Editing Andorra (section)

==Economy==
{{Main|Economy of Andorra}}

Tourism, the mainstay of Andorra's economy, accounts for roughly 80% of GDP. An estimated 8&nbsp;million tourists visit annually,<ref name="es2" /> attracted by Andorra's [[duty-free shopping|duty-free]] status and by its summer and winter resorts.

One of the main sources of income in Andorra is from ski resorts, which total over {{convert|175|km|0|abbr=on}} of ski grounds. The sport brings in over 7 million visitors annually and an estimated 340&nbsp;million euros per year, sustaining 2,000 direct and 10,000 indirect jobs at present since 2007.<ref>{{cite web|url=http://offshorelicense-regulatory.com/about-andorra/|title=About Andorra – Valsen Fiduciaries|website=Offshorelicense-regulatory.com|access-date=26 March 2019|archive-date=6 May 2019|archive-url=https://web.archive.org/web/20190506122108/https://www.offshorelicense-regulatory.com/about-andorra/}}</ref>

The banking sector, with its [[tax haven]] status, also contributes substantially to the economy with revenues raised exclusively through import tariffs (the financial and insurance sector accounts for approximately 19% of GDP<ref name="fs2013">{{cite web|url=http://www.aba.ad/pub/publicaciones/financial_system_2013.pdf|title=Andorra and its financial system 2013|publisher=Aba.ad|access-date=14 May 2015|archive-url=https://web.archive.org/web/20151214121805/http://www.aba.ad/pub/publicaciones/financial_system_2013.pdf|archive-date=14 December 2015}}</ref>). However, during the [[European sovereign-debt crisis]] of the 21st century, the tourist industry suffered a decline, partly caused by a drop in the prices of goods in Spain, undercutting [[duty-free shop]]ping and increasing unemployment. On 1 January 2012, a business tax of 10% was introduced,<ref>{{cite web|title=Andorra gets a taste of taxation|url=https://www.theguardian.com/world/2011/dec/27/andorra-financial-crisis-tax|work=The guardian|access-date=30 March 2013|date=27 December 2011}}</ref> followed by a sales tax of 2% a year later, which raised just over 14 million euros in its first quarter.<ref>{{cite news|title=Andorra Unveils First Indirect Tax Revenue Figures|url=http://www.tax-news.com/news/Andorra_Unveils_First_Indirect_Tax_Revenue_Figures____60703.html|newspaper=Tax News|date=9 May 2013|access-date=2 June 2013|archive-date=5 December 2020|url-status=usurped|archive-url=https://web.archive.org/web/20201205013920/https://www.tax-news.com/news/Andorra_Unveils_First_Indirect_Tax_Revenue_Figures____60703.html}}</ref>

Agricultural production is limited; only 1.7%<ref>{{Cite web|title=Andorra Arable land as a share of land area, 1960-2020 - knoema.com|url=https://knoema.com//atlas/Andorra/topics/Land-Use/Area/Arable-land-as-a-share-of-land-area|access-date=2021-04-14|website=Knoema|language=en-US}}</ref> of the land is arable, and most food has to be imported. Some tobacco is grown locally. The principal livestock activity is domestic sheep raising. Manufacturing output consists mainly of cigarettes, cigars, and furniture. Andorra's natural resources include hydroelectric power, mineral water, timber, iron ore, and lead.<ref name="cia">{{Cite CIA World Factbook|country=Andorra|access-date=26 August 2012}}</ref>

Andorra is not a member of the European Union, but enjoys a [[Andorra–European Union relations|special relationship]] with it, such as being treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products. Andorra lacked a currency of its own and used both the [[French franc]] and the [[Spanish peseta]] in banking transactions until 31 December 1999, when both currencies were replaced by the EU's single currency, the euro. Coins and notes of both the franc and the peseta remained legal tender in Andorra until 31 December 2002. Andorra negotiated to issue its own euro coins, beginning in 2014.

Andorra has historically had one of the world's lowest unemployment rates. In 2023 it stood at 1.5%.<ref>{{Cite web |date=2023-12-05 |title=Is there unemployment in Andorra? All about employment and unemployment [2023] |url=https://andorrainsiders.com/en/there-is-unemployment-in-andorra-everything-about-employment-and-unemployment/#:~:text=With%20an%20employment%20rate%20of%2083.0%25%20in%20the,and%20sustain%20a%20healthy%20and%20dynamic%20labor%20market. |access-date=2024-10-12 |website=andorrainsiders.com |language=en-US}}</ref>

On 31 May 2013, it was announced that Andorra intended to legislate for the introduction of an income tax by the end of June, against a background of increasing dissatisfaction with the existence of tax havens among EU members.<ref>{{cite news|title=Andorra to introduce income tax for first time|url=https://www.bbc.co.uk/news/business-22745895|newspaper=BBC News|date=2 June 2013}}</ref> The announcement was made following a meeting in Paris between the Prime Minister [[Antoni Martí]] and the French President and Prince of Andorra [[François Hollande]]. Hollande welcomed the move as part of a process of Andorra "bringing its taxation in line with international standards".<ref>{{cite news|url=http://www.notretemps.com/argent/andorre-aligne-progressivement-sa,i29431|title=Andorre aligne progressivement sa fiscalité sur les standards internationaux (Elysée)|newspaper=Notre Temps|date=31 May 2011|archive-url=https://web.archive.org/web/20130616031601/http://www.notretemps.com/argent/andorre-aligne-progressivement-sa,i29431|archive-date=16 June 2013}}</ref>

By the mid-2010s, the financial system comprised five banking groups,<ref>{{cite web|url=http://thebanks.eu/banks-by-country/Andorra |title=List of Banks in Andorra |publisher=Thebanks.eu |access-date=14 May 2015}}</ref> one specialised credit entity, eight investment undertaking management entities, three asset management companies, and 29 insurance companies, 14 of which are branches of foreign insurance companies authorised to operate in the principality.<ref name="fs2013"/> The last mergers between banks took place in 2022, bringing the Andorran financial sector to currently have 3 active banking groups.<ref>{{Cite web |title=Banks in Andorra – Open a bank account in Andorra |url=https://www.andorra-solutions.com/banks-in-andorra/ |access-date=2023-01-23 |website=Andorra Solutions |language=en-US}}</ref>