High up in the Pyrenees mountains lies the tiny principality of Andorra. Legend says it has been independent since the times of the emperor Charlemagne, nearly 1200 years ago.
One of the smallest countries in the world, Andorra is made up of six parishes, each in its own separate valley. Winters are cold and summers mild and sunny in the mountainous countryside where the peaks reach heights of up to 3000m. Herds of sheep and goats graze the mountainsides while tobacco, wheat, rye and potatoes are grown on the valley floors. Cigarettes are made locally. There is little industry but power is plentiful from small hydroelectric schemes.
{\B}Cheap shopping{\n}
Andorra is very popular with tourists who come to ski in the winter and hike across the mountains in summer. They are also attracted by its low taxes - in the markets, no duty is added to the goods, making them much cheaper than in neighbouring France and Spain. More than 10 million people a year visit the principality for holidays and to look for bargains. Most Andorrans are Roman Catholics and speak Catalan (the official language). This is also the language of the adjoining Spanish region of Catalonia. Andorra is semi-independent under the joint control of the President of France and the Bishop of Urgel. Urgel is a town just over the border in Spain and its diocese includes Andorra. A council of 24 members, elected by heads of families in the six valleys, runs the affairs of state, such as they are. The capital, Andorra-la-Vella, after all, is hardly more than a village of 15,000 people.
{\I}conventional long form:{\N} Principality of Andorra
{\I}conventional short form:{\N} Andorra
{\I}local long form:{\N} Principat d'Andorra
{\I}local short form:{\N} Andorra
{\B}Digraph:{\N} AN
{\B}Type:{\N} parliamentary democracy (since March 1993) that retains as its heads of state a co-principality; the two princes are the president of France and Spanish bishop of Seo de Urgel, who are represented locally by officials called veguers
{\B}Capital:{\N} Andorra la Vella
{\B}Administrative divisions:{\N} 7 parishes (parroquies, singular - parroquia); Andorra, Canillo, Encamp, La Massana, Les Escaldes, Ordino, Sant Julia de Loria
{\B}Independence:{\N} 1278
{\B}National holiday:{\N} Mare de Deu de Meritxell, 8 September
{\B}Constitution:{\N} Andorra's first written constitution was drafted in 1991; adopted 14 March 1993
{\B}Legal system:{\N} based on French and Spanish civil codes; no judicial review of legislative acts; has not accepted compulsory ICJ jurisdiction
{\B}Overview:{\N} Tourism, the mainstay of Andorra's economy, accounts for roughly 80% of GDP. An estimated 13 million tourists visit annually, attracted by Andorra's duty-free status and by its summer and winter resorts. 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; it is unclear what effect the European Single Market will have on the advantages Andorra obtains from its duty-free status.
{\B}National product:{\N} GDP - purchasing power parity - $760 million (1992 est.)
{\B}National product real growth rate:{\N} NA%
{\B}National product per capita:{\N} $14,000 (1992 est.)
{\B}Inflation rate (consumer prices):{\N} NA%
{\B}Unemployment rate:{\N} 0%
{\B}Budget:{\N}
{\I}revenues:{\N} $138 million
{\I}expenditures:{\N} $177 million, including capital expenditures of $NA (1993)
