Flag description: red isosceles triangle (based on the hoist side) dividing the flag into two right triangles; the upper triangle is green, the lower one is blue; a gold wreath encircling a gold olive branch is centered on the hoist side of the red triangle
Eritrea Economy
Economy - overview: With independence from Ethiopia on 24 May 1993, Eritrea faced the economic problems of a small, desperately poor country. The economy is largely based on subsistence agriculture, with 80% of the population involved in farming and herding. The small industrial sector consists mainly of light industries with outmoded technologies. Domestic output (GDP) is substantially augmented by worker remittances from abroad. Government revenues come from custom duties and taxes on income and sales. Road construction is a top domestic priority. In the long term, Eritrea may benefit from the development of offshore oil, offshore fishing, and tourism. Eritrea's economic future depends on its ability to master fundamental social and economic problems, e.g., by reducing illiteracy, promoting job creation, expanding technical training, attracting foreign investment, and streamlining the bureaucracy. Eritrea's agriculture over the last two years was severely weakened by war and drought, and many farmlands must wait to be demined. Another major difficulty is the ports, which prior to the war were Ethiopia's preferred outlets but since have seen trade dry up.
GDP: purchasing power parity - $2.9 billion (2000 est.)
GDP - real growth rate: -1% (2000 est.)
GDP - per capita: purchasing power parity - $710 (2000 est.)
GDP - composition by sector: agriculture: 16%
industry: 27%
services: 57% (2000 est.)
Population below poverty line: NA%