Andorra Economy

Andorra Economy  | read this item

Andorra economy is mainly agricultural. It has made a significant progress recently. The country’s GDP per capita equals $38,800, which ensures Andorra 11th place in the CIA’s list.

Andorra has a small territory of arable land that makes up 2 per cent of the country’s total area. The major role in Andorra economy belongs to agriculture, including livestock. One of the main income sources is tobacco production. Tourism also turns out to be profitable and makes up 80 per cent of GDP growth. Government spending and taxation are of not very much help. Since cultivation is not very developed in the country it has to import a lot of commodities. It results in the existing structural trade deficit. Government finances are stable.

Growth rates in Andorra economy are changeable and difficult to foresee. However, it needs to be mentioned that the economic growth rate has been quite stable and makes up 3.5 per cent, as of 2005. The fiscal position has become much better over the last years. Andorra is one of the members of European Union Customs Union. The national income of the country in the year 2007 made up about $3.66 billion.

Import refers to the main trade activities in Andorra. This is connected with the fact that Andorra has lower taxation rates compared to its neighbors. As it is known the main source of food in the country is agriculture. Sheep breeding plays a significant role. Tobacco production is developed. Handicrafts industry is considered to be one of the main income providers for Andorra economy. In manufacturing industry the leading positions belong to cigars, cigarettes and furniture that are sold not only on national market but on the international scale as well.

Topics: Andorra Economy, economic growth rate, gdp growth, gdp per capita, members of european union