Eritrean Economy, Eritrea Economy
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Economy - overview: Since independence from Ethiopia on 24 May 1993, Eritrea has faced the economic problems of a small, desperately poor country. Like the economies of many African nations, the economy is largely based on subsistence agriculture, with 80% of the population involved in farming and herding. The Ethiopian-Eritrea war in 1998-2000 severely hurt Eritrea's economy. GDP growth fell to zero in 1999 and to -12.1% in 2000. The May 2000 Ethiopian offensive into northern Eritrea caused some $600 million in property damage and loss, including losses of $225 million in livestock and 55,000 homes. The attack prevented planting of crops in Eritrea's most productive region, causing food production to drop by 62%. Even during the war, Eritrea developed its transportation infrastructure, asphalting new roads, improving its ports, and repairing war damaged roads and bridges. Since the war ended, the government has maintained a firm grip on the economy, expanding the use of the military and party-owned businesses to complete Eritrea's development agenda. Erratic rainfall and the delayed demobilization of agriculturalists from the military kept cereal production well below normal, holding down growth in 2002-04. Eritrea's economic future depends upon its ability to master social problems such as illiteracy, unemployment, and low skills, and to open its economy to private enterprise so the diaspora's money and expertise can foster economic growth.
GDP: 13.4% (2004)
GDP - real growth rate: 2.5% (2004 est.)
GDP - per capita: Purchasing power parity - $900 (2004 est.)
GDP - composition by sector: Agriculture: 12.4% industry: 25.9% services: 61.7% (2004 est.)
Population below poverty line: 50% (2004 est.)
Household income or consumption by percentage share: Lowest 10%: NA highest 10%: NA
Distribution of family income - Gini index:
Inflation rate (consumer prices):
Labor force: NA
Labor force - by occupation: Agriculture 80%, industry and services 20%
Unemployment rate: NA (2003 est.)
Budget: Revenues: $235.2 million expenditures: $373.2 million, including capital expenditures of NA (2004 est.)
Industries: Food processing, beverages, clothing and textiles, salt, cement, commercial ship repair
Industrial production growth rate: NA
Electricity - production: 246.6 million kWh (2002)
Electricity - production by source:
Electricity - consumption: 229.4 million kWh (2002)
Electricity - exports: 0 kWh (2002)
Electricity - imports: 0 kWh (2002)
Oil - production: 0 bbl/day (2001 est.)
Oil - consumption: 6,000 bbl/day (2001 est.)
Oil - exports: NA
Oil - imports: NA
Oil - proved reserves:
Natural gas - production:
Natural gas - consumption:
Natural gas - exports:
Natural gas - imports:
Natural gas - proved reserves:
Agriculture - products: Sorghum, lentils, vegetables, corn, cotton, tobacco, coffee, sisal; livestock, goats; fish
Exports: $64.44 million f.o.b. (2004 est.)
Exports - commodities: Livestock, sorghum, textiles, food, small manufactures (2000)
Exports - partners: Malaysia 26.6%, Italy 17.1%, Japan 8%, Germany 6.6%, China 5%, UK 4.9%, US 4.7%, France 4.4%, Poland 4.2% (2004)
Imports: $622 million f.o.b. (2004 est.)
Imports - commodities: Machinery, petroleum products, food, manufactured goods (2000)
Imports - partners: Ireland 26.6%, US 18.6%, Italy 16.6%, Turkey 6.4% (2004)
Debt - external: $311 million (2000 est.)
Economic aid - recipient: $77 million (1999)
Currency:
Currency code:
Exchange rates: Nakfa (ERN) per US dollar - 13.788 (2004), 13.878 (2003), 13.958 (2002), 11.31 (2001), 9.625 (2000)
Fiscal year: Calendar year
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The information here has been derived from Public Domain Sources such as the CIA World Factbook. No liability can be taken for any inaccuracies.
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