Global economy: Andorra
Tourism, retail sales, and finance are the mainstays of Andorra’s small and well-to-do economy, which accounts for more than three quarters of GDP. Attractive to buyers from Spain and France due to its status as a free zone, the country has developed an important tourist complex that is very active in the winter season (thanks to the ski resorts) and, to a lesser extent, in the summer. The country receives 11.6 million tourists every year.
Although less than 2% of the land is arable, agriculture, together with livestock, were the main supports of the Andorran economy until the rise of tourism. Sheep farming has traditionally been the main economic activity, but tobacco plantations are more lucrative and are now used for most of the country’s cultivated area. Almost all of Andorra’s food is imported.
Apart from handicrafts, it manufactures cigars, cigarettes and furniture for domestic and export markets. A hydroelectric plant in Les Escaldes, with a capacity of 15 megawatts, supplies 20% of Andorra’s electricity; the rest of the electricity consumed comes from Spain.
Andorra’s economic advantages were accentuated in recent years, after France and Spain opened up their economies, offering various consumer goods at low prices. The banking sector, with its partial “tax haven” status, also contributes substantially to the economy. It is estimated that Andorran banks represent 16% of the country’s Gross Domestic Product.
Archives
PRINCIPAL FIGURES | 2012 | 2013 | 2014 |
Estimated population * | 69.758 | 69.966 | 70.570 |
Nominal GDP (€ million) | 2.463,0 | 2.471,7 | 2.525,5 |
Nominal GDP per capita (€) | 35.308 | 35.327 | 35.786 |
Country rating (sovereign debt) Standard & Poor’s | A-/A-2 | A-/A-2 | BBB+/A-2 |
Andorran Government budget (€ million) | 745,2 | 1.062,4 | 573,7 |
Aggregate Communes budget (€ million) | 119,7 | 131,6 | 133,2 |
CPI | 1,6% | 2,5% | 1,1% |
Household consumption (€ million) | 1.448,5 | n.d. | n.d. |
Employed | 35.777 | 35.039 | 35.331 |
Minimum salary | 951,6 | 962,0 | 962,0 |
Average salary | 2.010,1 | 1.998,6 | 2.053,3 |
Compensation of employees (€ million) | 863,0 | 840,3 | 870,6 |
Imports of goods (€ million) | 1.102,7 | 1.128,0 | 1.175,0 |
Exports of goods (€ million) | 82,4 | 74,5 | 73,7 |
Establishments (companies & trade) | 7.178 | 7.385 | 7.668 |
Hotel establishments | 258 | 253 | 249 |
Number of beds in hotel business | 34.271 | 34.062 | 34.019 |
Visitors (million) | 7,9 | 7,7 | 7,8 |
GDP and GVA
GDP (estimated gross domestic product) GVA by SECTORS (EUR million) | 2014 | % GVA |
GVA Agriculture, Forestry and Fishing | 12.5 | 0.5% |
GVA Industries (except Construction) | 37.5 | 1.5% |
GVA Manufacturing | 80,2 | 5.2% |
GVA Construction | 132.5 | 7.6% |
GVA Wholesale and retail trade. Repair of motor vehicles | 359.4 | 14.2% |
GVA Transport and Storage | 175.9 | 1.5% |
GVA Accomodation and Food Services | 37.3 | 7.0% |
GVA Information and communication | 95.8 | 3.8% |
GVA Financial and insurance activities | 527.1 | 20.9% |
GVA Real estate activities | 223.1 | 8.8% |
GVA Professional, scientific and technical activities; administrative and support service activi | 144.1 | 5.7% |
GVA Public administration, defence, education, human health and social work activities | 315.2 | 12.5% |
GVA Other Activities | 130.7 | 5.2% |
Total GVA | 2.271.4 | 89.9% |
Net taxes | 254.0 | 12,1% |
Nominal GDP | 2.525.5 | 100,0% |
The GDP of the Principality for 2014 was placed at 2,525.5 million euro; +2.2% more than the GDP recorded at the end of 2013 (2,471.7 million euro). This increase in GDP is principally due to rise in the sectors of “Financial and insurance activities” (+10.0%), “Industries (except Construction)” (+8.20%) and “Information and communication” (+4.5%). In exchange, the sectors that presents a contraction were the sectors of “Agriculture, Forestry and Fishing” (-12.2%), “Construction” (-4.8%), “Accomodation and Food Services” (-1.7%) and “Wholesale and retail trade. Repair of motor vehicles” (-1.6%).
CPI (consumer price index)
CPI – GROUPS OF ACTIVITY | Weightings 2014 | Annual variations |
Food, beverages & tobacco | 1.722 | 2,0% |
Clothing & footwear | 459 | 1,0% |
Housing, water, gas, electricity | 2.458 | -1,7% |
Furniture and domestic items | 522 | 0,8% |
Health | 289 | 0,5% |
Transport | 2.106 | -1,2% |
Leisure, entertainment & culture | 608 | 0,2% |
Education | 86 | 1,5% |
Hotels, cafes & restaurants | 690 | 0,7% |
Sundry goods and services | 1.030 | -0,1% |
General index | 10.000 | -0,1% |
Underlying inflation | 8.179 | 0,4% |
Oil products | 641 | -6,9% |
Services | 2.908 | 0,6% |
Establishments by sectors
ESTABLISHMENTS BY SECTION | 2013 | 2014 | % var.2013 – 2014 |
Agriculture, livestock, hunting & forestry | 39 | 40 | 2,6% |
Manufacturing industries | 341 | 352 | 3,2% |
Production & distribution of electricity, gas & water | 5 | 5 | 0,0% |
Construction | 789 | 795 | 0,8% |
Motor vehicles trade & repair | 2.573 | 2.654 | 3,1% |
Tourist accommodation & restaurants | 982 | 984 | 0,2% |
Transport, storage & communications | 402 | 403 | 0,2% |
Financial system | 159 | 163 | 2,5% |
Real estate and rental activities; business services | 1.376 | 1.512 | 9,9% |
Education | 76 | 83 | 9,2% |
Health & veterinary activities, social services Other social activities & communityservices | 161
482 |
173
504 |
7,5%
4,6% |
TOTAL | 7.385 | 7.668 | 3,8% |
Imports
IMPORTS, Principal countries of origin (euro) | 2011 | 2012 | % | |
Spain | 697.403.204 | 666.101.444 | -4,5% | |
France | 200.138.448 | 189.864.150 | -5,1% | |
Germany | 49.804.113 | 39.309.709 | -21,1% | |
China | 48.749.318 | 40.789.666 | -16,3% | |
Italy | 28.413.297 | 25.384.042 | -10,7% | |
United Kingdom | 16.394.390 | 18.150.807 | 10,7% | |
Netherlands | 9.705.456 | 10.942.425 | 12,7% | |
Switzerland | 13.741.873 | 15.435.604 | 12,3% | |
Portugal | 10.456.418 | 12.377.775 | 18,4% | |
Japan | 8.653.369 | 7.264.402 | -16,1% | |
Others | 65.475.760 | 60.001.140 | -8,4% | |
TOTAL Source: Ministry of Finance and Public Function; Customs Department | 1.148.935.648 | 1.085.621.164 | –5,5% |
Government budget
GOVERNMENT BUDGET | 2005 | 2010 | 2011 | 2012 |
Result for the year | -40,8 | -52,9 | -50,9 | -86,9 |
Deviation in expenses | 96,3% | 101,5% | 99,8% | 115,9% |
Deviation in income | 98,0% | 85,0% | 86,1% | 110,2% |
Expenses (million EUR) | ||||
Current expenses | 175,6 | 233,6 | 271,6 | 274,4 |
Investment expenses | 121,0 | 123,3 | 87,6 | 180,5 |
Debt redemption & acquisition | 188,3 | 246,6 | 256,0 | 299,2 |
Income (million EUR) | ||||
Income from taxes & duties | 232,1 | 293,1 | 298,9 | 355,1 |
Other income | 23,7 | 10,9 | 9,4 | 13,0 |
Capital income | 260,2 | 338,3 | 320,8 | 377,2 |
Commune budgets
COMMUNE BUDGETS* | 2005 | 2010 | 2011 | 2012 |
Result for the year | 2,4 | 19,1 | 14,1 | 15,2 |
Deviation in expenses | 66,9% | 74,5% | 80,3% | 83,0% |
Deviation in income | 99,4% | 91,7% | 96,4% | 97,1% |
Expenses (million EUR) | ||||
Current expenses | 80,2 | 99,5 | 98,9 | 92,3 |
Investment expenses | 43,3 | 15,1 | 13,9 | 8,7 |
Debt redemption & acquisition | 19,7 | 14,7 | 12,3 | 12,8 |
Income (million EUR) | ||||
Income from taxes & duties | 58,2 | 69,9 | 64,9 | 58,5 |
Other income | 67,7 | 63,9 | 61,9 | 57,7 |
Capital income | 9,7 | 0,0 | 2,0 | 3,5 |
*Aggregated commune budgets: Canillo, Encamp, Ordino, La Massana, Andorra la Vella, Sant Julià de Lòria, Escaldes-Engordany
Employers per sectors
Eemployers per sector NUMBER OF EMPLOYERS | 1995 | 2000 | 2005 | 2010 | 2012 |
Agriculture, livestock, hunting & | 177 | 151 | 146 | 148 | 167 |
Industries | 1.474 | 1.519 | 1.783 | 1.667 | 1.462 |
Electricity, gas, water production | 108 | 126 | 149 | 158 | 164 |
Construction | 4.024 | 5.108 | 6.723 | 4.491 | 3.258 |
Vehicles sales and repairs | 8.149 | 9.618 | 11.142 | 9.732 | 9.042 |
Tourist accommodation & resta | 3.894 | 4.796 | 5.635 | 4.862 | 4.667 |
Transport & communications | 785 | 1.007 | 1.228 | 1.154 | 1.084 |
Financial system | 1.168 | 1.351 | 1.515 | 1.661 | 1.711 |
Real estate & business services | 1.580 | 2.602 | 3.885 | 4.078 | 3.931 |
Public Administration & social s | 2.290 | 3.034 | 3.821 | 4.355 | 4.337 |
Education | 305 | 424 | 536 | 563 | 546 |
Health & veterinary activities, so | 841 | 1.030 | 1.349 | 1.669 | 1.692 |
Other social activities & persona | 1.412 | 1.991 | 2.335 | 2.398 | 2.406 |
Others | 1.099 | 1.311 | 1.482 | 1.614 | 1.566 |
TOTAL | 27.305 | 34.066 | 41.727 | 38.550 | 36.033 |
Minimal salary
per month (euro) % annual | CPI | ||
1998 | 654,2 | — | 2,1% |
1999 | 667,8 | 2,1% | 3,3% |
2000 | 689,6 | 3,3% | 5,1% |
2001 | 725,1 | 5,1% | 1,3% |
2002 | 734,4 | 1,3% | 5,0% |
2003 | 771,3 | 5,0% | 1,6% |
2004 | 783,5 | 1,6% | 3,8% |
2005 | 812,9 | 3,8% | 3,1% |
2006 | 838,1 | 3,1% | 3,2% |
2007 | 864,9 | 3,2% | 3,8% |
2008 | 897,9 | 3,8% | 1,9% |
2009 | 915,2 | 1,9% | 0,0% |
2010 | 915,2 | 0,0% | 1,6% |
2011 | 929,1 | 1,5% | 2,5% |
2012 | 951,6 | 2,4% | 1,1% |
Employment service
Applicants looking for jobs | 510 | 639 | 950 |
Applicants looking for job improvement | 152 | 163 | 188 |
People receiving unemployment benefit | 34 | 74 | 125 |
Jobs offered | 272 | 167 | 214 |
Total visitors
The number of visitors in 2012 was 7,900,440, -1.0% compared to 2011. By type, tourists were 2,237,939, -0.2%, Same-day visitors were 5,662,501, -1.4%.
Tourist accomm0dation
In the tourism sector, the different types of accommodation play a fundamental role. The Principality of Andorra has 249 tourist accommodation establishments in various categories, with an availability of 34,271 beds. This offer is supplemented by a new type of accommodation called “Furnished Apartments”, which offers 1,174 apartments with a total of 5,868 beds.
Source: Government of Andorra. Department of statistics of Andorra