to Andorra; US interests in Andorra are represented by the US Consulate General's office in Barcelona (Spain); mailing address: Paseo Reina Elisenda de Montcada, 23, 08034 Barcelona, Spain; telephone: [34] (93) 280-2227; FAX: [34] (93) 280-6175
Flag description:
three vertical bands of blue (hoist side), yellow, and red, with the national coat of arms centered in the yellow band; the latter band is slightly wider than the other 2 so that the ratio of band widths is 8:9:8; the coat of arms features a quartered shield with the emblems of (starting in the upper left and proceeding clockwise): Urgell, Foix, Bearn, and Catalonia; the motto reads VIRTUS UNITA FORTIOR (Strength United is Stronger); the flag combines the blue and red French colors with the red and yellow of Spain to show Franco-Spanish protection
note: similar to the flags of Chad and Romania, which do not have a national coat of arms in the center, and the flag of Moldova, which does bear a national emblem
National symbol(s):
red cow (breed unspecified); national colors: blue, yellow, red
National anthem:
name: "El Gran Carlemany" (The Great Charlemagne)
lyrics/music: Joan BENLLOCH i VIVO/Enric MARFANY BONS
note: adopted 1921; the anthem provides a brief history of Andorra in a first person narrative

Economy

Economy - overview:
Andorra has a developed economy and a free market, with per capita income above the European average and above the level of its neighbors, Spain and France. The country has developed a sophisticated infrastructure including a one-of-a-kind micro-fiber-optic network for the entire country. Tourism, retail sales, and finance comprise more than three-quarters of GDP. Duty-free shopping for some products and the country’s summer and winter resorts attract millions of visitors annually. 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 and the government eased bank secrecy laws under pressure from the EU and OECD.
Agricultural production is limited - only about 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 is open to, and actively seeking to attract, foreign investment. The Andorran economy is undergoing a process of diversification centered largely on the sectors of tourism, trade, property, and finance. To provide incentives for growth and diversification in the economy, the Andorran government began sweeping economic reforms in 2006. The Parliament approved three laws to complement the first phase of economic openness: on companies (October 2007), on business accounting (December 2007), and on foreign investment (April 2008 and June 2012). From 2011 to 2015, the Parliament also approved direct taxes in the form of taxes on corporations, on individual incomes of residents and non-residents, and on capital gains, savings, and economic activities. These regulations aim to establish a transparent, modern, and internationally comparable regulatory framework.
The economic reforms aim to attract investment and businesses that can contribute most to Andorra’s economic development and offer greater diversification and higher value added. Prior to 2008, Andorra offered limited foreign investment opportunities largely because of concerns about the impact of foreign firms on such a small economy.
GDP (purchasing power parity):
$3.327 billion (2015 est.)
$3.363 billion (2014 est.)
$3.273 billion (2013 est.)
note: data are in 2012 US dollars
country comparison to the world: 186
GDP (official exchange rate):
$2.712 billion (2016 est.)
GDP - real growth rate:
-1.1% (2015 est.)
1.4% (2014 est.)
-0.1% (2013 est.)
country comparison to the world: 207
GDP - per capita (PPP):
$49,900 (2015 est.)
$51,300 (2014 est.)
$50,300 (2013 est.)
country comparison to the world: 29
GDP - composition, by sector of origin:
agriculture: 11.9%
industry: 33.6%
services: 54.5% (2015 est.)
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%
Labor force:
39,750 (2016 est.)
country comparison to the world: 196
Labor force - by occupation:
agriculture: 0.5%
industry: 4.4%
services: 95.1% (2015 est.)
Unemployment rate:
3.7% (2016 est.)
4.1% (2015 est.)
country comparison to the world: 41
Population below poverty line:
NA%
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Budget:
revenues: $1.872 billion
expenditures: $2.06 billion (2016 est.)
Taxes and other revenues:
69% of GDP (2016 est.)
country comparison to the world: 4
Budget surplus (+) or deficit (-):
-6.9% of GDP (2016 est.)
country comparison to the world: 186
Public debt:
41% of GDP (2014 est.)
41.4% of GDP (2013 est.)
country comparison to the world: 135
Fiscal year:
calendar year
Inflation rate (consumer prices):
-0.9% (2015 est.)
-0.1% (2014 est.)
country comparison to the world: 2
Exports:
$78.71 million (2015 est.)
$79.57 million (2014 est.)
country comparison to the world: 199
Exports - commodities:
tobacco products, furniture
Imports:
$1.257 billion (2015 est.)
$1.264 billion (2014 est.)
country comparison to the world: 173
Imports - commodities:
consumer goods, food, fuel, electricity
Debt - external:
$0 (2016 est.)
country comparison to the world: 207
Exchange rates:
euros (EUR) per US dollar -
0.89 (2017 est.)
0.9 (2016 est.)
0.92 (2015 est.)
0.89 (2014 est.)
0.76 (2013 est.)

Energy

Electricity access:
electrification - total population: 100% (2016)
Electricity - production:
99.48 million kWh (2015 est.)
country comparison to the world: 198
Electricity - consumption:
221.6 million kWh (2015 est.)
country comparison to the world: 187
Electricity - exports:
6,000 kWh (2015 est.)
country comparison to the world: 95
Electricity - imports:
471.3 million kWh (2015 est.)
country comparison to the world: 82
Electricity - installed generating capacity:
520,000 kW (2010 est.)
country comparison to the world: 145
Electricity - from fossil fuels:
61.3% of total installed capacity (2010 est.)
country comparison to the world: 126
Electricity - from nuclear fuels:
0% of total installed capacity (2016 est.)
country comparison to the world: 40
Electricity - from hydroelectric plants:
23.3% of total installed capacity (2010 est.)
country comparison to the world: 83
Crude oil - production:
0 bbl/day (2016 est.)
country comparison to the world: 106
Crude oil - exports:
0 bbl/day (2016) (2016 est.)
country comparison to the world: 88
Crude oil - imports:
0 bbl/day (2016) (2016 est.)
country comparison to the world: 92
Crude oil - proved reserves:
0 bbl (2016) (2016 est.)
country comparison to the world: 106
Refined petroleum products - production:
0 bbl/day (2016 est.)
country comparison to the world: 115
Natural gas - production:
0 cu m (2016) (2016 est.)
country comparison to the world: 104
Natural gas - consumption:
0 cu m (2016) (2016)
country comparison to the world: 154
Natural gas - exports:
0 cu m (2016) (2016 est.)
country comparison to the world: 62
Natural gas - imports:
0 cu m (2016) (2016 est.)
country comparison to the world: 84
Natural gas - proved reserves:
0 cu m (2016 est.)
country comparison to the world: 111

Communications

Telephones - fixed lines:
total subscriptions: 38,694
subscriptions per 100 inhabitants: 45 (July 2016 est.)
country comparison to the world: 162
Telephones - mobile cellular:
total: 71,132
subscriptions per 100 inhabitants: 92 (July 2016 est.)
country comparison to the world: 198
Telephone system:
general assessment: modern automatic telephone system
domestic: modern system with microwave radio relay connections between exchanges
international: country code - 376; landline circuits to France and Spain (2016)
Broadcast media:
1 public TV station and 2 public radio stations; about 10 commercial radio stations; good reception of radio and TV broadcasts from stations in France and Spain; upgraded to terrestrial digital TV broadcasting in 2007; roughly 25 international TV channels available (2016)
Internet country code:
.ad
Internet users:
total: 83,887
percent of population: 97.9% (July 2016 est.)
country comparison to the world: 180

Transportation

Civil aircraft registration country code prefix:
C3 (2016)
Roadways:
total: 320 km (2015)
country comparison to the world: 205

Military & Security

Military branches:
no regular military forces; Police Corps of Andorra (2017)
Military - note:
defense is the responsibility of France and Spain

Transnational Issues

Disputes - international:
none

Economic Indicators for Andorra including actual values, historical data, and latest data updates for the Andorra economy.