Business and Economics
Livestock management and agriculture (cereals, potatoes, tobacco and vegetables), combined with smuggling, have long been the dominant sources of income. But now it is mainly tourism that forms the basis of the country’s economy. It has also grown up some industry, which accounts for 31 percent of employment. Tobacco products, clothing, furniture, jewelry and ceramics are exported. The country has no income tax; government revenue comes from excise taxes, mainly on energy imports. According to countryaah, the duty-free trade, which was previously significant, ceased in 1993 after agreement with the EU. Until the end of the 1990s, Andorra was known as a tax haven with strict banking secrecy and no income or corporate tax. A corporate tax was introduced in 2007 and then a number of economic reforms were implemented to further increase transparency in the financial sector.
Most of the energy demand is covered by imports from France and Spain; About 15 percent are produced with hydroelectric power plants (2009). Andorra has some raw material resources in the form of iron ore, lead and aluminum.
Tourism and gastronomy
Andorra’s economy is largely based on tourism. Previously one-day visits dominated, but the country’s geographical location allows for both winter and summer activities, and now is consciously invested in an expansion of the facilities – this as a complement to the traditional image of Andorra as a single long business street lined with international boutiques. Intensive international marketing should also attract long-distance travelers and long-term visitors.
The kitchen is strongly internationalized, with emphasis on French and Spanish cuisine. The restaurant industry is well developed, and Catalan specialties can also be found.