Economic Overview
Tourism, the mainstay of andorra's tiny, well-to-do economy, accounts for more than 80% of gdp. an estimated 11.6 million tourists visit annually, attracted by andorra's duty-free status and by its summer and winter resorts. andorra's comparative advantage has recently eroded as the economies of neighboring france and spain have been opened up, providing broader availability of goods and lower tariffs. the banking sector, with its partial "tax haven" status, also contributes substantially to the economy. agricultural production is limited - only 2% of the land is arable - and most food has to be imported. the principal livestock activity is sheep raising. manufacturing output consists mainly of cigarettes, cigars, and furniture. andorra is a member of the eu customs union and is treated as an eu member for trade in manufactured goods (no tariffs) and as a non-eu member for agricultural products.
Environmental Issues
Deforestation; overgrazing of mountain meadows contributes to soil erosion; air pollution; wastewater treatment and solid waste disposal
Government Type
Parliamentary democracy (since march 1993) that retains as its chiefs of state a coprincipality; the two princes are the president of france and bishop of seo de urgel, spain, who are represented locally by coprinces' representatives
Population
82,627 (july 2008 est.)
Location
Southwestern europe, between france and spain
Area
Total: 468 sq km
land: 468 sq km
water: 0 sq km
2.5 times the size of washington, dc
Country Aliases
Conventional long form: principality of andorra
conventional short form: andorra
local long form: principat d'andorra
local short form: andorra
Capital
Name: andorra la vella
geographic coordinates: 42 30 n, 1 31 e
time difference: utc+1 (6 hours ahead of washington, dc during standard time)
daylight saving time: +1hr, begins last sunday in march; ends last sunday in october
International Disputes
None
Sources: Central Intelligence Agency (CIA)
