Andorra - Economic sectors

Andorra's natural resources include iron and lead deposits, marble quarries, forests of pine and birch, hydropower resources, strips of fertile land in the valleys, and extensive pastures on the mountain slopes. But the economy is mostly influenced by the excellent skiing areas, the pleasant climate, and the crossroads location of the country. Nearly four-fifths of the GDP in 1998 was generated in the tourist and other related service sectors; about one-fifth was generated in industry, including construction and mining; and just about 1 percent in agriculture. The labor force was distributed by occupation as follows: agriculture, 1 percent; industry, 21 percent; services, 72 percent; and other sectors, 6 percent (1998 estimates). The most important industries included tourism (particularly skiing), cattle raising, timber, tobacco growing, banking, and retail . Before World War II, most families made their living off farming, tobacco and timber processing, and smuggling, but since the 1950s tourism has been the bulwark of economic progress. With the gradual dismantling of Andorra's duty-free shopping advantages in the course of EU liberalization, the economy will become gradually more dependent on banking and finance services.

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