Eritrea was awarded to Ethiopia in 1952 as part of a federation. Ethiopia's annexation of Eritrea as a province 10 years later sparked a 30-year struggle for independence that ended in 1991 with Eritrean rebels defeating governmental forces; independence was overwhelmingly approved in a 1993 referendum.

A two-and-a-half-year border war with Ethiopia that erupted in 1998 ended under UN auspices in December 2000. Eritrea currently hosts a UN peacekeeping operation that is monitoring a 25 km-wide Temporary Security Zone on the border with Ethiopia.

An international commission, organized to resolve the border dispute, posted its findings in 2002.

However, both parties have been unable to reach agreement on implementing the decision.

In November 2006, the international commission informed Eritrea and Ethiopia they had one year to demarcate the border or the border demarcation would be based on coordinates.

Source: CIA World Fact Book

Population: 4,906,585 (July 2007 est.)

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Age structure: 0-14 years: 43.5% (male 1,073,404/female 1,060,674) 15-64 years: 52.9% (male 1,286,613/female 1,310,294) 65 years and over: 3.6% (male 85,052/female 90,548) (2007 est.)

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Median age: total: 17.9 years male: 17.7 years female: 18.2 years (2007 est.)

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Population growth rate: 2.461% (2007 est.)

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Birth rate: 33.97 births/1,000 population (2007 est.)

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Death rate: 9.36 deaths/1,000 population (2007 est.)

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Net migration rate: 0 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.03 male(s)/female under 15 years: 1.012 male(s)/female 15-64 years: 0.982 male(s)/female 65 years and over: 0.939 male(s)/female total population: 0.993 male(s)/female (2007 est.)

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Infant mortality rate: total: 45.24 deaths/1,000 live births male: 51.05 deaths/1,000 live births female: 39.25 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 59.55 years male: 57.88 years female: 61.28 years (2007 est.)

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Total fertility rate: 4.96 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: 2.7% (2003 est.)

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HIV/AIDS - people living with HIV/AIDS: 60,000 (2003 est.)

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HIV/AIDS - deaths: 6,300 (2003 est.)

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Major infectious diseases: degree of risk: high food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever vectorborne disease: malaria is a high risk in some locations (2007)

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Nationality: noun: Eritrean(s) adjective: Eritrean

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Ethnic groups: Tigrinya 50%, Tigre and Kunama 40%, Afar 4%, Saho (Red Sea coast dwellers) 3%, other 3%

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Religions: Muslim, Coptic Christian, Roman Catholic, Protestant

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Languages: Afar, Arabic, Tigre and Kunama, Tigrinya, other Cushitic languages

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Literacy: definition: age 15 and over can read and write total population: 58.6% male: 69.9% female: 47.6% (2003 est.)

Since independence from Ethiopia in 1993, Eritrea has faced the economic problems of a small, desperately poor country, accentuated by the recent implementation of 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, the economy is largely based on subsistence agriculture, with 80% of the population involved in farming and herding. The Ethiopian-Eritrea war in 1998-2000 severely hurt Eritrea's economy. GDP growth fell to zero in 1999 and to -12.1% in 2000. The May 2000 Ethiopian offensive into northern Eritrea caused some $600 million in property damage and loss, including losses of $225 million in livestock and 55,000 homes. The attack prevented 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, asphalting new roads, improving its ports, and repairing war-damaged roads and bridges. Since the war ended, the government has maintained a firm grip on the economy, expanding the use of the military and party-owned businesses to complete Eritrea's development agenda. In January 2005, the government essentially banned all imports. The government strictly controls the use of foreign currency, limiting access and availability. Few private enterprises remain in Eritrea. Eritrea's economy is heavily dependent on taxes paid by members of the diaspora. Erratic rainfall and the delayed demobilization of agriculturalists from the military continue to interfere with agricultural production, and Eritrea's recent harvests have not been able to meet the food needs of the country. Eritrea's economic future depends upon its ability to master social problems such as illiteracy, unemployment, and low skills, and more importantly, on the government's willingness to support a true market economy.

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GDP (purchasing power parity): $4.751 billion (2006 est.)

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GDP (official exchange rate): $1.244 billion (2005 est.)

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GDP - real growth rate: 2% (2005 est.)

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GDP - per capita (PPP): $1,000 (2005 est.)

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GDP - composition by sector: agriculture: 9.9% industry: 25.4% services: 64.6% (2006 est.)

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Labor force: NA

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Labor force - by occupation: agriculture: 80% industry and services: 20%

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Unemployment rate: NA%

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Population below poverty line: 50% (2004 est.)

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Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

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Inflation rate (consumer prices): 14% (2006 est.)

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Investment (gross fixed): 24.5% of GDP (2006 est.)

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Budget: revenues: $257.6 million expenditures: $424 million; including capital expenditures of $NA (2006 est.)

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Agriculture - products: sorghum, lentils, vegetables, corn, cotton, tobacco, sisal; livestock, goats; fish

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Industries: food processing, beverages, clothing and textiles, light manufacturing, salt, cement

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Industrial production growth rate: NA%

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Electricity - production: 276.1 million kWh (2004)

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Electricity - consumption: 256.7 million kWh (2004)

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Electricity - exports: 0 kWh (2004)

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Electricity - imports: 0 kWh (2004)

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Oil - production: 0 bbl/day (2004 est.)

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Oil - consumption: 5,300 bbl/day (2004 est.)

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Oil - exports: NA bbl/day

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Oil - imports: NA bbl/day

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Oil - proved reserves: 0 bbl

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Natural gas - production: 0 cu m (2004 est.)

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Natural gas - consumption: 0 cu m (2004 est.)

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Current account balance: -$440.5 million (2006 est.)

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Exports: $17.65 million f.o.b. (2006 est.)

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Exports - commodities: livestock, sorghum, textiles, food, small manufactures (2000)

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Exports - partners: Italy 31.4%, US 11.9%, Belarus 5.9%, France 5.1%, Germany 4.6%, Turkey 4.4%, UK 4% (2006)

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Imports: $701.8 million f.o.b. (2006 est.)

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Imports - commodities: machinery, petroleum products, food, manufactured goods

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Imports - partners: Italy 15.1%, France 11.8%, US 9.5%, Germany 8.6%, Taiwan 7.3%, India 7%, Ireland 6.1%, Turkey 4.4%, Jordan 4.2% (2006)

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Reserves of foreign exchange and gold: $30.6 million (2006 est.)

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Debt - external: $311 million (2000 est.)

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Economic aid - recipient: $77 million (1999)

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Currency (code): nakfa (ERN)

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Exchange rates: nakfa (ERN) per US dollar - 15.4 (2006), 14.5 (2005), 13.788 (2004), 13.878 (2003), 13.958 (2002) note: the official exchange rate is 15 nakfa to the dollar

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Fiscal year: calendar year