Overview: With the independence of Eritrea on 27 April 1993, Ethiopia continues to face difficult economic problems as one of the poorest and least developed countries in Africa. (The accompanying analysis and figures predate the independence of Eritrea.) Its economy is based on subsistence agriculture, which accounts for about 45% of GDP, 90% of exports, and 80% of total employment; coffee generates 60% of export earnings. The manufacturing sector is heavily dependent on inputs from the agricultural sector. Over 90% of large-scale industry, but less than 10% of agriculture, is state run; the government is considering selling off a portion of state-owned plants. Favorable agricultural weather largely explains the 4.5% growth in output in FY89, whereas drought and deteriorating internal security conditions prevented growth in FY90. In 1991 the lack of law and order, particularly in the south, interfered with economic development and growth. In 1992, because of some easing of civil strife and aid from the outside world, the economy substantially improved.

National product: GDP - purchasing power equivalent - $22.7 billion (1993 est.)

National product real growth rate: 7.8% (FY93 est)

National product per capita: $400 (1993 est.)

Inflation rate (consumer prices): 21% (1992 est)

Unemployment rate: NA%

Budget:
revenues: $NA
expenditures: $1.2 billion, including capital expenditures of $NA (1992 est.)

Exports: $189 million (f.o.b., FY91)
commodities: coffee, leather products, gold, petroleum products
partners: Germany, Japan, Saudi Arabia, France, Italy

Imports: $472 million (c.i.f., FY91)
commodities: capital goods, consumer goods, fuel
partners: US, Germany, Italy, Saudi Arabia, Japan

External debt: $3.48 billion (1991)

Industrial production: growth rate -3.3% (FY92); accounts for 12% of GDP

Electricity:
capacity: 330,000 kW
production: 650 million kWh
consumption per capita: 10 kWh (1991)

Industries: food processing, beverages, textiles, chemicals, metals processing, cement

Agriculture: accounts for 47% of GDP and is the most important sector of the economy even though frequent droughts and poor cultivation practices keep farm output low; famines not uncommon; export crops of coffee and oilseeds grown partly on state farms; estimated 50% of agricultural production at subsistence level; principal crops and livestock - cereals, pulses, coffee, oilseeds, sugarcane, potatoes and other vegetables, hides and skins, cattle, sheep, goats

Illicit drugs: transit hub for heroin originating in Southwest and Southeast Asia and destined for Europe and North America as well as cocaine destined for southern African markets; cultivates qat (chat) for local use and regional export

Economic aid:
recipient: US commitments, including Ex-Im (FY70-89), $504 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $3.4 billion; OPEC bilateral aid (1979-89), $8 million; Communist countries (1970-89), $2 billion

Currency: 1 birr (Br) = 100 cents
Exchange rates: birr (Br) per US$1 - 5.0000 (fixed rate since 1992); fixed at 2.070 before 1992

Fiscal year: 8 July - 7 July

NOTE: The information regarding Ethiopia on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Ethiopia Economy 1995 information contained here. All suggestions for corrections of any errors about Ethiopia Economy 1995 should be addressed to the CIA.