Highways link the country with Spain and France. Andorra is administratively divided into seven districts. Catalan is the official language, although Spanish and French are also spoken. Most of the population is Roman Catholic. Until the 1950s, farming, woodcutting, and smuggling were the main occupations.
Trade is duty-free and lack of taxation is attractive to foreign investment.
There are three large hydroelectric facilities, and the country exports electricity to Spain. Sheep are raised, and Andorra's farms produce tobacco, grains, corn, and grapes. Furniture is manufactured and distilleries produce brandy and anisette. Iron and lead are mined. In the 9th cent., Holy Roman Emperor Charles II is reputed to have made the bishop of Seo de Urgel overlord of Andorra.