For centuries Andorra's economy was based on agriculture, mainly sheep raising and tobacco growing. Tourism boomed and dozens of luxury stores, hotels, and restaurants were built. With creation of the EC Unified Market, however, Andorra lost its privileged status and suffers from economic recession. Tourism is still an important source of income, especially during the skiing season, but has fallen dramatically. Due to banking secrecy laws, the financial service sector is growing in importance.
Many immigrant workers live in poor conditions.
However, the EP expressed uncertainty regarding the exercise of the right of association, noting that although not strictly forbidden, there were no political parties. It expressed concern also about the lack of labor unions and the absence of many social benefits common to other countries in the European Community. With the approval of a new Constitution in 1993, a process of potentially significant political change commenced. The Constitution proclaims as basic principles respect for the promotion of liberty, equality, justice, tolerance, defense of human rights, and dignity of the person. The rights of free association and assembly are guaranteed, but the Constitution is unclear regarding the right to strike.