Wednesday, July 28, 2010

Economy of Andorra

Economy of Andorra
The economy of Andorra is governed by the tourism industry, which roughly accounts for 80% of GDP. All in all, Andorra is well-to-do state, where over 9 million tourists drop in annually, attracted by the country's duty-free status and its summer and winter resorts. While the banking sector, with its "tax haven" status, contributes substantially to the economy, agricultural production is limited as 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 economy

Economy—overview: Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for roughly 80% of GDP. An estimated 10 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 "tax haven" status, also contributes substantially to the economy. Agricultural production is limited by a scarcity of arable land, and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing 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.

Tuesday, February 16, 2010

Principality of Andorra

Andorra /ænˈdɒrə/ (help·info), officially the Principality of Andorra (Catalan: Principat d'Andorra), also called the Principality of the Valleys of Andorra, is an independent microstate in southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is the sixth smallest nation in Europe having an area of 468 km2 (181 sq mi) and an estimated population of 83,888 in 2009. Its capital is Andorra la Vella. The official language is Catalan, although Spanish, French, and Portuguese are also commonly spoken.

The Principality was formed in 1278, and sovereignty is shared between the President of the French Republic and the Bishop of Urgell, Catalonia, Spain. It is a prosperous country mainly because of its tourism industry, which services an estimated 10.2 million visitors annually, and also because of its status as a tax haven. It is not a member of the European Union, but the euro is the de facto currency. The people of Andorra have the 2nd highest human life expectancy in the world — 82 years at birth

Source:en.wikipedia.org/