In this article we are going to analyze andorran society and economy statistically. For this we will use the report called Andorra en Xifres (Andorra in figures) published every year the Andorran Chamber of Commerce, Industry and Services and that collects the main indicators and socioeconomic data of Andorra. Specifically, the 2018 version, which is the last published to date, and draws up the indicators for 2017.
Andorra at a glance
So quickly and how main data we can highlight that Andorra, in 2017:
- It had a nominal GDP of 2,674 million euros
- Imports of 1,307 million euros
- And exports worth 106 million euros
- It had a population of 74,794 inhabitants and a population density of 160 inhab / km2
- Therefore, the nominal GDP per capita of € 35,753
- Which measured in dollars in Purchasing Power Parity (PPA) are $ 49,153
- His public debt was 1,004 million euros
- Which is equivalent to 37.6% of GDP
- With a rating according to Standard & amp; BBB / A-2 Poor’s
- and a public cash result of 3.3% of GDP
- CPI inflation or growth was 2.6%
- Households with Internet access were 85.4% of the total
- There were 37,705 employees
- with an average monthly salary of € 2,076
- And a minimum salary of € 991.5 per month
- Forming a total salary mass of 939.4 million euros
- With an activity rate of 80.6%
- There were 8,408 companies and 8,837 establishments
- It had 8.2 million inhabitants, 235 tourist accommodation and 33,099 beds in total
Foreign investment and immigration
In 2017, 774 requests for foreign investment were authorized and 609 were formalized, with a total volume of 82.5 million euros and an average volume of € 135,504, creating 451 different businesses.
By country, the volume of formalized investments was 51.6% from Spain, 23.2% from France, 7.8% from Andorra, 4.5% from Russia, 3.1% from Ukraine, 2.0% from China, 1.8% from the United Kingdom and 6.1% from other countries.
In addition, they were processed 47,878 immigration authorizations (2.8% more than the previous year) of which 42,267 were with residence and 5,611 without residence.
Of the authorizations with residence, 33,943 were residence and work, 7,954 residence only and 370 residence and work of education personnel. Of the authorizations without residence, 3,820 were temporary, 1,426 were from border personnel, and 365 other.
According to nationality, 23,792 or 49.7% of the immigration authorizations were from Spanish, 3,693 or 7.7% were from French, 10,826 or 22.6% were from Portuguese and the remaining 20% from other nationalities.
The population figures according to education in Andorra indicate that in 2017 1.7% of the population had no education, 23.3% had only primary education, 25.1% had secondary education, 17.3% had the Baccalaureate or Vocational Training of medium degree, 11.2% were from Higher Vocational Training or Selectivity, 7.9% had the first cycle of tertiary studies and 13.5% had the second cycle of tertiary studies.
Of the 11,383 school students 4,333 or 39% were in the Andorran educational system, 3,604 or 33% in the French educational system and 3,081 or 28% in the Spanish educational system.
By levels, 2,263 were in maternal education (kindergarten), 4,263 in primary education, 2,995 in secondary education, 1,058 in Bachillerato and 439 in vocational training.
As for the university population according to the countries of study, 490 were students from Andorra, 712 from Spain, 22 from France and 18 from other countries, the most prominent sector being social sciences, commercial education and law with more than 600 titled people.
Andorra grew in 2017 at a rate of 1.9%, the same as the previous year. By sectors, the figures indicate that the one that grew the most was «Commerce, Hospitality, Transport, Information and Communications» with 4.4%, and the second, Construction with 3.5%.
The third best stopped sector was Agriculture with a growth of 3.3% and the fourth the non-financial GVA with 3%. The next sector was that of services with 2.1%, the following that of "Public Administration, Education, Health, Social and personal services" with 1.4% the penultimate Financial, Real Estate, Professional and Technical with a 0.5% and the last one the Industry with 0.1%.
The population continues its boom since 2012 after the 2008 crisis, being the figure in 2017 as we have previously mentioned of 74,794 people. By parish, 30% is located in Andorra la Vella, 19% in Escaldes-Engordany, 15% in Encamp, 13% in La Massana, 12% in Sant Julià de Lòria, 6% in Ordino and the 5% in Canillo.
The average age of the population of Andorra is 40.7 years, lower than the EU average with 42.8 years, than France with 41.4 years, Spain with 43.2 years or Portugal with 44.4 years.
By nationality, 49.1% of the population was Andorran, 25.1% Spanish, 12.3% Portuguese, 4.3% French and the rest other nationalities up to more than 100 different.
According to the labor situation, of the total of 37,705 employees, 35% of people were in the private sector, 17% were retirees and pensioners, 8% salaried workers in the public sector, 4% self-employed, 4% businessmen, 19% students, 4% home teachers, 3% were on sick leave and 5% others.
The activity rate was, as we have said before, 80.6%, the unemployment rate of 2.4%, the occupancy rate of 78.7% and the inactivity rate of 19.4%.
By sector, 23.4% of employees belonged to vehicle trade and repair, 13.2% to real estate and business services, 13% worked in Hospitality, 11.6% in Public Administration and Security Social, 7.6% in construction, 5.3% in health and veterinary activities, 5% in the financial system, 3.8% in Industry and 3.3% in Transportation and communication, among others.
Inflation in 2017 was 2.6%, but varies according to the type of goods and services. Thus, health goods and services increased by 6.4%, transportation by 5.1%, recreation, entertainment and culture by 4.8%, food, beverages and tobacco by 4.1%, hotels, cafes and restaurants 2.2% and housing, water, gas and electricity 1.5%.
On the other hand, clothing and footwear (-4.7%), education (-2.4%), furniture and household utensils (-0.3%) and "miscellaneous goods and services" (-1 , 9%). The average price of housing rental was € 584.
The Central Administration of Andorra in 2017 entered 951.6 million euros. 391.1 of them came from taxes and fees, while 528.3 were from the acquisition of debt and financial assets. Finally, 32.2 million were from other income. On the other hand, it spent 956.8 million euros. 368.3 million were spent on current expenses, 542.5 million on debt amortization and asset acquisition and 46 million on capital expenses.
So that, as a net result the Central Administration of the Andorran state achieved 5.2 million surplus. As we see, solvent accounts (although with little surplus that year), something completely unthinkable in neighboring states.
The local or communal administrations entered 145.8 million euros, of which 74.9 were for taxes and fees and 71.7 for other income. Their total expenses were 138.1 million euros, of which 91.1 million were from current expenses, 24.1 from capital expenditure and 22.9 from debt amortization and asset acquisition. So, the commons obtained 7.7 million surplus.
And finally there is the Andorran Social Security Fund, formed by the CASS and the Retirement Reserve Fund, which in Andorra is still separate from the general budget.
Income was 344.5 million euros, of which 253.5 originated from social contributions and other rates, and 88.4 million from other income. Finally, 2.5 million were obtained from debt and financial assets.
As for expenses, they were 342.4 million euros. 245.5 million in current expenses, 48 in capital expenses and 48.9 in debt amortization and asset acquisition. So, the Social Security fund also had solid accounts with 2.1 million surplus.
Imports and exports
As we explain in our article about the advantages of Andorra, this is a country dedicated mostly to the service sector. Thus, the trade balance of goods is very unbalanced, since Andorra lives especially on tourism and shopping.
Thus, Andorra's imports in 2017 amounted to 1,307 million euros. By sector, 14.7% were food imports, 12.6% transport, 12.2% clothing and footwear, 10.1% pharmacy and perfumery, 10% industrial, 8.9% electronics, 8.2% beverages and tobacco, 7.7% fuels, 4.4% jewelry, 3.4% construction and 7.6% the rest.
On the other hand, exports amounted to 106.2 million euros. Of these, 34.2% were from the electronics sector, 19.8% from transport, 12.8% from jewelery, 9% from clothing and footwear, 8.6% from industry, 5, 2% construction, 0.4% beverages and tobacco and 8.3% the rest.
The number of companies in Andorra increased from 8,051 to 8,408 from 2016 to 2017. Of these, 86% were from the service sector, 7.6% from construction, 3.7% from industry and energy and 2.7% from the primary sector.
As for establishments, they increased 5.9% from 8,347 to 8,837 in 2017, the main sectors being Vehicle Trade and Repair (2,880), Real Estate and Rental Activities (2,187) Hospitality and restoration (1,029), and construction (795).
It should be noted that in Andorra, micro, small and medium-sized companies predominate. And is that by number of workers, 80.5% of companies have from 1 to 5 employees, 9.4% from 6 to 10 employees, 6.5% from 11 to 25 employees, 2.9% from 26 to 100 employees and only 0.7% have more than 100 employees.
In 2017 8,152,148 people visited the Principality of Andorra. Of these, 63.2% were hikers, which means that they did not stay overnight (they did not stay overnight in the country). On the other hand, 36.8% were tourists who spent one or more nights within the Principality.
Of all the overnight stays (different nights count twice) in Andorra 5,596,915 were in hotels1,368,062 in aparthotels, 254,140 in camping, 797,292 in the home of friends or family, 388,458 in own or rental housing and 333,571 in other types of accommodation.
As for the establishments, most of the 235 are hotels (171). By number of stars there are 12, 49, 103, 62 and 9 hotels with 1, 2, 3, 4 and 5 stars respectively. There are also 20 aparthotels, 27 tourist apartments, 11 hostels and 6 pensions.
Other tourist accommodation are furnished apartments. In Andorra there are 539 apartments and 2,659 one-star beds, 1,521 apartments and 7,527 two-star beds, 265 and 1,473 three-star and 47 and 307 four-star, for a total of 2,372 apartments and 11,966 beds. And finally 8 campsites, 28 mountain shelters, etc.
Continuing with the information provided by this report, the number of vehicles that entered Andorra in 2017 was 4,262,227. Of these, 32% entered through the border with France and 68% through the border with Spain.
Finally we have to make special mention of the ski slopes. The number of ski days sold in the Principality in 2017 amounted to almost two and a half million. Of the 318 skiable km in the Andorran Pyrenees, 210 are operated by the company Grandvalira at an average daily pass price of € 49. Of the rest, 93 km of slopes correspond to Vallnord, with 63 at its Pal-Arinsal station and 30 at Ordino-Arcalís station at € 38 a day. And finally there is the Naturlandia cross-country ski resort, with 15 km of skiable areas at € 30 per day.
Banking and financial system
The financial system of Andorra had 2,658 employees and 41 branches in 2017, almost the same as the previous year. Regarding economic aggregates, the balance was 14,145.4 million euros, gross loan investment was 5,982.8 million, managed resources were 46,138.1 million, customer deposits of 10,161.6 million and net profit of 131.3 million euros.
ROE went from 9.73% to 9.85%, ROA from 1.03% to 0.88%, the solvency ratio from 25.10% to 21.74%, the liquidity ratio from 61.41 % to 65.37 and that of efficiency from 59.98% to 68.05%.
Transport and telecommunications
In the same year in Andorra 4,552 vehicles were registered, leaving a total fleet of 57,074 passenger cars, 12,599 motorcycles, 2,472 mopeds, 4,588 vans and vans, 232 people transport vehicles, 839 trucks, 3,683 trailers and the like, 360 agricultural tractors, 490 snowmobiles and 2,042 special vehicles.
Regarding internet and telephony, in 2017 68,395,571 minutes of fixed telephony, 60,544,662 minutes of mobile telephony and 28,451,251 GB of fiber optic internet, which covers 100% of households in Andorra.
And so far, that's it. I hope that now you have a better idea elaborated with the data and numbers that represent Andorra.
We end as always remembering that if you want to settle in this beautiful little country of the Pyrenees and take advantage all its advantages (including taxation ones), you can contact us here. We collaborate with the best law firm in the country, with lawyers, prosecutors and accountants who are experts not only in offering professional tax, legal and accounting services in Andorra, but internationally. The best advice, consulting and management, the best office. As if that were not enough, we offer you comprehensive support during the process, from solving your doubts and questions and individualizing your case to guiding you in the daily life of the Principality.