Economy - overview: 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 in 1999 fell to less than 1%, and GDP decreased by 8.2% 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. Eritrea's economic future remains mixed. The cessation of Ethiopian trade, which mainly used Eritrean ports before the war, leaves Eritrea with a large economic hole to fill. Eritrea's economic future depends upon its ability to master fundamental social problems like illiteracy, unemployment, and low skills, and to convert the diaspora's money and expertise into economic growth.
GDP: purchasing power parity - $3.2 billion (2001 est.)
GDP - real growth rate: 7% (2001 est.)
GDP - per capita: purchasing power parity - $740 (2001 est.)
GDP - composition by sector: agriculture: 17% industry: 29% services: 54% (2001 est.)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices): 15% (2001 est.)
Labor force: NA
Labor force - by occupation: agriculture 80%, industry and services 20%