Eritrea's Economy To Grow by 8.5% in 2013 -
EIU<
http://www.madote.com/2012/12/eritreas-economy-to-grow-by-85-in-2013.html>
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Regional GDP Growth Rates
Country
2011
2012
_2013_
Eritrea
17%
7.5%
8.5%
Ethiopia
7.5%
5.0%
5.5%
Djibouti
4.5%
4.8%
5.0%
Sudan
-3.9%
-7.3%
3.6%
Sources: EIU, IMF, RB
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 <
http://country.eiu.com/Eritrea>) 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.
Natna.com
http://natna.wordpress.com/2012/12/01/eritrea-economic-growth-8-5-in-2013/
Madote.com, based on Economist Intelligence Unit (EIU) study, reported that
Eritrea’s economy is expected to be *one of the highest in the world and
definitely the highest in East Africa.* ”Eritrea 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 report claims the
economy ”will be driven by higher agriculture output, increased
development activities and Nevsun Resources raising production forecast for
its Bisha mine.” Moreover the report according to Madote
stated:<
http://www.madote.com/2012/12/eritreas-economy-to-grow-by-85-in-2013.html>
“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.”
Economist Intelligence Unit (EIU) among other things clearly states:
“Real GDP growth is forecast at 8.5% in 2013 and 6% in 2014 driven
by activity in the mining sector.”
[Editorial Note: Although Eritrea's economy will grow as a result of
"higher agriculture output, increased development activities", Nevsun I
anticipate will not be the main driver in 2013.
As Nevsun reported in its last quarterly update, it will not be a
significant player past the first quarter of 2013. As Nevsun transitions
from gold to copper producer it will most likely, for a short period of
time, shutdown production. Second, starting the present quarter Nevsun
anticipates gold production and gold grades to drop significantly. Hence
Nevsun's accessing of the Sudan's new gold refining capacity may not play a
substantial role. It is also debatable if Nevsun will utilise that
facility. Eritrea's economic growth rate will most likely be driven by
agriculture and infrastructure development, as well as, the optimisation
and rationalisation of recently developed economic and social
infrastructures. Additionally, since mining will play a smaller role in
2013, the restarting of the mine and the start of copper production early
2014 or late 2013 will additionally boost GDP growth in 2014. Hence Eritrea
growth rate is bound to be much higher than the forecasted 6% growth rate
for 2014 as a result of production resumption in Bisha.
Mining will remain a significant driver in the future of Eritrea's economy,
however, it is the synergy between this sector and other developments
drivers will produce much higher economic and social dividends.]
For some infrastructure and social services development see Madote’s
report:
http://www.madote.com/2012/12/eritrea-africas-champion-of-progress.html
Received on Sun Dec 02 2012 - 20:01:24 EST
