Andorra profile

Demography and Health

Andorra has a population of about 81,938 people as of 2024, making it one of the smallest sovereign states by population but notable for its high income and services-oriented economy. The demographic dynamics show a low birth rate of 6.86 births per 1,000 people in 2023 and a death rate of 6.08 deaths per 1,000 people in the same year, resulting in a modest natural increase that is largely aligned with a country that has a long life expectancy. Indeed, life expectancy at birth stands at 84.0 years (2023), ranking among the higher ends globally, underscoring good health outcomes and effective public health systems. The under-5 mortality rate is very low at 2.6 per 1,000 live births, reinforcing the impression of strong pediatric and maternal care. Net migration in 2024 is 988 people, which, for a small population, is a meaningful positive contribution to population growth and can influence the cultural and skilled labor composition of the country. With a total population under 100 thousand, Andorra faces the governance and service delivery challenge of delivering high-quality public services efficiently to a small, dispersed demographic that still exhibits significant urban and cross-border interaction in the Pyrenees. The combination of longevity, low child mortality, and a positive but modest natural growth suggests a stable population base that supports long-term public planning, health financing, and social welfare policies. Internet usage is exceptionally high, with 95.4% of the population online in 2023, indicating broad digital inclusion that can amplify health information access, telemedicine, and public health communication. Public health expenditure is robust: current health expenditure accounts for 7.93% of GDP in 2023, and domestic general government health expenditure per capita, purchasing power parity adjusted, is 4,012 international US dollars, illustrating substantial government prioritization of health services alongside a wealthy economy.

Economy

Andorra’s economy is characterized by high income and a strong service sector, as reflected by a GDP per capita of 49,304 current US dollars in 2024 and a GDP per capita (PPP) of 74,939 international dollars, placing it among higher-income economies on a per-person basis. The wealth level is underscored by a substantial current account surplus of 14.2% of GDP in 2023, indicating that the country earns enough from its services and external transactions to fund domestic investment and consumption while maintaining financial stability. High-technology exports amounted to about 51.38 million US dollars in 2023, a sizable figure given the small population, though the official rank of 92 suggests that, globally, these exports are modest relative to larger economies; nevertheless, the data point highlights a presence of technologically sophisticated goods within the economy. R&D activity, as reflected by patent activity, shows residents filing 3 patent applications in 2021, which signals a relatively limited domestic innovation footprint, consistent with a small, services-based economy that relies more on cross-border knowledge and niche capabilities than on large-scale in-house R&D machinery. The long-run income level supports high private consumption and government capacity to finance social and infrastructural programs. Population size—about 81,900 people in 2024—means that even modest absolute outputs translate into strong per-capita indicators, while the reliance on a narrow set of tradable services necessitates maintaining competitive regulatory and business environments to attract and retain inputs, talent, and investment. The net migration figure of 988 in 2024 also feeds into the economy by supplying labor and skills and by supporting domestic demand in a compact market.

Trade and Investment

In trade and investment terms, Andorra maintains a strong external balance with a current account surplus of 14.2% of GDP in 2023, signaling that the country earns sufficiently from its export of services and other inflows to fund imports and capital formation. The economy’s high per-capita wealth and favorable governance indicators create a supportive environment for both domestic and foreign investment, even though the absolute patent activity remains modest (3 resident patent applications in 2021), indicating room to diversify innovation and R&D beyond current endeavors. High-technology exports, totaling about 51.38 million US dollars in 2023, point to a capability to produce and export technologically advanced goods, but the 92nd rank suggests that, in a global context, the scale is small relative to larger economies. The small size of the economy means that investment decisions are disproportionately impactful; thus, a favorable current account position, combined with strong regulatory and governance indicators, helps create a predictable environment for financial and service-sector investment. The positive net migration also contributes to the labor market and consumer demand, reinforcing the economy’s capacity to support sustained growth in high-value services.

Governance and Institutions

Andorra displays robust governance and institutional quality by international indicators. Political stability and absence of violence or terrorism score 1.58 in 2023, with a rank of 3, signaling a highly stable political environment. Regulatory quality is 1.35, ranked 22, reflecting credible and efficient regulatory frameworks that support commercial activity and public service delivery. The rule of law indicator stands at 1.48 with a rank of 18, indicating a solid legal framework that upholds contracts and upholds public commitments. Control of corruption is 1.25, ranked 27, suggesting that while corruption isn’t a dominant constraint, there is room for improvement in certain areas of governance. Government effectiveness is 1.48, ranking 19, which points to a capable public sector capable of delivering services and implementing policy. Taken together, these governance metrics imply a high-quality, credible institutional environment for households and businesses alike, underpinned by political stability, predictable regulation, and effective public administration. The small, cohesive state structure can magnify the benefits of these governance outcomes, enabling efficient public service delivery and the execution of capital-intensive projects necessary to sustain a high standard of living. The overall governance mix indicates resilience and a favorable policy climate, though ongoing attention to corruption risks and administrative capacity remains prudent as the economy remains small and highly open.

Infrastructure and Technology

Andorra benefits from advanced digital and physical infrastructure that supports a high level of internet connectivity and technology-driven service delivery. The share of individuals using the Internet is 95.4% of the population in 2023, ranking 18th globally, which indicates near-universal access to digital networks and a strong platform for e-government services, online commerce, and remote work. The combination of high internet penetration with strong governance and stability creates favorable conditions for digital innovation and the expansion of online public services. In industry terms, high-technology exports are substantial in absolute terms (about 51.38 million US dollars in 2023), signaling a capacity to participate in technologically advanced supply chains, even if the absolute scale is modest by larger economies. Patent activity by residents is low (3 in 2021), which points to limited domestic R&D output; this underscores opportunities to broaden innovation capacity by attracting talent and investment in research and development, or by leveraging foreign R&D networks to diversify technologically driven growth. Climate and energy infrastructure are linked to energy management practices; renewable energy use represents 18.7% of total final energy consumption in 2022, suggesting progress toward cleaner energy choices, although further expansion of renewables could bolster energy security and reduce exposure to external energy price fluctuations. Overall, Andorra’s infrastructure and technology profile combines high digital inclusion, modest but meaningful high-tech activity, and energy transition progress that can be scaled with targeted policy and investment.

Environment and Sustainability

From an environmental perspective, Andorra’s renewable energy consumption accounts for 18.7% of total final energy consumption in 2022, highlighting ongoing efforts to diversify away from fossil fuels and enhance energy resilience in a mountainous economy that experiences seasonal demand shifts. This level of renewables, while meaningful, indicates substantial room for expansion—an objective that would align with its high-income status and governance capacity to absorb large-scale infrastructure investments. The mountainous terrain and alpine climate shape environmental policy priorities, including safeguarding water resources, maintaining biodiversity, and supporting sustainable winter tourism. As a small, landlocked country with high energy and transport needs concentrated in a narrow geographic area, policy emphasis on renewable energy, energy efficiency, and climate adaptation will be crucial to maintaining environmental quality while supporting economic activity. The combination of elevated life expectancy and strong health outcomes further underscores the value of sustainable development, as a healthy population benefits from cleaner energy and healthier ecosystems. While the data show progress in renewable adoption, continued investment in renewables—potentially complemented by hydropower, wind, or other clean sources—could further reduce energy import dependence and lower exposure to global energy volatility, contributing to long-term environmental and economic resilience.