General Overview
For 715 years, from 1278 to 1993, Andorrans lived under a unique co-principality, ruled by French and Spanish leaders (from 1607 onward, the French chief of state and the Spanish bishop of Urgel). In 1993, this feudal system was modified with the titular heads of state retained, but the government transformed into a parliamentary democracy. Long isolated and impoverished, mountainous Andorra achieved considerable prosperity since World War II through its tourist industry. Many immigrants (legal and illegal) are attracted to the thriving economy with its lack of income taxes.

Demographics
Andorra, French Andorre, principality (174 sq mi/451 sq km; 1990 estimated population 54,507; 2004 estimated population 69,865), in the E Pyrenees mountains of SW Europe, 75 mi/121 km W of Mediterranean Sea, 85 mi/137 km NNW of Barcelona, Spain; (cap.) Andorra la Vella, also called Andorra. Andorra lies between France and Spain, bounded by French departments of Ariege (N) and Pyrenees-Orientales (E) and Spanish provinces of Lerida (W and S) and Gerona (SE).

• Country name: Principality of Andorra
• Location: Southwestern Europe
• Population: 71,822 (July 2007 est.)
• Nationality: Andorran
• Languages: Catalan (official), French, Castilian and Portuguese
• Religion: Roman Catholic (predominant)
• Ethnic Groups: Spanish 43%, Andorran 33%, Portuguese 11%, French 7%, other 6%
• Capital Name: Andorra la Vella

Economy
The Andorran economy is primarily based on trade and tourism, with the traffic between France and Spain providing most of the revenue. Approximately nine million tourists visit Andorra each year. The Andorran banking system is of some importance as a tax haven for foreign financial transactions and investments. Andorra also is a tax haven because there are no direct taxes.

• GDP (purchasing power parity): $2.77 billion
• GDP - real growth rate: 3.5%
• GDP - per capita (PPP): $38,800
• Inflation rate (consumer prices): 3.2%
• Exports: $148.7 million f.o.b.
• Imports: $1.879 billion

Government
Parliamentary democracy (since March 1993) that retains as its chiefs of state a coprincipality; the two princes are the president of France and bishop of Seo de Urgel, Spain, who are represented locally by coprinces' representatives

• Administrative divisions: 7 parishes (parroquies, singular - parroquia); Andorra la Vella, Canillo, Encamp, Escaldes-Engordany, La Massana, Ordino, Sant Julia de Loria
• Legal system: based on French and Spanish civil codes; no judicial review of legislative acts; has not accepted compulsory ICJ jurisdiction
• Independence: 1278 (formed under the joint suzerainty of the French Count of Foix and the Spanish Bishop of Urgel)

References
Government of Andorra - Official Website
Central Intelligence Agency (CIA) - The World Factbook
Nation Master - World Data Center
Wikipedia - The Free Encyclopedia
Lonely Planet - Travel Guidebook