December 1, 2012 — Eritrea’s red hot economy is expected to maintain a growth rate of 8.5 percent in 2013, according to the Economist Intelligence Unit (EIU) in its annual country report.
The EIU says growth outlook for 2013 will be driven by higher agriculture output, increased development activities and Nevsun Resources raising production forecast for its Bisha mine.
Eritrea gaining access to Sudan's recently built gold refinery plant will also lower production costs at Bisha and increase public revenue from the mine, the London-based financial group said.
Despite high energy costs and some macroeconomic imbalances hindering the economy, the Government of Eritrea forecasts GDP growth levels between 7-10 percent for 2012-2015 period.
Regionally, Sudan will bounce back and grow by 3.6 percent after its economy retracted following the secession of South Sudan and the subsequent loss of most of its oil revenues, the report said.
|Eritrea is projected to have the fastest-growing economy in East Africa in 2013|