Andorra

About Andorra

Background:

For 715 years, from 1278 to 1993, Andorrans lived under a unique co-principality, ruled by French and Spanish leaders (from 1607 onward, the French chief of state and the Spanish bishop of Seu d'Urgell). In 1993, this feudal system was modified with the titular heads of state retained, but the government transformed into a parliamentary democracy. For decades Andorra enjoyed its status as a small refuge of fiscal and banking freedom and benefitted from Spanish and French tourists attracted to the country's duty-free shopping. The situation has changed in recent years as Andorra started to tax foreign investment and other sectors. Tourism accounts for over 80% of Andorra's gross domestic product.

PEOPLE

Population:
country comparison to the world: 198

Nationality:
noun: Andorran(s)
adjective: Andorran

Ethnic groups:
Spanish 43%, Andorran 33%, Portuguese 11%, French 7%, other 6% (1998)

Religions:
Roman Catholic (predominant)

Languages:
Catalan (official), French, Castilian, Portuguese

GOVERNMENT

Country name:
conventional long form: Principality of Andorra
conventional short form: Andorra
local long form: Principat d'Andorra
local short form: Andorra

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 Seu d'Urgell, Spain, who are represented in Andorra by the coprinces' representatives.

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.

Independence:
1278 (formed under the joint suzerainty of the French Count of Foix and the Spanish Bishop of Urgel)

Flag description:
three vertical bands of blue (hoist side), yellow, and red, with the national coat of arms centered in the yellow band; the latter band is slightly wider than the other two so that the ratio of band widths is 8:9:8; the coat of arms features a quartered shield with the emblems of (starting in the upper left and proceeding clockwise): Urgell, Foix, Bearn, and Catalonia; the motto reads VIRTUS UNITA FORTIOR (Strength United is Stronger); the flag combines the blue and red French colors with the red and yellow of Spain to show Franco-Spanish protection
note: similar to the flags of Chad and Romania, which do not have a national coat of arms in the center, and the flag of Moldova, which does bear a national emblem.

ECONOMY

Economy - overview:
Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for more than 80% of GDP. An estimated 11 million tourists visit annually, attracted by Andorra's duty-free status for some products and by its summer and winter resorts. Andorra's comparative advantage eroded when the borders of neighboring France and Spain opened, 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.

GDP (purchasing power parity):
$4.22 billion (2008)
country comparison to the world: 164
$3.66 billion (2007)
$3.588 billion (2006)

GDP - per capita (PPP):
$44,900 (2008)
country comparison to the world: 12
$42,500 (2007) $38,800 (2005)

Budget:
revenues: $531.6 million
expenditures: $531.6 million (2008)

Inflation rate (consumer prices):
2.3% (2008)
country comparison to the world: 72
3.9% (2007)

Industries:
tourism (particularly skiing), cattle raising, timber, banking, tobacco, furniture

Exports:
$89.5 million (2008)
country comparison to the world: 193
$117.1 million (2007)

Imports:
$1.801 billion (2008)
country comparison to the world: 153
$1.789 billion (2007)

Exchange rates:
euros (EUR) per US dollar - 0.7338 (2009), 0.6827 (2008), 0.7306 (2007), 0.7964 (2006), 0.8041 (2005)