The economy of Andorra is a developed and free market economy driven by finance, retail, and tourism. The country's gross domestic product (GDP) was US$6.00 billion in 2024. Attractive for shoppers from France and Spain as a free port, Andorra also has developed active summer and winter tourist resorts. With some 270 hotels and 400 restaurants, as well as many shops, the tourist trade employs a growing portion of the domestic labour force. An estimated 10 million tourists visit annually.
There is a fairly active trade in consumer goods, including imported manufactured items, which, because they are duty-free, are less expensive in Andorra than in neighboring countries. Andorra's duty-free status also has had a significant effect on the controversy concerning its relationship with the European Union (EU). Its negotiations on duty-free status and relationship with the EU began in 1987, soon after Spain joined. An agreement that went into effect in July 1991 sets duty-free quotas and places limits on certain items – mainly milk products, tobacco products and alcoholic beverages. Andorra is permitted to maintain price differences from other EU countries, and visitors enjoy limited duty-free allowances.
The results of Andorra's elections thus far indicate that many support the government's reform initiatives and believe the country must, to some degree, integrate into the European Union in order to continue to enjoy its prosperity. Although arable land comprises less than 2% of the country, agriculture was the mainstay of the Andorran economy until the upsurge in tourism. Sheep raising has been the principal agricultural activity, but tobacco growing is lucrative. Most of Andorra's food is imported. (Full article...)
Image 9Manor house of the Rossell family in Ordino, Casa Rossell, built in 1611. The family also owned the largest ironwork forges in Andorra as Farga Rossell and Farga del Serrat. (from Andorra)
Image 20Enthronement as Co-Prince in 1942 of Bishop Ramón Iglesias (centre). The local comite was led by Francesc Cairat (left), the First General Syndic with the longest regencie, from 1936 to 1960. (from Andorra)
Image 21Andorran flag on a balcony, Ordino (from Andorra)
Image 29A train at Latour-de-Carol (La Tor de Querol), one of the two stations serving Andorra. Andorra has no railways, although the line connecting Latour-de-Carol and Toulouse, which in turn connects to France's TGVs at Toulouse, runs within two kilometres (1.2 miles) of the Andorran border. (from Andorra)
Image 30The town of Encamp, as seen from the Vall dels Cortals (from Andorra)