IV.

Economy

In 1994 national revenue totalled just over US$1,000 million, equivalent to US$15,805 per head. Andorra’s economy was formerly based on pastoral farming and the processing of tobacco and timber. Tourism has boomed since the 1950s and now dominates the principality’s economic life, with an estimated 12 million visitors a year. Tourists are drawn by the winter skiing facilities, the Alpine climate, and the availability of duty-free goods. Andorra has no railways or airport but possesses an excellent road system. Financial services emerged in the 1990s as the new growth area in the economy, helped by strict laws on banking secrecy and low rates of taxation. In early 2002, Andorra refused to sign up to an Organization for Economic Cooperation and Development (OECD) agreement on tax evasion, which would have compelled the country to share information about potential tax evasion and make transparent its own banking arrangements. The Andorran government collects revenue through a small number of taxes and the sale of postage stamps. The French franc and the Spanish peseta were formerly both in use, but in January 2002, alongside both France and Spain, Andorra adopted the Euro. As at early 2008, 0.68 Euros equalled US$1. Television broadcasting in Andorra is run by Andorra Televisió. Radio Nacional d’Andorra runs Radio Andorra and the music station Andorra Música. There is also a commercial station—Radio Valira. The country has two major newspapers: el Periódico, published in Catalan and Spanish, and Diari d’Andorra.