Economy
Like the economies of many other African nations, the economy is largely based on subsistence agriculture, with 65% of the population involved in farming and herding. Drought has often created trouble in the farming areas.
The Real GDP (2009 est.): $4.4 billion, and the annual growth rate (2009 est.): 3.6%.
The Eritrean-Ethiopian War severely hurt Eritrea's economy. GDP growth in 1999 fell to less than 1%, and GDP decreased by 8.2% in 2000. In May 2000, the war resulted in some $600 million in property damage and loss, including losses of $225 million in livestock and 55,000 homes. The war also destroyed the rail link between Asmara and Massawa, and prevented the planting of crops in Eritrea's most productive region, causing food production to drop by 62%.
Even during the war, Eritrea developed its transportation infrastructure by asphalting new roads, improving its ports, and repairing war-damaged roads and bridges as a part of the Warsay Yika'alo Program. The most significant of these projects was the building of a coastal highway of more than 500 km connecting Massawa with Asseb as well as the rehabilitation of the Eritrean Railway. The rail line has been restored between the port of Massawa and the capital Asmara, although services are sporadic. Steam locomotives are sometimes used for groups of enthusiasts.
In theory, the country has a national carrier, Eritrean Airlines, but services are intermittent.
Read more about this topic: Ertra
Famous quotes containing the word economy:
“The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. Meddle, and you snap the sinews with your sumptuary laws.”
—Ralph Waldo Emerson (1803–1882)
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)