Ethiopia and Eritrea
The 2018 opening between Ethiopia and Eritrea contrasts with a new diplomatic rupture announced by Eritrea in October 2026. Mutual allegations of hostility accompany the closure of official channels.
Analysis reviewed: 2026-10-08 · Indicators updated: 2026-10-08History and institutional framework
The July 2018 peace and friendship declaration opened a process to restore diplomacy, transport and communications between Ethiopia and Eritrea.
Cooperation and bilateral issues
That earlier event contrasts with the Eritrean statement signed on 1 October 2026, which announced the severance of all diplomatic relations.
Bilateral indicators
Blank cells: data unavailable.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | ||
| Goods: Ethiopia to Eritrea | ||
| Goods: Eritrea to Ethiopia | ||
| Services trade | ||
| Export share: Ethiopia to Eritrea | ||
| Export share: Eritrea to Ethiopia | ||
| Investment stock: Ethiopia in Eritrea | ||
| Investment stock: Eritrea in Ethiopia |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
| Indicator | Ethiopia | Eritrea |
|---|---|---|
| Nominal GDP | 126.36 billion USD2025 · WB | |
| GDP per capita | 932.73 USD2025 · WB | |
| GDP growth | 9.77 %2025 · WB | |
| Policy interest rate | ||
| Inflation · annual average | 13.23 %Annual average · 2025 · WB | |
| Inflation · latest year-on-year figure | 15.1 %Headline CPI · 2026-08 · year-on-year · Ethiopian Statistical Service | |
| Unemployment | 3.32 %ILO est.2025 · WB | 5.98 %ILO est.2025 · WB |
| Budget balance (% of GDP) | -1.2 %IMF est.2025 · IMF | |
| Gross public debt (% of GDP) | 43.1 %IMF est.2025 · IMF | |
| Current account balance (% of GDP) | -2.53 %2024 · WB | |
| Population | 135,472,0512025 · WB | 3,607,0032025 · WB |
| Area | 1,136,240 km²2023 · WB | 121,766 km²2023 · WB |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDEthiopia: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.
- GDP per capita
- Current USD per personEthiopia: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.
- GDP growth
- Annual real change (%)Ethiopia: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.
- Policy interest rate
- Central bank instrument (%)
- Inflation · annual average
- Average annual change in headline CPI (%)Ethiopia: 2025 · Annual average change in the CPI (%) · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency statedEthiopia: 2026-08 · National headline CPI, change from the same month of the previous year · Ethiopian Statistical Service · Published: 2026-09-08 · The document says August EFY2018; the ESS profile identifies it as August 2026. Not food inflation or a 12-month moving average. · Alternative official source; verified 2026-10-07
- Unemployment
- % of the labour force; definition used by the stated institutionEthiopia: 2025 · ILO modelled estimate, % of the labour force · World Bank · ILO est. · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Eritrea: 2025 · ILO modelled estimate; percentage of the labour force · World Bank · ILO est. · Annual World Bank observation, with its original year; not monthly data.
- Budget balance
- General government (% of GDP)Ethiopia: 2025 · IMF · IMF est. · IMF WEO estimate, not a monthly observation. Retains the country's fiscal year where it differs from the calendar year.
- Gross public debt
- General government (% of GDP)Ethiopia: 2025 · IMF · IMF est. · IMF WEO estimate, not a monthly observation. Retains the country's fiscal year where it differs from the calendar year.
- Current account balance
- % of GDPEthiopia: 2024 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.
- Population
- PeopleEthiopia: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Eritrea: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Area
- Total area in km²; territorial coverage of the sourceEthiopia: 2023 · World Bank / FAO · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Eritrea: 2023 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
Ethiopia to Eritrea
| Product or sector | Value / share |
|---|---|
Eritrea to Ethiopia
| Product or sector | Value / share |
|---|---|
Connections between people
Contacts between people and relations between governments are distinct dimensions. Published counts appear in the table with their date and definition; a resident community is not inferred from trade or diplomatic representation. [2]
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from Ethiopia living in Eritrea | ||
| Residents from Eritrea living in Ethiopia | ||
| Study and training: Ethiopia in Eritrea | ||
| Study and training: Eritrea in Ethiopia | ||
| Academic stays: Ethiopia in Eritrea | ||
| Academic stays: Eritrea in Ethiopia | ||
| Travel: Ethiopia to Eritrea | ||
| Travel: Eritrea to Ethiopia |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
History and institutional framework
The July 2018 peace and friendship declaration opened a process to restore diplomacy, transport and communications between Ethiopia and Eritrea. The Eritrean account from August that year documented the reopening of its embassy in Addis Ababa and telephone connections. [1] [2]
Recent developments
Recent developments and latest available data · Review: 2026-10-08
Cooperation and bilateral issues
That earlier event contrasts with the Eritrean statement signed on 1 October 2026, which announced the severance of all diplomatic relations. Eritrea's foreign ministry attributed closure of its embassy and the designation of ten diplomats as personae non gratae, including representatives accredited to the African Union, to Ethiopia. The statement rejects Ethiopian hostility allegations and makes its own allegations about access to the sea and support for armed groups. These are one party's positions, not independent conclusions. [1] [2]
The 2018 opening
The peace and friendship declaration of 9 July 2018 ended the state of war and provided for resuming diplomatic relations, transport, trade and communications, as well as implementing the border decision. The Eritrean account from August recorded the reopening of telephone lines and the Eritrean embassy in Addis Ababa during Isaias Afwerki's visit. Ethiopian Airlines had resumed flights to Asmara on 18 July. These events describe the opening at that time, not the continuity of those services after the rupture announced in 2026. [2]
Milestones and consequences
- 2018-07-09
Peace and friendship declaration
The two governments agreed to end the state of war and resume connections and diplomatic relations. [2]
- 2026-10-01
Eritrea announces diplomatic rupture
Eritrea's foreign ministry announced severance of relations in a statement attributing measures against its embassy and diplomats to Ethiopia. [1]
Sources and data
Periods and scope of the figures
Institutional sources and periods accompany each figure. Annual trade, investment positions, residents and visits are distinct measures. Empty cells do not mean zero. Statements of intent are not presented as project implementation or treaties in force.
- Bilateral document — ETH-ERI
Eritrea's Ministry of Information · Institutional source · Accessed: 2026-10-08
- Bilateral document — ETH-ERI
Eritrea's Ministry of Information · Institutional source · Accessed: 2026-10-08