Tourism, retail sales, and finance are the mainstays of Andorra's tiny, well-to-do economy, accounting for more than three-quarters of GDP. About 9 million tourists visit annually, attracted by Andorra's duty-free status for some products and by its summer and winter resorts. The banking sector also contributes substantially to the economy. Andorra's comparative advantage as a tax haven eroded when the borders of neighboring France and Spain opened; its bank secrecy laws have been relaxed under pressure from the EU and OECD. Agricultural production is limited - only 2% of the land is arable - and most food has to be imported, making the economy vulnerable to changes in fuel and food prices. The principal livestock activity is sheep raising. Manufacturing output and exports consist mainly of perfumes and cosmetic products, products of the printing industry, electrical machinery and equipment, clothing, tobacco products, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products. Andorra uses the euro and is effectively subject to the monetary policy of the European Central Bank. Slower growth in Spain and France has dimmed Andorra's prospects. In 2010 and 2011 a drop in tourism contributed to a contraction in GDP and a deterioration of public finances, prompting the government to implement several austerity measures.

Small quantities of rye, wheat, barley, oats, vegetables; sheep

Tourism (particularly skiing), cattle raising, timber, banking, tobacco, furniture

Most electricity supplied by Spain and France; Andorra generates a small amount of hydropower (2009)

Consumer goods, food, electricity