Andorra

Andorra is

Overview
Andorra is a landlocked country in the Pyrenees mountain range between Spain and France. It is the fifth-smallest country in Europe by both area and population (approximately 468 square kilometres in size; population in 2012 of 85,082). One-third of the population are Andorran citizens and eligible to vote. The dominant ethnic group is Spanish (43 per cent), followed by Portuguese (11 per cent) and French (7 per cent). The official language is Catalan, with French and Spanish widely spoken. Roman Catholicism is the predominant religion.

Effects of the Eurozone Financial Crisis
Andorra is prosperous, with a standard of living roughly equivalent to Finland. Finance accounts for 15-18 per cent of GDP, but tourism is the mainstay of the economy, representing over 80 per cent of Andorra's GDP. Approximately 9 million people visit Andorra each year. Andorra's earlier status as a premier duty-free shopping destination has somewhat declined, with the liberalisation of the French and Spanish economies. Although Andorra does not have its own railway or airport, it remains a popular destination for skiing and is noted for its summer and winter resorts.

As only 2 per cent of Andorra's land is arable, it relies heavily on imports of food and other goods. Spain and France are its main trading partners. Spain buys nearly 70 per cent of Andorra's exports and provides 61 per cent of its imports; France takes 15 per cent of Andorra's exports and provides 28 per cent of its imports.

Reliance on European tourism and use of the euro has exposed Andorra to the eurozone debt crisis, resulting in a downturn in recent years, with tourist numbers falling by 10 per cent in 2011 and the economy contracting by 1.8 per cent.