Eritrea’s economy is projected to grow by 7.5 percent in 2012, according to the International Monetary Fund (IMF).
Driven largely by an increase in major infrastructure development, solid agriculture output and mineral exports, forecasts taken from World Economic Outlook (WEO) released by the IMF on April 17, 2012, reveal Eritrea will register the fastest-growing economy in East Africa this year.
Despite high fuel prices and some macroeconomic imbalances hindering the economy, the Washington-based body said Eritrea’s consumer prices will decline from 13.2 percent in 2011 to 12.3 percent this year.
After coming off of a red-hot 17 percent economic growth last year, the Red Sea state aims for 7 to 10 percent annual GDP growth levels between the years of 2012-2015. With the Zara and Koka gold mines both set for production in late 2013, Eritrea’s economy will likely expand by double-digit figures next year.
Regionally, the report said Sudan’s economy will decline by 7.3% due to South Sudan gaining independence in July and taking with it around 75 percent of the formerly united Sudan’s oil outputs.
REGIONAL GDP GROWTH PERCENTAGES
|Source(s): EIU, IMF, RB|
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