The economy of Andorra is a developed, free-market economy with a GDP of $4.53 billion. It is the smallest country in Europe and the only one that does not use its own currency. The official currency is the Euro, and Andorra has adopted many of the European Union’s economic policies. The main industries in Andorra are tourism, banking and financial services, retail, construction, and manufacturing.
According to cheeroutdoor, tourism is by far the largest contributor to Andorran GDP, accounting for over 80% of economic activity in the country. Tourists come from all over the world to take advantage of Andorra’s ski resorts, mountain scenery and tax-free shopping opportunities. Retail is another significant industry due to its proximity to both Spain and France which allows it to benefit from low taxes on imported goods as well as providing plenty of shopping options for tourists.
The banking sector also plays an important role in Andorran economy with numerous banks operating within its borders offering a range of services such as wealth management, investment funds and private banking services. Financial services also generate significant revenue for the country through taxation on profits earned by foreign companies operating within its borders or foreign investors taking advantage of low taxes when investing in local businesses or property markets.
Construction is another key industry which generates employment opportunities as well as contributing significantly to GDP due to continued investment into infrastructure projects such as roads or modernizing existing buildings throughout the country. Manufacturing also plays a role with products such as electronics or medical equipment being produced within its borders or imported from abroad for sale locally or export abroad.
Andorra has seen strong economic growth over recent years due to increased foreign investment into sectors such as tourism or financial services which have created employment opportunities or increased disposable incomes through taxation revenues generated by these industries.
According to COUNTRYAAH, on 2 February 1993, the General Council was able to adopt a new constitution. This states in the first paragraph that Andorra is an independent, democratic and social rule of law, where the political system is, in accordance with tradition, an “institutionalized parliamentary co-principality”. The co-princes are jointly and inseparably heads of state and are the bishop of Urgell and the French president. On July 27 of that year, abbreviated as AND by abbreviationfinder.org, the country of Andorra was admitted to the UN, and on November 10, 94, it was admitted as the 33rd State of the Council of Europe.
Note: the capital city of Andorra is Andorra la Vella with a population of 25,200 (Estimated 2008). Other major cities include Les Escaldes with a population of 16 400, Encamp with a population of 14 900 (estimate 2008).
At the first parliamentary elections on December 12, 1994, Oscar Ribas Reig was re-elected, but he resigned on November 25, the following year, when he lost his majority ifbm. the negotiations for a new Finance Act. On December 7, he was replaced as head of government by the leader of the liberal group, Marc Forné. He was elected with 15 votes, and 13 blank.