NOTE: The information regarding Eritrea on this page is re-published from the 2020 World Fact Book of the United States Central Intelligence Agency and other sources.
The economy of Eritrea has experienced considerable growth in recent years, indicated by an improvement in gross domestic product (GDP) in October 2012 of 7.5 percent over 2011.
Onerous regulations are impediments to foreign and domestic investment.
The changeover has resulted in exchange fluctuations and the scarcity of hard currency available in the market.While reliable statistics on Eritrea are difficult to obtain, erratic rainfall and the large percentage of the labor force tied up in military service continue to interfere with agricultural production and economic development. Like the economies of many African nations, a large share of the population - nearly 80% in Eritrea - is engaged in subsistence agriculture, but the sector only produces a small share of the country's total output.Since the conclusion of the Ethiopia-Eritrea war in 2000, the government has expanded military- and party-owned businesses to complete President ISAIAS's development agenda. Eritrean economy in numbers. Economic growth will be supported by construction of the Colluli potash project in 2020-21.
Eritrea’s recent growth performance has been marked by significant volatility in part due to its dependence on a predominantly rain-fed agriculture sector, accounting for about one-third of the economy (and which has a significant impact on distribution services which account for around 20% of gross domestic product (GDP), and on a narrow mining sector which also accounts for 20% of the …
Eritrea and Ethiopia normalized relations in 2018, and Eritrea and Djibouti made progress in resolving their border dispute.
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Eritrea's harvests generally cannot meet the food needs of the country without supplemental grain purchases.
90 All suggestions for corrections of any errors about Eritrea 2020 should be addressed to the CIA or the source cited on each page. government controls broadcast media with private ownership prohibited; 1 state-owned TV station; state-owned radio operates 2 networks; purchases of satellite dishes and subscriptions to international broadcast media are permitted (2007)
The overall tax burden equals 8.0 percent of total domestic income. Eritrea beefed up its preparedness and response actions to fight the pandemic in line with the WHO strategic preparedness and response plan. These shocks are projected to reverse real GDP growth in 2020 although a strong recovery is expected in 2021 as the pandemic is contained.The supply shocks are likely to more than offset the impact of subdued demand, increasing inflation to 5% in the worst-case scenario in 2020 relative to previous estimates.Increased public spending in response to the COVID–19 crisis amid depressed revenues will worsen the fiscal balance, which is projected to widen to –4.7% of GDP in 2020 (baseline) and to –5.7% with the pandemic persisting to year’s end (worst case).A national COVID–19 pandemic response plan is yet to be announced. 2,234 km (mainland on Red Sea 1,151 km, islands in Red Sea 1,083 km)hot, dry desert strip along Red Sea coast; cooler and wetter in the central highlands (up to 61 cm of rainfall annually, heaviest June to September); semiarid in western hills and lowlandsdominated by extension of Ethiopian north-south trending highlands, descending on the east to a coastal desert plain, on the northwest to hilly terrain and on the southwest to flat-to-rolling plainsgold, potash, zinc, copper, salt, possibly oil and natural gas, fisharable land 6.8%; permanent crops 0%; permanent pasture 68.3%density is highest in the center of the country in and around the cities of Asmara (capital) and Keren; smaller settlements exist in the north and southfrequent droughts, rare earthquakes and volcanoes; locust swarmsdeforestation; desertification; soil erosion; overgrazingstrategic geopolitical position along world's busiest shipping lanes; Eritrea retained the entire coastline of Ethiopia along the Red Sea upon de jure independence from Ethiopia on 24 May 1993
A UN peacekeeping operation was established that monitored a 25 km-wide Temporary Security Zone.
However, the authorities should continue to mobilize citizens within the country and the diaspora to support the National Fund for COVID–19 pandemic.The swift responses from volunteers have allowed the government to address the immediate health needs with-out neglecting the most vulnerable. Eritrea - Economic Forecasts - 2020-2022 Outlook This page has economic forecasts for Eritrea including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the Eritrea economy. country comparison to the world (CIA rank, may be based on non-current data):