Government Expenditure: Eritrea

Analysis# Eritrea Government Expenditure Eritrea's government expenditure stood at 31.519% of GDP in 2026, representing a substantial decline from its all-time peak of 76.57% in 2005. The country has reduced spending by 44.8% since 2004, though current levels remain well above the historical low of 21.598% recorded in 2014. This middle-ground positioning reflects a significant fiscal consolidation effort over the past two decades. A dramatic shift occurred between 2017 and 2018, when expenditure plummeted from 42.491% to 26.357% of GDP—a 38% contraction in a single year. Since 2018, spending has stabilized in the 31-33% range, with recent years showing minimal fluctuation. The 2026 projection suggests Eritrea's expenditure trajectory has plateaued near current levels, indicating a stabilized fiscal framework following decades of volatility.