It lies to the north of Ethiopia and forms part of the North East African Region. The official language is Tigrinia but Arabic, Afar and Somali are also spoken. The government is committed to a freemarket economic system and has announced plans to reduce its holdings in some 40 public enterprises. Reliable economic indicators on the performance of the Eritrean economy are scarce, as the country has only recently gained its independence after a long civil war.
Domestic output is boosted by worker remittances.
The country retained the Ethiopian currency, the Birr, after independence. Economic growth in Eritrea is dependent on overcoming social and economic problems such as illiteracy, unemployment, lack of training and the need for foreign investment and streamlining of the bureaucracy. The private sector is a primary area of growth. An immediate threat faced by Eritrea is that of armed conflict with Ethiopia. The Eritrean mining and oil industries are key elements in the economy of the country.