Economy - overview:
Since independence from Ethiopia in 1993, Eritrea has faced the economic problems of a small, poor country, facing chronic drought. These have been exacerbated by restrictive economic policies. Eritrea has a command economy under the control of the sole political party, the People's Front for Democracy and Justice (PFDJ). Like the economies of many African nations, a large share of the population - nearly 80% - is engaged in subsistence agriculture. That sector only produces a small share of the country's total output. Since the conclusion of the Ethiopian-Eritrea war in 2000, the government has expanded use of military and party-owned businesses to complete President ISAIAS's development agenda. The government strictly controls the use of foreign currency by limiting access and availability. Few large private enterprises exist in Eritrea and most operate in conjunction with government partners, although recently a number of large international mining ventures have opened. Eritrea's national income also relies in part on taxes paid by members of the Diaspora. While reliable statistics on food security are difficult to obtain, erratic rainfall and the percentage of the labor force tied up in national service continue to interfere with agricultural production and economic development. Eritrea's harvests generally cannot meet the food needs of the country without supplemental grain purchases. Copper and gold production is likely to drive economic growth over the next few years, but military spending will continue to compete with development and investment plans. Eritrea's economic future will depend on market reform and success at addressing social problems such as illiteracy and low skills.

GDP (purchasing power parity):
$4.349 billion (2012 est.)
country comparison to the world: 173