Current Account Balance: Eritrea

Analysis# Eritrea Current Account Balance Eritrea's current account balance stood at 13% of GDP in 2019, reflecting a dramatic 58.1% decline from 1992 levels. The country experienced extreme volatility across its 28-year data range, peaking at 37% of GDP in 1994 before plummeting to -33.3% in 1999. This swing of 70.3 percentage points underscores Eritrea's economic instability during its early independence period and subsequent recovery phases. Recent years show significant fluctuation rather than stabilization. The metric surged to 24.8% in 2017—among the highest in the post-1999 period—before contracting to 13% by 2019. This downward movement in 2018-2019 suggests weakening external account performance, reversing gains from the mid-2010s. Without sustained improvement in merchandise exports or foreign investment, Eritrea's current account balance may face continued pressure.