The economic architecture of Eritrea is substantial, anchored by a Gross Domestic Product (GDP) of approximately $2.07B
2011
. This places it as the 173rd largest economy out of 192 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $688.68
2011
, while its GDP adjusted for Purchasing Power Parity (PPP) is estimated at $5.22B, offering a clearer picture of the population's domestic purchasing power. The economy is experiencing a period of vigorous expansion, with a high growth rate of 8.7%
2011
On the global stage, Eritrea's trade and financial dynamics reveal a complex interplay of international and domestic factors. The nation's economic activity is heavily reliant on foreign goods, running a considerable trade deficit with imports at 29.2% of GDP and exports at 18.2%
2011
. The investment climate attracts significant Foreign Direct Investment (FDI), with inflows constituting 1.89% of the economy
2011
. This performance positions the country 97th globally out of 187 nations, confirming its status as a competitive destination for foreign capital.
The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $650
2011
, ranking the nation 182nd out of 191. This figure provides a comprehensive measure of the average income per person, reflecting the nation's overall economic well-being. The labor market remains stable, with an unemployment rate of 5.6%.
2024
A key feature of the workforce is its concentration in the services sector, which accounts for 30.1% of total employment
2023
.
In the environmental and energy sectors, the nation's policies and outcomes reflect its developmental priorities. Energy consumption per capita stands at 289.548 kg of oil equivalent
2022
, a metric that often correlates with industrial activity and living standards. The country is at the forefront of the global green transition, with renewable sources constituting a remarkable 80.7% of total final energy consumption
2021
. This commitment places it 177th among 191 countries, highlighting its relative progress in decarbonization. Total greenhouse gas emissions were last recorded at 6.4K tonnes of CO2 equivalent
2023
, a key factor in its national climate strategy and international obligations.

Key Economic Insights

Macroeconomic Health

Balancing growth, inflation, and employment remains the core challenge for economic stewardship.

Trade & Investment Profile

The economy is largely insular and consumption-driven, relying heavily on imports and showing limited integration into global export markets.

Social Equity & Distribution

Ensuring equitable distribution of economic gains is fundamental for long-term social and political stability.

Energy & Sustainability

A global leader in the green transition, the country leverages its strong commitment to renewable energy as a key economic and diplomatic advantage.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.