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, GDP 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 (FDI), 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.

To support industrialization in sectors where Ethiopia has a comparative advantage, such as textiles and garments, leather goods, and processed agricultural products, 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):
$200.6 billion (2017 est.)
$181 billion (2016 est.)
$167.6 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 64
[see also: GDP country ranks ]

GDP (official exchange rate):
$80.87 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
10.9% (2017 est.)
8% (2016 est.)
10.4% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 5
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$2,200 (2017 est.)
$2,000 (2016 est.)
$1,900 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 204
[see also: GDP - per capita country ranks ]

Gross national saving:
32.1% of GDP (2017 est.)
32.7% of GDP (2016 est.)
32.4% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 26
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 69.6% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 10% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 43.5% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: -0.1% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 8.1% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -31.2% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 34.8% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 21.6% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 43.6% (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 (CIA rank, may be based on non-current data): 13
[see also: Industrial production growth rate country ranks ]

Labor force:
52.82 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 13
[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 (CIA rank, may be based on non-current data): 180
[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)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
33 (2011)
30 (2000)
country comparison to the world (CIA rank, may be based on non-current data): 114
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 11.24 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 13.79 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
13.9% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 203
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3.2% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 139
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
54.2% of GDP (2017 est.)
53.2% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 83
[see also: Public debt country ranks ]

Fiscal year:
8 July - 7 July

Inflation rate (consumer prices):
9.9% (2017 est.)
7.3% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 203
[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:
13.5% (31 December 2017 est.)
12.2% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 54
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$9.042 billion (31 December 2017 est.)
$8.757 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 85
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$9.042 billion (31 December 2017 est.)
$8.757 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 87
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$27.66 billion (31 December 2017 est.)
$25.78 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 84
[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:
-$6.551 billion (2017 est.)
-$6.574 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 187
[see also: Current account balance country ranks ]

Exports:
$3.23 billion (2017 est.)
$2.814 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 126
[see also: Exports country ranks ]

Exports - partners:
Sudan 23.3%, Switzerland 10.2%, China 8.1%, Somalia 6.6%, Netherlands 6.2%, US 4.7%, Germany 4.7%, Saudi Arabia 4.6%, UK 4.6% (2017)

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%)

Imports:
$15.59 billion (2017 est.)
$14.69 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 88
[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 24.1%, Saudi Arabia 10.1%, India 6.4%, Kuwait 5.3%, France 5.2% (2017)

Reserves of foreign exchange and gold:
$3.013 billion (31 December 2017 est.)
$3.022 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 110
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$26.05 billion (31 December 2017 est.)
$24.82 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 87
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
(31 December 2009 est.)
[see also: Stock of direct foreign investment - at home country ranks ]

Exchange rates:
birr (ETB) per US dollar -
25 (2017 est.)
21.732 (2016 est.)
21.732 (2015 est.)
21.55 (2014 est.)
19.8 (2013 est.)