|
Economy - overview:
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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. |
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GDP:
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purchasing
power parity - $4.154 billion (2004 est.) |
|
GDP - real growth rate:
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2.5% (2004
est.) |
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GDP - per capita:
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purchasing
power parity - $900 (2004 est.) |
|
GDP - composition by
sector:
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agriculture: 12.4%
industry: 25.9%
services: 61.7% (2004 est.) |
|
Investment (gross fixed):
|
26.3% of GDP
(2002) |
|
Population below poverty
line:
|
50% (2004
est.) |
|
Household income or
consumption by percentage share:
|
lowest
10%: NA
highest 10%: NA |
|
Inflation rate (consumer
prices):
|
10% (2004
est.) |
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Labor force:
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NA |
|
Labor force - by
occupation:
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agriculture
80%, industry and services 20% |
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Unemployment rate:
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NA (2003
est.) |
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Budget:
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revenues:
$235.2 million
expenditures: $373.2 million, including capital
expenditures of NA (2004 est.) |
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Agriculture - products:
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sorghum,
lentils, vegetables, corn, cotton, tobacco, coffee, sisal;
livestock, goats; fish |
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Industries:
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food
processing, beverages, clothing and textiles, salt, cement,
commercial ship repair |
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Industrial production
growth rate:
|
NA |
|
Electricity - production:
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246.6 million
kWh (2002) |
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Electricity - production
by source:
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fossil
fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)
|
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Electricity -
consumption:
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229.4 million
kWh (2002) |
|
Electricity - exports:
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0 kWh (2002)
|
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Electricity - imports:
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0 kWh (2002)
|
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Oil - production:
|
0 bbl/day
(2001 est.) |
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Oil - consumption:
|
6,000 bbl/day
(2001 est.) |
|
Oil - exports:
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NA |
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Oil - imports:
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NA |
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Current account balance:
|
$-144.9
million (2004 est.)
|
|
Exports:
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$64.44
million f.o.b. (2004 est.)
|
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Exports - commodities:
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livestock,
sorghum, textiles, food, small manufactures (2000) |
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Exports - partners:
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Malaysia
54.7%, Italy 8.8%, France 3.7% (2004) |
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Imports:
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$622 million
f.o.b. (2004 est.)
|
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Imports - commodities:
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machinery,
petroleum products, food, manufactured goods (2000) |
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Imports - partners:
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US 32.3%,
Italy 15.5%, Turkey 5.5%, UK 4.6%, Russia 4.4%, Italy 6.4%
(2004) |
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Reserves of foreign
exchange and gold:
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$30.87
million (2004 est.) |
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Debt - external:
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$311 million
(2000 est.) |
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Economic aid - recipient:
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$77 million
(1999) |
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Currency:
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nakfa (ERN)
|
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Currency code:
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ERN |
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Exchange rates:
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nakfa (ERN)
per US dollar - 13.788 (2004), 13.878 (2003), 13.958 (2002),
11.31 (2001), 9.625 (2000) |
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Fiscal year:
|
calendar year
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