Changes in rainfall associated with worldwide weather patterns resulted in the worst drought in 30 years in 201516, creating food insecurity for millions of ethiopians. Industry, mainly construction, and services accounted for most of the growth. Annual economic report ethiopian economic association. Based on information available at the time of these discussions, the staff report was completed on september 2, 2015. 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. Hydroelectric power production is anticipated to increase to over 10,000 mws by 2015. Through june 2015, reserve money was growing more slowly than nominal gdp, which helped contain inflation to single digits. In 200405 and 201011 the nation economy achieved 12. Dec 20, 2019 graph and download economic data for gross national income for ethiopia mktgnieta646nwdb from 1981 to 2018 about ethiopia and gni. Ethiopian, which placed first in the 2015 apex passenger choice awards best airline in africa category, is an outlier among africas stateowned carriers. Ethiopia economy, politics and gdp growth summary the. Almost the entirety of ethiopian coffee comes from small farms which use areas that are less than 2 hectares. There has also been tremendous growth in the number, diversity and market share of private businesses in the ethiopian economy.
High inflation has, however, contributed to overvaluation of the ethiopian birr despite the 15% devaluation in 2017, necessitating a. Growth was driven mainly by the services sector from the supply side and public investment from the demand side. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. Economic growth remained at a respectable 8% in 2015. The agriculture sector in ethiopia economies africaines. Now ethiopia is determined raising the present 2178 mws of electricity to 10, 000 mws from geothermal, biogas, hydropower, solar and wind energy. Pdf the contribution of livestock to the ethiopian economy. In this regard, the country had shown notable progress in expanding two existing sugar factories for the last three years of the gtp. Apr 25, 2017 ethiopia has a mixed market economy, which means businesses are owned by both the public and private sectors. This growth was driven by government investment in infrastructure, as well as sustained. Ethiopias economic miracle is running out of steam. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. 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.
Annual report on the ethiopian economy ethiopian economic. Productive capacity and economic growth in ethiopia. However, basic challenges such as unskilled labor, high transport costs. Based on information available at the time of these discussions, the. Ethiopias economy growth rate is 5 or 6% not 10 or 11%. Ethiopias economy is primarily based on agriculture but over the last 5 years the gov. Please note that in this document, the term ethiopia is used in its simple form to refer to the federal. Ethiopia economic outlook african development bank. The ethiopian economy is currently the fastest growing economy in africa and the third fastest growing economy in the world. Its overall score is unchanged, with an improvement in judicial effectiveness offset by a. United nations university world institute for development economics research wider.
The economy will enter a recession in 2020 and investment inflows will decline, owing to the coronavirus pandemic and locust infestation. The contribution of livestock to the ethiopian economy. Ethiopias real gross domestic product gdp growth decelerated to 7. 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. However, it is still one of the poorest countries in the world. Ethiopias nominal gdp surpassed kenya in 2015, making the former the largest economy. The contribution of livestock to the ethiopian economy part ii article pdf available january 2011 with 10,220 reads how we measure reads. Dec 07, 2019 ethiopia the second most populous country in africa is a oneparty state with a planned economy. In this regard, the report provides an assessment of how inclusive green economyrelated.
Search 2018 ethiopian economic association contact us. 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. Global finance magazine ethiopia gdp and economic data. The ethiopian government has developed comprehensive agricultural and economic development plans that have contributed to the countrys substantial growth in agriculture, industry and services. By 2016, production had reached almost 400 000 tonnes and according to gtp ii, it could reach 1 million tonnes by 2019. Unlike other governmentrun airlines, its rising fast. Considering 2015 is the year the first growth and transformation plan gtpthe. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Ongoing infrastructure projects include power production and distribution, roads, rails, airports and industrial parks.
Ethiopias economy experienced strong, broadbased growth averaging 9. Economic indicators for ethiopia including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for ethiopia economy. This statistic shows the share of economic sectors in the gross domestic product gdp in ethiopia from 2008 to 2018. Overall, this is a book that must be read before anyone can claim to have an understanding of the ethiopian economy. 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. Changes in rainfall associated with worldwide weather patterns resulted in the worst drought in 30 years in 2015 16, creating food insecurity for millions of ethiopians. The main objective of this report is to explore the linkages and contribution of inclusive green economy policies and strategies to structural transformation in ethiopia. Invest in ethiopia structural reforms set to unlock east.
World bank lauds ethiopias economic growth in a report. However, in recent months in 2015, domestic food prices are increasing partially. Its economy has experienced between 8% and 11% growth over the last 10 years, although for 2014 and 2015 that rate dropped to 5. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. Manager, gpvdr and sajjad shah country program fantu bachewe, guush berhane, bart minten, and alemayehu taffesse 2015. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted.
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. Resources were allocated among the various sectors of the economy differently in the imperial and revolutionary periods. Ethiopia economy revenue and expenditures resources were allocated among the various sectors of the economy differently in the imperial and revolutionary periods. Though ethiopias economy has been growing at an average rate of 7% in recent years1, the country remains one of the worlds poorest. Gni formerly gnp is the sum of value added by all resident producers plus any product taxes less subsidies not included in the valuation of output plus net receipts of primary income compensation of employees and property income from abroad. The economy of ethiopia is a mixed and transition economy with a large public sector. Economic growth, development and poverty in ethiopia. Ethiopias currently has the fastest growing economy in africa. Access the latest politics analysis and economic growth summary through 2011 for ethiopia from the economist intelligence unit. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. Performance and prospects of tax collection in ethiopia undp.
Secondly the depth and persistence of the poverty affect the impact of growth on poverty. Ethiopias experience is a case in point for the complex interaction between inequality and growth. A ccording to the world bank, the ethiopian economy saw strong growth between the years 200304 and 2014. Ethiopias economic miracle is running out of steam why its time for east africas big success story to change the way it does business. Browse additional economic indicators and data sets, selected by global finance editors, to learn more about ethiopia. In 2018, the share of agriculture in ethiopias gross domestic product was 31. Economic indicators for ethiopia including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and. Under the emperor, the government dedicated about 36 percent of the annual budget to national defense and maintenance of internal order. Transport sector development in ethiopia performance, policies and its role in the economy. Gross national income for ethiopia mktgnieta646nwdb. 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.
Ethiopia has a large and fast growing domestic and regional market offering prospects for a wide range of consumer goods. Ethiopia economy gdp, inflation, cpi and interest rate. Even more, it provides a guide to the political economy of policy and policy. Ethiopia has a mixed market economy, which means businesses are owned by both the public and private sectors. However, there is a challenge increasing the tax revenue proportionate gdp. Legislative elections are expected to be delayed and will probably take place in early 2021. While the economy remains predominately agricultural, the current growth and transformation plan will. Gilgel gibe ii 420 mw and takezze 300 mw and tana beles 460 mw have started generating power. Growth was driven mainly by the services sector from the. Private sector development in ethiopia with particular emphasis to the manufacturing sector. May 22, 2015 ethiopias economy is expected to grow by 9.
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