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Economy

Wed, 05/11/2008 - 17:10 — admin

Andorra has a developed economy, a free market with a per capita income above the European average and above the level of its neighbours, Spain and France.

The GDP of the Principality for 2010 was placed at 2,636 million euro; -1.9% less than the GDP recorded at the end of 2009 (2,686 million euro). This fall in GDP is principally due to contraction in the sectors of “Construction” (-17,8%), “Industry” (-3.2%), “Trade” (-1.0%) and “Finance” (-0.2%). There was a rise only in the sectors of “Transport and communications” (+6.1%) and “Public Administration” (+2.3%). 

The Andorran economy is undergoing a process of diversification focussed on services that are centred largely on the sectors of tourism, trade, property and finance.  However, the trade and tourism sectors have experienced a certain slow-down in growth.   

To provide incentives for growth and diversification in the economy, the Andorran Government, since 2006, drived through an economic reform. The General Counsel (Parliament) approved three main regulations to complement the first phase of economic openness:  The law of Companies (October 2007), the Law of Business Accounting (December 2007) and the Law of Foreign Investment (April 2008). These regulations establish a transparent, modern and internationally comparable regulatory framework.

In order to develop this strategic plan, the Government created Andorra Development and Investment to act as a catalyst for the private sector and to diversify the economy with the creation of value-added service businesses. 

More information about macroeconomic statistics at 

http://www.estadistica.ad/serveiestudis/publicacions/Publicacions/Andorra%20en%20Xifres_ang.pdf.