Eritrea was affected by a locust invasion and the COVID–19 pandemic, which combined to impede economic activity in 2020. Real GDP is expected to decline by 0.6%, compared with growth of 3.8% in 2019. Pandemic-related disruptions of supply chains and working hours, and containment measures such as travel restrictions hurt growth. Subdued private consumption and investment, together with reduced net exports, also contributed to the decline in GDP. After deflation of 16.4% in 2019, prices rose 4.7% in 2020—in part because of COVID–19-induced disruptions in regional and global supply chains. The fiscal deficit widened to 5.2% of GDP in 2020, compared with 1.6% in 2019.  […]