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Laboratoire de la finance africaine

Eritrea

Preview 2018
Projected Real GDP Growth (% Change) : 3.1
GDP (current, USD Bn) : 2.60
Projected Consumer Prices (% Change) : -27.6
Country Population : 6.27 million
Economic performance and outlook

Real GDP is estimated to have fallen to 3.1% in 2019 due to subdued final demand of investment and exports. On the supply side, mining and agriculture remained the dominant contributors to real GDP growth. On the demand side, government investment in infrastructure—Notably in energy, roads, and irrigation—underpins growth. The economy has experienced a persistent fall in consumer prices for three consecutive years (2017–19), down 13.3% in 2017, 14.4% in 2018, and an estimated 27.6% in 2019. Deflation is structurally driven by the low prices of imported consumer goods supported by contraband trade and an overvalued exchange rate (by 14.9% in real effective terms).

(Download detailed Analysis Source : Report African Economic Outlook 2020 ; AfDB)