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Economy of Eritrea vs Ethiopia compared: GDP & Debt

Updated on by Georank team

Eritrea has a GDP of $2.07B compared to $150B for Ethiopia, ranking 179/197 and 60/197 by economy size, respectively.

Eritrea has $3.54B in government debt (260.4% of GDP), compared to $48.9B (32.7% of GDP) in Ethiopia.

Eritrea vs Ethiopia GDP by year

Eritrea
Ethiopia
1x
Year GDP, current $
Eritrea Ethiopia
2024 - $149,740,297,953
2023 - $135,874,093,202
2022 - $123,140,304,666
2021 - $109,070,960,372
2020 - $98,676,811,061
2019 - $91,834,517,113
2018 - $83,337,901,072
2017 - $76,366,081,767
2016 - $68,475,871,210
2015 - $62,103,418,182
2014 - $55,612,228,234
2013 - $47,648,276,605
2012 - $43,310,721,414
2011 $2,065,001,626 $31,952,763,089
2010 $1,589,515,447 $29,933,790,334
2009 $1,856,695,551 $32,437,389,116
2008 $1,380,188,800 $27,066,912,635
2007 $1,317,974,491 $19,707,616,773
2006 $1,211,161,880 $15,280,861,835
2005 $1,098,424,686 $12,401,139,454
2004 $1,109,054,005 $10,131,187,261
2003 $870,248,268 $8,623,691,300
2002 $729,321,680 $7,850,809,498
2001 $752,371,689 $8,231,326,016
2000 $706,370,816 $8,242,349,618
1999 $688,918,537 $7,892,973,532
1998 $745,523,117 $8,013,274,132
1997 $686,490,090 $8,803,539,988
1996 $693,535,954 $8,761,215,548
1995 $578,015,625 $7,855,205,207
1994 $531,688,312 $7,100,806,754
1993 $467,872,715 $9,051,043,870
1992 $477,101,652 $10,754,799,037
1991 - $13,799,799,324
1990 - $12,478,943,895
1989 - $11,762,932,007
1988 - $11,181,119,718
1987 - $10,790,001,558
1986 - $10,094,328,898
1985 - $9,717,392,687
1984 - $8,298,309,581
1983 - $8,781,664,427
1982 - $7,899,988,841
1981 - $7,507,663,567
1980 - $7,012,585,454
1979 - $6,586,048,398
1978 - $6,014,961,435
1977 - $5,651,840,585
1976 - $4,943,806,093
1975 - $4,577,047,854
1974 - $4,577,209,966
1973 - $4,070,570,550
1972 - $3,520,252,938
1971 - $3,224,280,835
1970 - $3,045,354,455
1969 - $2,768,987,372
1968 - $2,619,948,865
1967 - $2,461,762,003
1966 - $2,324,466,416
1965 - $2,159,998,591
1964 - $1,984,129,186
1963 - $1,825,058,828
1962 - $1,747,566,307
1961 - $1,680,859,514
1960 - $1,610,511,694

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/eritrea/ethiopia | CC BY

GDP per capita in Eritrea vs Ethiopia by year

Eritrea
GDP per capita

GDP per capita, PPP
Ethiopia
GDP per capita

GDP per capita, PPP
1x
Year Current $
Eritrea Ethiopia
GDP per capita GDP per capita, PPP GDP per capita GDP per capita, PPP
2024 - - $1,134 $3,288
2023 - - $1,056 $3,061
2022 - - $982 $2,845
2021 - - $893 $2,588
2020 - - $830 $2,407
2019 - - $793 $2,242
2018 - - $740 $2,095
2017 - - $696 $2,005
2016 - - $642 $1,858
2015 - - $598 $1,633
2014 - - $550 $1,485
2013 - - $484 $1,253
2012 - - $452 $1,179
2011 $689 $1,742 $343 $1,098
2010 $540 $1,599 $331 $996
2009 $643 $1,577 $369 $899
2008 $490 $1,547 $316 $845
2007 $480 $1,727 $237.1 $770
2006 $448 $1,682 $189.3 $693
2005 $413 $1,674 $158.2 $625
2004 $427 $1,621 $133.2 $558
2003 $349 $1,621 $116.8 $493
2002 $305 $1,702 $109.6 $509
2001 $325 $1,684 $118.5 $509
2000 $314 $1,558 $122.3 $474
1999 $311 $1,597 $120.7 $450
1998 $342 $1,598 $126.5 $436
1997 $319 $1,573 $143.4 $461
1996 $326 $1,449 $147.3 $453
1995 $285.4 $1,369 $136.5 $409
1994 $277.8 $1,379 $127.7 $391
1993 $252.1 $1,149 $168.5 $384
1992 $265.2 $1,021 $207.4 $343
1991 - - $277.6 $383
1990 - - $262.1 $417
1989 - - $256.4 -
1988 - - $253.2 -
1987 - - $254.1 -
1986 - - $246 -
1985 - - $243.9 -
1984 - - $214.2 -
1983 - - $232.7 -
1982 - - $215.3 -
1981 - - $212.7 -
1980 - - $203.7 -
1979 - - $192.4 -
1978 - - $178.3 -
1977 - - $170.4 -
1976 - - $152 -
1975 - - $144.3 -
1974 - - $147.9 -
1973 - - $134.9 -
1972 - - $119.8 -
1971 - - $112.7 -
1970 - - $109.4 -
1969 - - $102.3 -
1968 - - $99.5 -
1967 - - $96.1 -
1966 - - $93.2 -
1965 - - $88.9 -
1964 - - $83.8 -
1963 - - $79.2 -
1962 - - $77.8 -
1961 - - $76.7 -
1960 - - $75.3 -

Data sources: World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06).

GeoRank.org/economy/eritrea/ethiopia | CC BY

Eritrea's GDP per capita is $689, ranking 188/197, compared to $1,134 in Ethiopia, ranking 171/197. Adjusted for purchasing power (GDP per capita PPP), Eritrea ranks 191st at $1,742, while Ethiopia ranks 175th at $3,288.

Economic indicators

Eritrea Ethiopia
Gross domestic product
$2.07B
2011
$150B
2024
GDP rank
179/197
2011
60/197
2024
GDP growth
8.68%
2010-2011
7.61%
2023-2024
GDP per capita
$689
2011
$1,134
2024
GDP per capita rank
188/197
2011
171/197
2024
GDP per capita, PPP
$1,742
2011
$3,288
2024
GDP per capita PPP rank
191/197
2011
175/197
2024
Government debt
$3.54B
2011
$48.9B
2024
Debt-to-GDP ratio
260.4%
2019
32.7%
2024
Government debt per person
$1,182
2011
$370
2024
Government debt per person rank
136/185
2011
172/185
2024
Average annual personal income after taxes
$1,129
2026
$1,946
2026
Income share by richest 10% n/a
24.8%
2021
Income share by poorest 10% n/a
3.5%
2021
Government expenditure, % of GDP
31.3%
2019
9.54%
2024
Consumer prices inflation
1.3%
2018-2019
21%
2023-2024
Unemployment rate
5.8%
2017
3.94%
2021
Population
3700586
139917664

Spending and national debt comparison by year

Eritrea
Spending

Debt
Ethiopia
Spending

Debt
1x
Year % of GDP
Eritrea Ethiopia
Government spending Government debt Government spending Government debt
2024 - - 9.54% 32.7%
2023 - - 10.8% 38.7%
2022 - - 12.7% 46.9%
2021 - - 13.8% 53.8%
2020 - - 14.5% 53.7%
2019 31.3% 260.4% 15.4% 54.7%
2018 26.4% 267.1% 16.1% 58.4%
2017 42.5% 290.4% 18% 55.3%
2016 30.9% 251.2% 17.9% 51.8%
2015 31.1% 271.4% 17.3% 50.7%
2014 21.6% 204.5% 17.5% 44.2%
2013 32.7% 232.4% 17.8% 44.1%
2012 33.3% 171.6% 16.6% 39.4%
2011 32.3% 171.6% 18.2% 44.6%
2010 42.4% 201.8% 18.5% 39.4%
2009 44.9% 207.1% 17.1% 30%
2008 69.4% 259.7% 18.8% 56.1%
2007 51.2% 201.3% 20.5% 55.7%
2006 50.5% 199% 22.1% 79.6%
2005 76.6% 205.4% 22.9% 78.2%
2004 57.1% 193.5% 23.1% 103.1%
2003 58.1% 264% 27% 103.7%
2002 60.1% 243.4% 24.9% 107.4%
2001 59.5% 238.6% 22.4% 97.3%
2000 84.7% 219.1% 25.6% 93.6%
1999 106.1% - 25.8% 94.3%
1998 88% - 20.4% 86%
1997 60.1% - 17.3% 77.4%
1996 68.6% - 18.2% 129%
1995 81.2% - 16.9% 142.3%
1994 50.4% - 17.1% 150.7%
1993 67.2% - 13.4% 136.9%
1992 32.7% - 13.8% 85.4%
1991 - - 16.8% 89.3%
1990 - - 20.3% 91.6%
1989 - - 24% 84.7%
1988 - - 21.6% 84.3%
1987 - - 18.4% 82.3%
1986 - - 19.8% 75.7%
1985 - - 19.7% 67.7%
1984 - - 18.8% 65.4%
1983 - - 21.3% 55.2%
1982 - - 16.4% 48.8%
1981 - - 14.2% 30.6%
1980 - - 13.5% 18.5%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20); International Monetary Fund (IMF) | Public Finances in Modern History (1980–1991, retrieved 2026-02-20).

GeoRank.org/economy/eritrea/ethiopia | CC BY

In 2024, Eritrea's government spending was $666M, accounting for 31.3% of its GDP, while Ethiopia spent $14.3B, or 9.54% of GDP.

Debt-to-GDP ratio is 260.4% in Eritrea and 32.7% in Ethiopia, ranking 2/185 and 150/185, respectively.

Government deficit by year

Deficit/surplus
Eritrea

Ethiopia
1x
Year Deficit/surplus, % of GDP
Eritrea Ethiopia
2024 - -1.99%
2023 - -2.6%
2022 - -4.16%
2021 - -2.77%
2020 - -2.76%
2019 2.72% -2.53%
2018 5.22% -3.03%
2017 -5.74% -3.24%
2016 -1.44% -2.3%
2015 -2.77% -1.95%
2014 -0.12% -2.58%
2013 -7.62% -1.93%
2012 -5.21% -1.17%
2011 -5.5% -1.61%
2010 -16.5% -1.32%
2009 -22.2% -0.93%
2008 -38% -2.88%
2007 -19.8% -3.57%
2006 -15.5% -3.79%
2005 -31% -4.12%
2004 -7.65% -2.65%
2003 6.23% -5.59%
2002 -13.3% -5.76%
2001 -9.62% -3.76%
2000 -25.4% -8.88%
1999 -59.7% -8.23%
1998 -40.3% -3.51%
1997 -5.65% -1.7%
1996 -18.4% -3.81%
1995 -22.9% -2.68%
1994 8.69% -5.23%
1993 4.22% -4%
1992 6.85% -4.78%
1991 - -5.83%
1990 - -6.66%
1989 - -4.33%
1988 - -3.48%
1987 - -3.54%
1986 - -3.98%
1985 - -4.71%
1984 - -3.69%
1983 - -7.59%
1982 - -3.6%
1981 - -2.19%
1980 - -2.56%

Data sources: International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20); International Monetary Fund (IMF) | Public Finances in Modern History (1980–1989, retrieved 2026-02-20).

GeoRank.org/economy/eritrea/ethiopia | CC BY

In 2011, Eritrea's government deficit, the difference between spending and revenue, was $114M, equivalent to 5.5% of GDP. This compares to Ethiopia's deficit of $514M, or 1.61% of GDP.

Over the past 20 years, Eritrea recorded a fiscal deficit in 16 of those years, while Ethiopia ran a deficit in 20 years. On average, Eritrea posted an annual deficit equal to 16.3% of GDP, compared to deficit of 3.94% of GDP for Ethiopia.

Inflation comparison by year

Inflation
Eritrea

Ethiopia
1x
Year Consumer prices inflation
Eritrea Ethiopia
2024 - 21%
2023 - 30.2%
2022 - 33.9%
2021 - 26.8%
2020 - 20.4%
2019 1.3% 15.8%
2018 -14.4% 13.8%
2017 -13.3% 10.7%
2016 -5.6% 6.63%
2015 28.5% 9.57%
2014 8.4% 6.89%
2013 6.3% 7.46%
2012 6% 23.6%
2011 5.9% 33.2%
2010 10.3% 8.15%
2009 33.9% 8.48%
2008 22.2% 44.4%
2007 9.4% 17.2%
2006 7.7% 12.3%
2005 12.5% 9.97%
2004 25.1% 3.33%
2003 22.7% 13.7%
2002 16.9% 0.68%
2001 14.6% -8.24%
2000 19.9% 0.66%
1999 8.4% 7.94%
1998 9.5% 0.89%
1997 3.7% 2.4%

Data sources: World Bank | Economy & Growth (1997–2024, retrieved 2026-04-06); International Monetary Fund (IMF) | World Economic Outlook (1997–2019, retrieved 2026-02-20).

GeoRank.org/economy/eritrea/ethiopia | CC BY

Over the past 23 years, Eritrea has recorded an average annual inflation rate of 10.4%, compared with 10.9% in Ethiopia. In 2019, inflation was 1.3% in Eritrea and 21% in Ethiopia.

Top exports between countries

Eritrea
Export category Export value
Ethiopia
Export category Export value
Machinery & equipment $17K
Textiles & consumer goods $15K
Wood & paper products $5K
Raw agricultural goods $1K

Balance of trade

Eritrea Ethiopia
Current account balance
-$105M
2000
-$3.79B
2024
Current account balance ranking
89/190
2000
160/190
2024
Current account balance, % of GDP
-14.8%
2000
-2.53%
2024
Goods imports
$471M
2000
$19.6B
2024
Goods exports
$36.8M
2000
$5.58B
2024
Service imports
$28.5M
2000
$5.51B
2024
Service exports
$60.9M
2000
$7.61B
2024
Imports of goods and services, % of GDP
29.2%
2011
11.9%
2024
Exports of goods and services, % of GDP
18.2%
2011
5.54%
2024

Economic freedom indices

The indices of economic freedom below are issued by the Heritage Foundation. Higher scores indicate stronger economic health.

Eritrea Ethiopia
Economic freedom 39.6 48.1
Economic freedom ranking 188/197 171/197
Property rights 4.8 22.1
Government integrity 10.9 33.2
Judicial effectiveness 5.5 19.1
Tax burden 80.3 78.6
Government spending 62.3 96.4
Fiscal health 69 84.3
Business freedom 30.7 44.5
Labor freedom 43.4 37.8
Monetary freedom 80 53.7
Trade freedom 68.4 57.4
Investment freedom 0 30
Financial freedom 20 20

Economic freedom comparison by year

Eritrea
Ethiopia
1x
Year Economic freedom index
Eritrea Ethiopia
2026 39.6 48.1
2025 38.6 48.1
2024 39.5 47.9
2023 39.5 48.3
2022 39.7 49.6
2021 42.3 51.7
2020 38.5 53.6
2019 38.9 53.6
2018 41.7 52.8
2017 42.2 52.7
2016 42.7 51.5
2015 38.9 51.5
2014 38.5 50
2013 36.3 49.4
2012 36.2 52
2011 36.7 50.5
2010 35.3 51.2
2009 38.5 53
2008 - 52.5
2007 - 53.6
2006 - 50.9
2005 - 51.1
2004 - 54.5
2003 - 48.8
2002 - 49.8
2001 - 48.9
2000 - 50.2
1999 - 46.7
1998 - 49.2
1997 - 48.1
1996 - 45.9
1995 - 42.6

Data sources: The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09).

GeoRank.org/economy/eritrea/ethiopia | CC BY

The Economic Freedom Index for Eritrea is 39.6, ranking 188/197, compared to 48.1 for Ethiopia, ranking 171/197. The chart above displays a comparison of annual changes in economic freedom indexes.

Other economic metrics

Eritrea Ethiopia
Services, % of GDP n/a
37.5%
2024
Industry, % of GDP
21.8%
2009
25.4%
2024
Agriculture, forestry, and fishing, % of GDP
14.1%
2009
34.8%
2024
GNI, Atlas method
$1.94B
2011
$146B
2024
GNI per capita, PPP
$1,720
2011
$3,280
2024
Total reserves including gold
$192M
2019
$3.78B
2024
Total reserves ranking
170/177
2019
109/177
2024
Net foreign direct investment
-$27.9M
2000
-$4.02B
2024
Net inflows of foreign direct investment
-$27.9M
2024
$4.02B
2024
Net outflows of foreign direct investment
$0
2024
$0
2024
Servicing debt to the IMF, % of GNI
1.07%
2011
0.91%
2024
Poverty at national poverty lines
50%
2020
33.1%
2021
Gross capital formation, % of GDP
12.6%
2011
20.6%
2024

GDP per capita map

1x

Data sources: World Bank | Economy & Growth (1985–2024, retrieved 2026-04-06); U.S. Census Bureau (1985–2024, retrieved 2026-02-08).

GeoRank.org/economy/eritrea/ethiopia | CC BY

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Data sources:

  1. World Bank | Economy & Growth (1960–2024, retrieved 2026-04-06)
  2. International Monetary Fund (IMF) | Fiscal Monitor (1990–2024, retrieved 2026-02-20)
  3. The Heritage Foundation | Economic Freedom Index (1995–2026, retrieved 2026-03-09)
  4. International Monetary Fund (IMF) | Public Finances in Modern History (1980–1991, retrieved 2026-02-20)
  5. U.S. Census Bureau (1985–2024, retrieved 2026-02-08)
  6. TradeMap (2021–2023, retrieved 2026-02-08)
  7. Central Intelligence Agency (CIA) (2017–2020, retrieved 2026-02-20)
  8. United Nations | World Population Prospects (2026, retrieved 2026-03-10)
  9. LivingCost (2026, retrieved 2025-10-14)

Creative Commons Attribution (CC BY) — you’re free to copy, share, remix, adapt, and use even commercially as long as you give appropriate credit and clearly indicate if you made changes. Other sources may be subject to different license terms.

The current account balance is the sum of net trade in goods and services, net earnings from cross-border investments, and net transfer payments. It reflects a country's economic transactions with the rest of the world and is a fundamental component of the balance of payments. A surplus indicates that a country exports more than it imports, while a deficit shows the opposite.

Gross National Income (GNI) measures a country's total income. It encompasses income earned by residents, businesses, and foreign sources, defined as employee compensation and investment profits. GNI adds product taxes not included elsewhere and subtracts subsidies. It accounts for income from residents working abroad but excludes earnings from foreigners within the country.

A negative value for Net Foreign Direct Investment indicates a country is a net receiver of investments, as foreign inflows exceed outflows after Balance of Payments adjustments. A positive value indicates a net provider, with outflows exceeding inflows. Inflows are credits (increasing foreign claims on domestic assets), while outflows are debits (increasing domestic assets abroad).

Foreign direct investment (FDI, net inflows) shows how much capital foreign investors bring into a country after accounting for any funds that flow back in the opposite direction. It represents the net value of overseas companies establishing, expanding, or financing businesses in the reporting country. A positive number means more capital entered the country than was withdrawn, while a negative number means foreign investors pulled out more than they invested.

Foreign direct investment (FDI, net outflows) shows how much capital residents of a country invest abroad after accounting for any funds that flow back in the opposite direction. It represents the net value of domestic companies establishing, expanding, or financing businesses in other countries. A positive number means more capital was invested abroad than withdrawn, while a negative number means residents pulled back more than they invested.

Principal and interest payments to the IMF in currency, goods, or services on long-term debt expressed as a share of GNI.

Formerly gross domestic investment, gross capital formation measures the share of a country’s economic output invested in fixed assets, including buildings, machinery, and infrastructure. It indicates how much of the economy is devoted to building productive capacity.