Page 54 - economic report 2021

Chart 7.2
TRADE DEFICIT - Millions of euros

Imports Exports Def cit

Source: Department of Tax and Front ers and own preparat on.

€1,182.3 million, higher than in 2020 but
6.5% less than in 2019, before the outbreak TRADE OPENNESS (% of GDP)
of the pandemic. Chart 7.3

The described trend in trade flows led to a fall
in the trade openness ratio (trade-to-GDP-
ratio, the combined value of goods exports and
imports expressed as a percentage of GDP), as
52
foreign trade flows increased less than nominal
GDP (+11.2%). In 2021, the trade openness
ratio reached 52%, similar to the ratio in 2019
but lower than the 57.4% of 2020 (47.4% if
works of art and antiques are excluded).
(*) without works of art and ant ques the openness rat o would be 47.4%.
From a sectoral point of view, the degree of Source: Department of Tax and Front ers and own preparat on.
concentration of Andorran imports remained
high in 2021. The four sectoral groups that are
The Andorran economy: general developments | VII. The foreign sector
historically most important (food, transport material, machinery and electrical equipment, and
products of the chemical industries) represent 53.1% of Andorran imports, demonstrating the
high concentration in Andorran imports. For their part, exports are traditionally concentrated
in three main sectors (machinery and electrical equipment, transport material and optical,
photographic and precision apparatus) which,
in 2021, together represented 60.5% of total Imports and exports are st ll highly
exports, a considerably high percentage.
concentrated in a few sectors.
Note that part of the Andorran imports are
subsequently re-exported. In fact, looking at the top ten import and export chapters, there are
five matches: “motor vehicles”, “perfumery”, “electrical machinery and equipment”, “mechanical
apparatus” and “articles of apparel and clothing accessories, not knitted or crocheted”. This overlap
is considered to indicate so-called intra-industry trade or bidirectional trade (one country is both
exporter and importer of the same types of product), in which the added value generated in the
national economy or opportunism in commercial trading become essential factors and assets.

In the case of Andorra, this means products that allow international commercial trading with
significant differences in value between countries, which an intermediary can use to his advantage,