Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Ethiopia country report tenna shitarek, may 2012 1 ethiopia 1. Apr 25, 2017 ethiopia has a mixed market economy, which means businesses are owned by both the public and private sectors. The performances and challenges of growth and transformation. Agriculture, services and industry are the major economic endeavours. Ethiopia economic outlook african development bank. Ethiopian airlines flies passengers to 83 international destinations, 49 of them in africa, and hauls cargo to 24 cities around the globe. At the top left, the capital city of sudan, khartoum, is located at the convergence of the blue nile and the white nile. High inflation has, however, contributed to overvaluation of the ethiopian birr despite the 15% devaluation in 2017, necessitating a gradual shift to a more competitive exchange rate. World bank lauds ethiopias economic growth in a report. Iv 20112015 of the health and education sector development plans. The contribution of livestock to the ethiopian economy part ii article pdf available january 2011 with 10,119 reads how we measure reads.
Prospects and challenges of structural transformation in ethiopia. Browse additional economic indicators and data sets, selected by global finance editors, to learn more about ethiopia. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. Annual report on the ethiopian economy ethiopian economic. Gilgel gibe ii 420 mw and takezze 300 mw and tana beles 460 mw have started generating power. Especially after world war ii, tourism, banking, insurance, and transport began to. Ethiopias ruling party, ethiopian peoples revolutionary democratic front eprdf, which has been in power since 1991 asserted its grip in the countrys politics by clinching 500 out of the 547 available seats in the may 2015 parliamentary elections ethiopia faces terrorist. The contribution of livestock to the ethiopian economy. Based on information available at the time of these discussions, the staff report was completed on september 2, 2015. Pdf the contribution of livestock to the ethiopian 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 robust growth reinforced economic reform and poverty reduction efforts aimed at achieving the mdgs by 2015. Its economy has experienced between 8% and 11% growth over the last 10 years, although for 2014 and 2015 that rate dropped to 5.
Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. The ethiopian economy grew by 8 in 2015 16 due to the recent drought affecting agricultural production with spillovers on the trade sector. Although data showing healthy export growth points to a good start to fiscal year 2019a2020 july 2019july 2020, the outbreak of coronavirus will be taking a heavy toll on the economy. Ethiopias managed float exchange rate foresees a 5%6% annual depreciation to adjust for inflation differentials with trading partners. The dahlak archipelago is seen off the red sea coast of eritrea.
Ethiopia the second most populous country in africa is a oneparty state with a planned economy. The ethiopian economy is based on agriculture, which contributes 45% to gnp and more than 80% of exports, and employs 85% of the population. With a population of about 92 million, ethiopia is the second most populous country in subsaharan africa. Ethiopian society, economy and environment potentials and problems that shape a green economy10. Economic growth remained at a respectable 8% in 2015. In this regard, the country had shown notable progress in expanding two existing sugar factories for the last three years of the gtp. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Ethiopias currently has the fastest growing economy in africa. Shares of services in total exports, 2005 and 2015. On the basis of the achievements of the plan for accelerated and sustained development to end poverty the aims of the growth and transformation. A ccording to the world bank, the ethiopian economy saw strong growth between the years 200304 and 2014. Hydroelectric power production is anticipated to increase to over 10,000 mws by 2015.
Ethiopias economy experienced strong, broadbased growth averaging 9. Though ethiopias economy has been growing at an average rate of 7% in recent years1, the country remains one of the worlds poorest. Its overall score is unchanged, with an improvement in judicial effectiveness offset by a. Tailwinds and headwinds the economic outlook is positive, and real gdp growth is projected to stabilize at 7. Access the latest politics analysis and economic growth summary through 2011 for ethiopia from the economist intelligence unit. This page has economic forecasts for ethiopia including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the ethiopia economy. Socioeconomic context and role of agriculture ethiopia. The new powerhouse of africa abdulkarim hassan matan july 2015. Learn more about the ethiopia economy, including the population of ethiopia, gdp, facts, trade, business, inflation and other data and analysis on its economy from the. Private sector development in ethiopia with particular emphasis to the manufacturing sector. Selection of key themes for ethiopia developmental state via 5 year plans rapid industrialisation strategy key role of logistics infrastructure in growth building tourism around ethiopian airlines fragile state political unrest emergency rule o. Although the blue nile is much shorter than the white nile, it contributes about 80% of the flow of the river. Ethiopias economic miracle is running out of steam.
Even more, it provides a guide to the political economy of policy and policy. Ethiopia economy gdp, budget, industry and agriculture. Global finance magazine ethiopia gdp and economic data. Ethiopia is bursting with a feeling of unprecedented economic optimism owing to its high economic growth in the last twenty years and the ethiopian people wherever they are in the world are upbeat about their countrys future. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. Modeling impacts on the ethiopian economy with a computable general. After the revolution, the countrys economy can be viewed as having gone through four phases see table 10, appendix internal political upheaval, armed conflict, and radical institutional reform marked the 197478 period of the revolution. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. Economy economy economy during the period of pasdep ethiopia became one of the fastestgrowing nonoil economies in africa averaging 1011% growth rates, and the economy has continued to increase at this rate. Second, it is necessary to evaluate alternative government policy interventions to facilitate reasonable selections in the context of a medium to longterm development strategy and poverty reduction program. Country report 2017 includes ethiopia real gross domestic product growth rate, with latest forecasts and historical data, gdp per capita, gdp composition and breakdown by sector. Postrevolution period the l974 revolution resulted in the nationalization and restructuring of the ethiopian economy. Both, in turn, need to be grounded on a good understanding of the current structure of the ethiopian economy.
Recent economic developments the ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. Ethiopias economy growth rate is 5 or 6% not 10 or 11%. Pdf this paper analyses the economic impacts of climate change on ethiopias. The world bank team welcomes feedback on the ethiopia economic update. The economy of ethiopia is a mixed and transition economy with a large public sector. Dec 07, 2019 ethiopia the second most populous country in africa is a oneparty state with a planned economy. Now ethiopia is determined raising the present 2178 mws of electricity to 10, 000 mws from geothermal, biogas, hydropower, solar and wind energy. After a decade of continuous expansion during which real gdp growth averaged 10. During the period of pasdep ethiopia became one of the fastestgrowing nonoil economies in africa averaging 1011% growth rates, and the economy has continued to increase at this rate. The central statistical agency is mandated to collect socioeconomic data as. Industry, mainly construction, and services accounted for most of the growth. The economy will enter a recession in 2020 and investment inflows will decline, owing to the coronavirus pandemic and locust infestation. Socioeconomic context and role of agriculture the federal democratic republic of ethiopia is a landlocked country in the horn of africa and is one of the most biologically and culturally diverse countries on the continent.
Economic commission for africa, or any other body, official, or office affiliated with or subsidiary to the united nations. The share of industry in gdp includes that of manufacturing. Apr 16, 2015 encouraged by its accomplishments, the governing ethiopian peoples revolutionary democratic front eprdf continues to focus on a highgrowth strategy aimed at making ethiopia a middleincome. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Ethiopia transform its economy and society toward middle income status, and by coordinating. In cooperation with oromia national regional state of ethiopia. Search 2018 ethiopian economic association contact us. Productive capacity and economic growth in ethiopia.
Transport sector development in ethiopia performance, policies and its role in the economy. Legislative elections are expected to be delayed and will probably take place in early 2021. The ethiopian economy is currently the fastest growing economy in africa and the third fastest growing economy in the world. Overall, this is a book that must be read before anyone can claim to have an understanding of the ethiopian economy. The ethiopian national strategy for the development paris21. Ethiopias real gross domestic product gdp growth decelerated to 7. However, it is still one of the poorest countries in the world. Pdf explaining the offfarm economy in rural ethiopia. Ethiopia country development cooperation strategy 2011. Ethiopia economy, politics and gdp growth summary the.
Small and micro enterprises smes development in ethiopia. The demographic profile of african countries united nations. Encouraged by its accomplishments, the governing ethiopian peoples revolutionary democratic front eprdf continues to focus on a highgrowth strategy aimed at making ethiopia a middleincome. Annual economic report ethiopian economic association. Understanding the historical background of the insurance. Growth was driven mainly by the services sector from the supply side and public investment from the demand side. Considering 2015 is the year the first growth and transformation plan gtpthe. In 20 2014, it registered a significant growth rate of 10. Coming to ethiopia s internal economic environment, the 2014 annual report of the national bank of ethiopia confirmed the continued overall growth of the ethiopian economy. The major agricultural export crop is coffee, providing 65%75% of ethiopias foreign exchange earnings. While the drought slowed down growth in 2015 16 the economy still expanded by 8 percent, which is a sign of increased economic resilience. Ethiopias debt sustainability rating deteriorated to high risk in 2018 because of worsening terms of trade and the subsequent weak export performance. Economy economy the sugar development sector is another priority area of the gtp so as to meet the increasing demand for sugar in the local and international markets.
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