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Eritrea:
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Other pages in this profile of Eritrea:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.
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Economy - overview |
Definition Since independence from Ethiopia in 1993, Eritrea has faced the economic problems of a small, desperately poor country, accentuated by the recent implementation of restrictive economic policies. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice (PFDJ). 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. The government strictly controls the use of foreign currency, limiting access and availability. Few private enterprises remain in Eritrea. Eritrea's economy is heavily dependent on taxes paid by members of the diaspora. Erratic rainfall and the delayed demobilization of agriculturalists from the military continue to interfere with agricultural production, and Eritrea's recent harvests have not been able to meet the food needs of the country. The government continues to place its hope for additional revenue on the development of several international mining projects. Despite difficulties for international companies in working with the Eritrean government, a Canadian mining company signed a contract with the GSE in 2007 and plans to begin mineral extraction in 2010. Eritrea also anticipates opening a free trade zone at the port of Massawa in 2008. Eritrea's economic future depends upon its ability to master social problems such as illiteracy, unemployment, and low skills, and more importantly, on the government's willingness to support a true market economy. |
GDP (purchasing power parity) |
Definition - World rank and map $3.619 billion (2007 est.) |
GDP (official exchange rate) |
Definition $1.316 billion (2007 est.) |
GDP - real growth rate |
Definition - World rank and map 1.3% (2007 est.) |
GDP - per capita |
Definition - World rank and map $800 (2007 est.) |
GDP - composition by sector |
Definition agriculture: 21.7% industry: 22.6% services: 55.7% (2007 est.) |
Labor force |
Definition NA |
Labor force - by occupation |
Definition agriculture: 80% industry and services: 20% (2004 est.) |
Unemployment rate |
Definition - World rank and map NA% |
Population below poverty line |
Definition 50% (2004 est.) |
Household income or consumption by percentage share |
Definition lowest 10%: NA% highest 10%: NA% |
Inflation rate (consumer prices) |
Definition - World rank and map 9.3% (2007 est.) |
Investment (gross fixed) |
Definition - World rank and map 21.1% of GDP (2007 est.) |
Budget |
Definition revenues: $234.6 million expenditures: $471.4 million (2007 est.) |
Agriculture - products |
Definition sorghum, lentils, vegetables, corn, cotton, tobacco, sisal; livestock, goats; fish |
Industries |
Definition food processing, beverages, clothing and textiles, light manufacturing, salt, cement |
Industrial production growth rate |
Definition - World rank and map 2% (2007 est.) |
Electricity - production |
Definition - World rank and map 274 million kWh (2005) |
Electricity - consumption |
Definition - World rank and map 228 million kWh (2005) |
Electricity - consumption per capita |
Definition - World rank and map 45.4 kWh (2005) |
Electricity - exports |
Definition 0 kWh (2005) |
Electricity - imports |
Definition 0 kWh (2005) |
Oil - production |
Definition - World rank and map 0 bbl/day (2005 est.) |
Oil - consumption |
Definition - World rank and map 5,000 bbl/day (2005 est.) |
Oil - consumption per 1,000 people |
Definition - World rank and map 1 bbl/day (2005 est.) |
Oil - exports |
Definition - World rank and map 54.59 bbl/day (2004) |
Oil - imports |
Definition - World rank and map 4,924 bbl/day (2004) |
Oil - proved reserves |
Definition - World rank and map 0 bbl (1 January 2006 est.) |
Natural gas - production |
Definition - World rank and map 0 cu m (2005 est.) |
Natural gas - consumption |
Definition - World rank and map 0 cu m (2005 est.) |
Natural gas - consumption per capita |
Definition - World rank and map 0 cu m (2005 est.) |
Natural gas - exports |
Definition - World rank and map 0 cu m (2005 est.) |
Natural gas - imports |
Definition - World rank and map 0 cu m (2005) |
Natural gas - proved reserves |
Definition - World rank and map 0 cu m (1 January 2006 est.) |
Current account balance |
Definition - World rank and map -$62 million (2007 est.) |
Exports |
Definition - World rank and map $16.95 million f.o.b. (2007 est.) |
Exports - commodities |
Definition livestock, sorghum, textiles, food, small manufactures |
Exports - partners |
Definition Italy 19%, Austria 11.6%, France 11.5%, US 5.6%, Ethiopia 4.7%, Taiwan 4.6%, China 4.4% (2006) |
Imports |
Definition - World rank and map $577 million f.o.b. (2007 est.) |
Imports - commodities |
Definition machinery, petroleum products, food, manufactured goods |
Imports - partners |
Definition Italy 16.8%, China 16.7%, Netherlands 6.9%, Saudi Arabia 6.8%, Turkey 6.6%, Sudan 6.3%, Germany 5.7% (2006) |
Reserves of foreign exchange and gold |
Definition - World rank and map $22.66 million (31 December 2007 est.) |
Debt - external |
Definition - World rank and map $311 million (2000 est.) |
Economic aid - recipient |
Definition $355.2 million (2005) |
Currency (code) |
Definition nakfa (ERN) |
Exchange rates |
Definition nakfa (ERN) per US dollar - 15.5 (2007), 15.4 (2006), 14.5 (2005), 13.788 (2004), 13.878 (2003) note: the official exchange rate is 15 nakfa to the dollar |
Fiscal year |
Definition calendar year |
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