About Eritrea and Key Financial Statistics

About Eritrea and Key Financial Statistics

Overview of Economy:

Since formal independence from Ethiopia in 1993, Eritrea has faced many economic problems, including lack of resources and chronic drought, which have been exacerbated by 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, a large share of the population - nearly 80% - is engaged in subsistence agriculture, but the sector only produces a small share of the country's total output. Since the conclusion of the Ethiopian-Eritrea war in 2000, the government has expanded use of military and party-owned businesses to complete President ISAIAS's development agenda. The government has strictly controlled the use of foreign currency by limiting access and availability; new regulations in 2013 aimed at relaxing currency controls have had little economic effect. Few large private enterprises exist in Eritrea and most operate in conjunction with government partners, including a number of large international mining ventures that have recently begun production. While reliable statistics on food security are difficult to obtain, erratic rainfall and the percentage of the labor force tied up in national service continue to interfere with agricultural production and economic development. Eritrea's harvests generally cannot meet the food needs of the country without supplemental grain purchases. Copper, potash, and gold production is likely to drive economic growth over the next few years, but military spending will continue to compete with development and investment plans. Eritrea's economic future will depend on market reform, international sanctions, global food prices, and success at addressing social problems such refugee emigration.

Gross Domestic Product (In USD):

$7.842 billion (2014 est.)

$7.711 billion (2013 est.)

$7.61 billion (2012 est.)

Composition of Gross Domestic Product:

% Agricuture: 12.3

% Industry: 28.7

% Services: 59

Composition of Labor Force by Occupation:

% Agriculture: 80

% Industry and services: 20

Per Capita Income:

$1,200 (2014 est.)

$1,200 (2013 est.)

$1,200 (2012 est.)

Exports:

$504.9 million (2014 est.)

$462 million (2013 est.)

Key Export Commodities:

gold and other minerals, livestock, sorghum, textiles, food, small manufactures

Export Partners:

Imports:

$1.15 billion (2014 est.)

$1.028 billion (2013 est.)

Key Import Commodities:

machinery, petroleum products, food, manufactured goods

Import Partners:

Inflation Rate (Consumer Price Index):

12.3% (2014 est.)

12.3% (2013 est.)

Exchange Rate to USD:

nakfa (ERN) per US dollar -

15.375 (2014 est.)

15.375 (2013 est.)

15.375 (2012 est.)

15.375 (2011 est.)

15.375 (2010 est.)

Unemployment Rate:

8.6% (2013 est.)

10% (2012 est.)

S&P Rating:

Standard & Poor's Ratings:

• • AAA: The best quality borrowers, reliable and stable

  • AA: Quality borrowers, a bit higher risk than AAA

  • A: Economic situation can affect finance

  • BBB: Medium class borrowers, which are satisfactory at the moment

  • BB: More prone to changes in the economy

  • B: Financial situation varies noticeably

  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.

Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings