Andorra, among the richest countries in Europe
Andorra's economy has not only shown great resilience in the face of the global challenges of recent years but also a remarkable strength that has made it one of Europe's most prosperous countries. Currently, the Principality ranks 13th among the richest countries in Europe, surpassing major powers such as the United Kingdom and France. The gap with Spain has widened considerably, and Andorra's GDP per capita is already more than 20% higher than its southern neighbour.
According to data published by the Department of Statistics of the Government of Andorra, nominal GDP in 2023 was 3,500.6 million euros, reflecting a year increase of 9%. In real terms, GDP will reach 2,891 million euros, showing an annual growth of 2.6%. In terms of GDP per capita, it stood at 40,511 euros in 2023, an increase of 3% over the previous year.
Additionally, the rating agency Standard & Poor’s has maintained Andorra's credit rating at A-/A-2 with a positive outlook.
The key sectors of the Andorran economy
Tourism continues to be the main driver of Andorra's economy, generating over 80% of GDP. Ski resorts attract millions of visitors during the winter, while nature activities, hiking and sporting and cultural events boost tourism during the other seasons. With approximately 8 million annual visitors, Andorra maintains an exceptional proportion of tourists compared to its population of just over 80,000 inhabitants.
The financial sector has undergone a profound transformation over the last decade. The reforms implemented to adapt to international transparency standards have strengthened confidence in the banking system. These reforms, combined with attractive taxation and a stable environment, have made the country a hotspot for investors and companies seeking to establish themselves in a safe and modern environment.
Trade continues to be a pillar of the economy, thanks to its competitive offerings and tax differential compared to neighbouring countries. However, the dynamics of the sector have shifted with the rise of e-commerce and the implementation of stricter European regulations, driving the digitisation of local businesses to maintain their competitiveness.
Perspectives and economic sustainability
Andorra stands out as one of the countries with a GDP per capita above the European Union average, thanks to its solid economic growth and stability. With a positive credit rating, ongoing structural reforms and a diversified economy, the country has established itself as an attractive destination for investors and residents who value quality of life in a safe and prosperous environment.
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