Economy Of Eritrea - Eritrea Information

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Economy Of Eritrea
Eritrea Information - Country Guides

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. 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	purchasing power parity - $3.3 billion (2004 est.)
GDP - real growth rate	2% (2004 est.)
GDP - per capita	purchasing power parity - $700 (2004 est.)
GDP - composition by sector	agriculture: 12.4% industry: 25.3% services: 62.4% (2004 est.)
Investment gross fixed	26.3% of GDP (2002)
Population below poverty line	53% (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	12.3% (2004 est.)
Labor force	NA (1999)
Labor force by occupation	agriculture 80%, industry and services 20%
Unemployment rate	NA (2003 est.)
Budget	revenues: $235.7 million expenditures: $375 million, including capital expenditures of $na (2004 est.)
Public debt
Agriculture products	sorghum, lentils, vegetables, corn, cotton, tobacco, coffee, sisal; livestock, goats; fish
Industries	food processing, beverages, clothing and textiles
Industrial production growth rate	NA
Electricity production	220.5 million kWh (2001)
Electricity production by source	fossil fuel: 100% hydro: 0% other: 0% (2001) nuclear: 0%
Electricity consumption	205.1 million kWh (2001)
Electricity exports	0 kWh NA kWh (2001)
Electricity imports	0 kWh NA kWh (2001)
Oil production	0 bbl/day (2001 est.)
Oil consumption	6,000 bbl/day (2001 est.)
Oil exports	NA (2001)
Oil imports	NA (2001)
Oil proved reserves
Natural gas production
Natural gas consumption
Natural gas exports
Natural gas imports
Natural gas proved reserves
Current account balance	$-159 million (2004 est.)
Exports	$56 million f.o.b. (2004 est.)
Exports commodities	livestock, sorghum, textiles, food, small manufactures (2000)
Exports partners	Malaysia 65.1%, Italy 10.4%, France 4.4% (2003)
Imports	$600 million f.o.b. (2003 est.)
Imports commodities	machinery, petroleum products, food, manufactured goods (2000)
Imports partners	US 39.7%, Italy 19.1%, Turkey 6.8%, Russia 5.4%, France 4.7% (2003)
Reserves of foreign exchange gold	$28 million (2004 est.)
Debt external	$311 million (2000 est.)
Economic aid recipient	$77 million (1999)
Currency	nakfa (ERN)
Currency code	ERN
Exchange rates	nakfa (ERN) per US dollar - NA (2003), 13.9582 (2002), 11.3095 (2001), 9.5 (2000), 7.6 (1999)
Fiscal year	calendar year

Eritrean Flag Map Of Eritrea Tigrinya language

Economy Of EritreaEritrea Information - Country Guides

Economy Of Eritrea
Eritrea Information - Country Guides