Economy of Andorra

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 by a scarcity of arable land, and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing 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 - $1.2 billion (1996 est.)
GDP - per capita: purchasing power parity - $18,000 (1996 est.)
Inflation rate (consumer prices): 1.62% (1998)
Labor force: 30,787 salaried employees (1998)
Labor force - by occupation: agriculture 1%, industry 21%, services 72%, other 6% (1998)
Unemployment rate: 0%
Budget:
revenues: $385 million
expenditures: $342 million (1997)
Industries: tourism (particularly skiing), cattle raising, timber, tobacco, banking
Industrial production growth rate: NA%
Electricity - production: 116 million kWh (1998)
Electricity - imports: imports electricity from Spain and France
Agriculture - products: small quantities of tobacco, rye, wheat, barley, oats, vegetables; sheep
Exports: $58 million (f.o.b., 1998)
Exports - commodities: tobacco products, furniture
Exports - partners: France 34%, Spain 58% (1998)
Imports: $1.077 billion (c.i.f., 1998)
Imports - commodities: consumer goods, food, electricity
Imports - partners: Spain 48%, France 35%, US 2.3% (1998)
Economic aid - recipient: none
Currency: 1 French franc (F) = 100 centimes; 1 peseta (Pta) = 100 centimos; the French and Spanish currencies are used

SOURCE: The World Factbook