Economic Activities in Andorra: Primary, Secondary, Tertiary, and Quaternary

As of 2024, Andorra has a population of approximately 81,938 and is ranked 178th in the world, just behind Antigua and Barbuda. Located in Europe, it covers an area of 470 square kilometers, ranking 172nd globally, right below Singapore.

As of 2024, Andorra’s GDP stood at approximately $4.04 billion (World Bank), up from about $3.35 billion in 2022. Its GDP per capita reached roughly $49,304 in 2024, among the higher figures in Europe, reflecting the country’s small population and prosperous, services-driven economy.

Despite its small size, Andorra’s economy remains stable and prosperous, with a focus on tourism, retail, and finance sectors contributing significantly to its overall economic growth.

Andorra Economic Structure & Sector Analysis

• Primary activities: 11.9% of GDP.
• Secondary activities: 33.6% of GDP.
• Tertiary activities: 54.5% of GDP.

Primary Sector of Andorra

With 39.91% of the country’s land dedicated to agriculture, Andorra produces small quantities of rye, wheat, barley, oats, vegetables, tobacco, sheep, and cattle.

Despite contributing 11.9% to the GDP, agriculture plays a crucial role in the economy by providing a variety of crops and animal products. The diverse range of agricultural products showcases the sector’s importance, highlighting the self-sufficiency and traditional practices that sustain Andorra’s agricultural sector.

The country’s primary sector thrives on hydropower, mineral water, timber, iron ore, and lead. These resources drive the economy through energy production, tourism, and manufacturing, contributing significantly to the country’s economic growth and sustainability.

Secondary Sector of Andorra

In Andorra, the main industrial products are skiing equipment, timber, and furniture. The country’s economy benefits from these industries through domestic sales and exports.Manufactures play a pivotal role in Andorra’s total exports, accounting for a significant 94.99% in 2023. This underscores their crucial contribution to the country’s economy and global trade relations.

Tertiary sector of Andorra

The tertiary sector in Andorra encompasses services that provide intangible goods like advice, expertise, and knowledge to enhance productivity and meet needs. Main activities include restaurants, healthcare, education, banking, communication, media, tourism, transportation, and telecommunications. These sectors play a crucial role in Andorra’s economy by catering to both consumer and business needs.In particular, Andorra’s economy heavily relies on tourism. As of 2024, the country recorded roughly 4.17 million overnight tourists plus about 5.48 million same-day visitors, for a total of around 9.65 million visitor arrivals, surpassing its population well over 100 times. Popular destinations like the Madriu-Perafita-Claror Valley, a UNESCO World Heritage Site, and the Caldea Spa Complex attract numerous visitors, making tourism a vital economic pillar for this small nation.Another example of tertiary economic activity is the mobile cellular sector, with 114,000 subscriptions, equating to 142 per 100 inhabitants. This connectivity fosters technological growth, enhancing communication and innovation.

International Trade of Andorra

Import Activities of Andorra

Andorra’s import activities are of high importance, with total imports in 2023 amounting to 59% of its GDP.Andorra’s main import partners are Spain (66%), France (12%), Germany (4%), China (3%), and Italy (3%). The country mainly imports cars, refined petroleum, garments, electricity, and beauty products.

Exports Activities of Andorra

Andorra’s export activities in 2023 totaled $252,365,105.054, representing 7.53% of its GDP. With a low importance level, diversification and growth in exports are crucial for economic resilience.Andorra primarily exports paintings, integrated circuits, cars, orthopedic appliances, and garments. Its main export partner is Spain, which accounts for 73% of its exports, followed by France at 6%, the UK at 3%, the US and Germany at 2% each.

Andorra economy challenges in 2024

In 2024, Andorra faces challenges despite its high GDP and low unemployment. The country, a non-EU Euro user, struggles to recover from the impact of COVID-19 on its tourism industry. Seeking big tech investments, Andorra aims to strengthen its modern financial sector. As a new member of SEPA and IMF, the country navigates its co-principality status between Spain and France, striving for economic growth amidst global uncertainties.

Sources

• World Bank Data
• IMF Data Mapper
• Kaggle Datasets
• Heritage Foundation: Index of Economic Freedom
• CIA World Factbook: Agricultural Products
• Our World in Data: Human Development Index
• UN Comtrade Plus: Trade Flow
• Data.World: Country Travel Information
• sipri

Last updated: August 2026