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Sub Saharan Africa
Eritrea |
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Country information
ECONOMY
Basic Economic Facts
GDP: US$1,000 million (2005 est)
GNP per capita: US$150
Real GDP Growth: 3.6% (average over last three years)
Exchange Rate:
Major Industries: Food processing, beverages, clothing and textiles
Major trading partners: Exports – Italy 31.4%, US 11.9%, Belarus 5.9%, France 5.1%, Germany 4.6%, Turkey 4.4.%, UK 4% (2006). Imports - Italy 15.1%, France 11.8%, US 9.5%, Germany 8.6%, Taiwan 7.3 %, India 7%, Ireland 6.1%, Turkey 4.4%, Jordan 4.2%. (NB During 2007 China and Sudan will now feature prominently as Eritrea’s main trading partners).
The economy is largely based on subsistence agriculture, which employs 70–80% of the population. Eritrea’s industrial sector accounts for 25.4% of GDP and employed 10% of the workforce, but this will have declined with the halting of trade with Ethiopia since 1998. The private sector has also shrunk dramatically in recent years. Likewise, the ports at Massawa and Assab were major economic assets while they served Ethiopia’s import and export needs but Ethiopian transit trade ceased in 1998. Eritrea’s economic prospects were severely affected by the war and continued military preparedness has resulted in acute shortages of manpower and foreign exchange. Economic growth is officially noted at 3% but a more realistic figure is < 2%. Similarly, official inflation figures stand at 12% but may be more of the order of 20%. Contributions from the diaspora help to keep the economy afloat but these are thought to be diminishing. Efforts are underway to develop the tourist industry around Massawa.
IMF Country Reports: Eritrea
