Confidus Solutions logotype

Confidus Solutions

Economy of Eritrea

Eritrea is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Eritrea may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Eritrea exports around $0.5 billion and imports roughly $1.03 billion. 6.4% of population in the country are unemployed. The total number of unemployed people in Eritrea is 332,029. In Eritrea, 50% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Eritrea is very high when compared with other nations. This situation is indicative of a variety of alarming economic and political factors. It is not advisable to make any investments in countries with this level of poverty. Government expenditure on education is 2% of GDP. The Gini Index of the country is 37.63. Eritrea is experiencing good equality. The majority of citizens in Eritrea fall within a narrow range of income, although some cases may show significant differences. Eritrea has a Human Development Index (HDI) of 0.381. Eritrea has a lower medium HDI score. This indicates that the majority of citizens will struggle to attain a desirable life due to flawed economic and social systems. The Global Peace Index (GPI) for Eritrea is 2.309.

Currency

The currency of Eritrea is Eritrean nakfa. The plural form of the word Eritrean nakfa is nakfas. The symbol used for this currency is Nfk, and it is abbreviated as ERN. The Eritrean nakfa is divided into Cent; there are 100 in one nakfa.

Credit rating

Credit rating is the extent to which international investors trust a country in paying debts and upholding the country's obligations in terms of crediting. There is no information on the credit rating of Eritrea.

Central bank

In Eritrea, the institution that manages the state's currency, money supply, and interest rates is called Bank of Eritrea.

Public debt

Eritrea has a government debt of 35.4% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Eritrea is set at 30%. Personal income tax ranges from 2% to 30%, depending on your specific situation and income level. VAT in Eritrea is 5%, and it is known as Sales Tax.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Eritrea is $7842 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Eritrea was last recorded at $2 million. PPP in Eritrea is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Eritrea is 3,438 billion. Based on this statistic, Eritrea is considered to have a small economy. Countries with small economies generally support less industries and opportunities for investment. However, worthwhile investment opportunities may be found. The Gross Domestic Product (GDP) per capita in Eritrea was last recorded at $1 million. The average citizen in Eritrea has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Eritrea averaged 2% in 2014. According to this percentage, Eritrea is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly. To read more about financial information click on finances of Eritrea.

Industry

Major industries in the country are food processing, beverages, clothing and textiles, light manufacturing, salt, cement. The total labor force of Eritrea is 2,710,000 people, wherein 6.4% of population in the country are unemployed. The total number of unemployed people in Eritrea is 332,029. The Industrial Production growth rate of Eritrea is 11%.To read more about industrial information within Eritrea click on industry of Eritrea.

Agriculture

There are 5799 km2 of arable land in Eritrea, and it comprises 5% of the country's total territory. There are 5835 km2 of cultivated land in Eritrea. The country's major agricultural crops and products are sorghum, lentils, vegetables, corn, cotton, tobacco, sisal, livestock, goats, fish.To read more about agriculture click on agriculture of Eritrea.