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Ethiopia Economy 2018

SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES











Ethiopia Economy 2018
SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 28, 2018

Economy - overview:
Ethiopia - the second most populous country in Africa - is a one-party state with a planned economy. For more than a decade before 2016, Ethiopia grew at a rate between 8% and 11% annually – one of the fastest growing states among the 188 IMF member countries. This growth was driven by government investment in infrastructure, as well as sustained progress in the agricultural and service sectors. More than 70% of Ethiopia’s population is still employed in the agricultural sector, but services have surpassed agriculture as the principal source of GDP.Ethiopia has the lowest level of income-inequality in Africa and one of the lowest in the world, with a Gini coefficient comparable to that of the Scandinavian countries. Yet despite progress toward eliminating extreme poverty, Ethiopia remains one of the poorest countries in the world, due both to rapid population growth and a low starting base. Changes in rainfall associated with world-wide weather patterns resulted in the worst drought in 30 years in 2015-16, creating food insecurity for millions of Ethiopians.The state is heavily engaged in the economy. Ongoing infrastructure projects include power production and distribution, roads, rails, airports and industrial parks. Key sectors are state-owned, including telecommunications, banking and insurance, and power distribution. Under Ethiopia's constitution, the state owns all land and provides long-term leases to tenants. Title rights in urban areas, particularly Addis Ababa, are poorly regulated, and subject to corruption.Ethiopia’s foreign exchange earnings are led by the services sector - primarily the state-run Ethiopian Airlines - followed by exports of several commodities. While coffee remains the largest foreign exchange earner, Ethiopia is diversifying exports, and commodities such as gold, sesame, khat, livestock and horticulture products are becoming increasingly important. Manufacturing represented less than 8% of total exports in 2016, but manufacturing exports should increase in future years due to a growing international presence.The banking, insurance, telecommunications, and micro-credit industries are restricted to domestic investors, but Ethiopia has attracted roughly $8.5 billion in foreign direct investment, mostly from China, Turkey, India and the EU; US FDI is $567 million. Investment has been primarily in infrastructure, construction, agriculture/horticulture, agricultural processing, textiles, leather and leather products.In the fall of 2015, the government finalized and published the current 2016-20 five-year plan, known as the Growth and Transformation Plan II, which emphasizes developing manufacturing in sectors where Ethiopia has a comparative advantage, such as textiles and garments, leather goods, and processed agricultural products. To support industrialization, Ethiopia plans to increase installed power generation capacity by 8,320 MW, up from a capacity of 2,000 MW, by building three more major dams and expanding to other sources of renewable energy. In 2017, the government devalued the birr by 15% to increase exports and alleviate a chronic foreign currency shortage in the country.

GDP (purchasing power parity):
$195.8 billion (2017 est.) $180.5 billion (2016 est.) $167.2 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 65

GDP (official exchange rate):
$79.74 billion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
8.5% (2017 est.) 8% (2016 est.) 10.4% (2015 est.)
country comparison to the world: 4
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$2,100 (2017 est.) $2,000 (2016 est.) $1,900 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 206

Gross national saving:
28.9% of GDP (2017 est.) 32% of GDP (2016 est.) 31.3% of GDP (2015 est.)
country comparison to the world: 30
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 70.5%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 10.5%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 41.9%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: -0.1%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 8.1%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -31% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 35.8%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 22.2%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 42% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
cereals, coffee, oilseed, cotton, sugarcane, vegetables, khat, cut flowers; hides, cattle, sheep, goats; fish

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

Industrial production growth rate:
10.5% (2017 est.)
country comparison to the world: 9
[see also: Industrial production growth rate country ranks ]

Labor force:
52.82 million (2017 est.)
country comparison to the world: 14
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 72.7%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 7.4%
[see also: Labor force - by occupation - industry country ranks ]
services: 19.9% (2013 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
17.5% (2012 est.) 18% (2011 est.)
country comparison to the world: 179
[see also: Unemployment rate country ranks ]

Population below poverty line:
29.6% (2014 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 4.1%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 25.6% (2005)

Distribution of family income - Gini index:
33 (2011) 30 (2000)
country comparison to the world: 108
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $12.11 billion
[see also: Budget - revenues country ranks ]
expenditures: $14.63 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
15.2% of GDP (2017 est.)
country comparison to the world: 185
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3.2% of GDP (2017 est.)
country comparison to the world: 122
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
60.2% of GDP (2017 est.) 54.5% of GDP (2016 est.)
country comparison to the world: 74
[see also: Public debt country ranks ]

Fiscal year:
8 July - 7 July

Inflation rate (consumer prices):
8.1% (2017 est.) 7.3% (2016 est.)
country comparison to the world: 199
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
NA%
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
13% (31 December 2017 est.) 12.2% (31 December 2016 est.)
country comparison to the world: 62
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$14.92 billion (31 December 2017 est.) $14.56 billion (31 December 2016 est.)
country comparison to the world: 73
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$28.53 billion (31 December 2017 est.) $28.21 billion (31 December 2016 est.)
country comparison to the world: 79
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$39.26 billion (31 December 2017 est.) $36.37 billion (31 December 2016 est.)
country comparison to the world: 71
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$6.592 billion (2017 est.) -$7.206 billion (2016 est.)
country comparison to the world: 180
[see also: Current account balance country ranks ]

Exports:
$3.076 billion (2017 est.) $2.814 billion (2016 est.)
country comparison to the world: 124
[see also: Exports country ranks ]

Exports - commodities:
coffee (27%, by value), oilseeds (17%), edible vegetables including khat (17%), gold (13%), flowers (7%), live animals (7%), raw leather products (3%), meat products (3%)

Exports - partners:
US 9.7%, Saudi Arabia 9.6%, Germany 8.5%, Switzerland 7.5%, China 5.1%, UAE 4.9%, Pakistan 4.4% (2016)

Imports:
$16.76 billion (2017 est.) $16.03 billion (2016 est.)
country comparison to the world: 82
[see also: Imports country ranks ]

Imports - commodities:
machinery and aircraft (14%, by value), metal and metal products, (14%), electrical materials, (13%), petroleum products (12%), motor vehicles, (10%), chemicals and fertilizers (4%)

Imports - partners:
China 28.8%, US 8%, India 6.7%, Kuwait 5% (2016)

Reserves of foreign exchange and gold:
$3.147 billion (31 December 2017 est.) $3.022 billion (31 December 2016 est.)
country comparison to the world: 103
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$29.09 billion (31 December 2017 est.) $24.82 billion (31 December 2016 est.)
country comparison to the world: 82
[see also: Debt - external country ranks ]

Exchange rates:
birr (ETB) per US dollar - 23.6 (2017 est.) 21.732 (2016 est.) 21.732 (2015 est.) 21.55 (2014 est.) 19.8 (2013 est.)


NOTE: 1) The information regarding Ethiopia on this page is re-published from the 2018 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Ethiopia Economy 2018 information contained here. All suggestions for corrections of any errors about Ethiopia Economy 2018 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) The assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order






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