Tag Archives: Fiscal Policy

Eritrea’s 2015 Economic Outlook

Eritrea's economic growth is projected at 2.1% in 2015
Eritrea’s economic growth is projected at 2.1% in 2015, up from 1.3% in 2013 and 2.0% in 2014, reflecting improved economic activity and increased investment in the mining sector. Continued improvements in public financial management, progress towards implementation of the Drought Resilience and Sustainable Livelihoods Programme (DRSLP) and enhanced skills development have created favorable medium-term prospects. It’s effort to promote growth based on a sectorial strategy, however, is now being threatened by increasing social and territorial disparities.

By Nyende Magidu,

ERITREA is aiming at creating a modern, private sector-led economy (Macro Policy 1994; National Indicative Development Plan 2014-2018). Attaining this objective is, however, compromised by an inadequately enabling investment and business environment, United Nations sanctions, and overall weak macroeconomic conditions.

Real GDP growth is projected to increase from 2.0% in 2014 to 2.1% in 2015, double the rate recorded in 2013, because of increasing investments in the mining sector. Over the medium term, the government sees further prospects in improved trade with Middle-Eastern and Asian countries, additional mining activities, the growth of the food sector and the development of the tourist industry.  Continue reading Eritrea’s 2015 Economic Outlook

African Economic Outlook 2014: Eritrea’s Fiscal Policy

The Eritrean government has continued to prioritize infrastructure development in order to promote private-sector investments. Infrastructure projects in Massawa and Assab have been completed. The country is also expanding the road network, particularly in the mining sites and in the free-trade zone, as well as the housing sector in Asmara. (AfDB Eritrea Report)

By Magidu Nyende and Luka Okumu,

EVIDENCE-based assessment of fiscal policy in Eritrea is severely constrained by lack of transparency and availability of basic information on fiscal operations and management, including, of course, the budget.

Estimates by various sources, including the IMF, however, indicate a continued improvement in the overall fiscal deficit (after grants) from about 13.2% of GDP in 2011 to an estimated 10.3% in 2013, reflecting improved tax collection from the 2012 level, lower expenditure on safety nets and a contraction in public investment (see table below).  Continue reading African Economic Outlook 2014: Eritrea’s Fiscal Policy

Eritrea Adopts Liberalization of Foreign Currency

The Revolution Begins

By TesfaNews,

The government of Eritrea declares the adoption of proclamation No. 173/2013 aimed for the full liberalization of foreign currency in the country effective as of today.

In line with the proposed fiscal policy reforms for this year, the new law pertains on the opening of foreign currency deposit accounts, domestic commercial transactions and/or contracts, currency remittance and exchange, as well as the declaration of currency of travelers arriving into and departing from Eritrea.  Continue reading Eritrea Adopts Liberalization of Foreign Currency