The staff report prepared by a staff team of the imf for the executive boards consideration on september 21, 2015, following discussions that ended on june 17, 2015, with the officials of the federal democratic republic of ethiopia on economic developments and policies. This is slightly faster growth than on average over the past 6. This news is a boon to the aviation industry in particular, given ethiopian airlines status as africas largest and fastestgrowing airline. Coffee production is vital to the ethiopian economy with about 15 million people directly or indirectly deriving their livelihoods from it. Review of honey bee and honey production in ethiopia article pdf available in journal of animal science 510. Additional information can be found on the ethiopia and imf country page, including official imf reports and executive board documents in english that deal with ethiopia. Poverty defined as the number of people unable to attain the minimum living standard 3. Oec ethiopia eth exports, imports, and trade partners. Economic growth and poverty in ethiopia economic growth refers to an increase in the national income or per capita income 2. The country has also continued to post strong and inclusive economic growth.
Christians account for 63% of the countrys population, with 44% belonging to the ethiopian orthodox church. The ethiopian development research institute working papers about edri founded in august 1999 as a semiautonomous government development research institute, edris primary mission is to conduct quality research on the development of the ethiopian economy and disseminate the results to key stakeholders within and outside of ethiopia. Overall, this is a book that must be read before anyone can claim to have an understanding of the ethiopian economy. Why is the world bank bothering the government of ethiopia on devaluation. Why is the world bank bothering the government of ethiopia. Gross domestic product gdp denotes the aggregate value of all services and goods. Bordering eritrea, somalia, kenya, south sudan, and sudan, ethiopia is landlocked, and has been using neighboring djiboutis. Review of the role of honey subsector in ethiopian economy amare y. The second theory argues that an increase in the national income cause more public spending mwafaq m.
Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Shares of services in total exports, 2005 and 2015 ethiopias. Degu y, kebebew z, hodel e, amdihun a, mekuriaw a, debele b, deichert g, hurni h. Ethiopia religion, economy and politics ethiopia has close ties with all three major abrahamic religions, and it was the first in the region to officially adopt christianity in the 4th century. Ethiopias economic miracle is running out of steam foreign. Competition for a 30 to 40 percent stake in staterun ethio telecom is also heating up. By lawrence freeman, politicaleconomic analysist for africa june 24, 2016 it is common these days, when western nations are discussing the government of ethiopia, to hear a raft of attacks on that nation for human rights violations. Ethiopia economy gdp, inflation, cpi and interest rate. Oct 28, 2019 the statistic shows gross domestic product gdp in ethiopia from 1984 to 2018, with projections up until 2024. It appears quite puzzling that international financial institutions ifis such as the world bank that are supposed to help the development of african countries such as ethiopia offers them unreasonable advise or shall i say order when these. This is slightly faster growth than on average over the past 6 months mainly due to an increase in food inflation.
It is mainly produced in the southwestern and southeastern parts of the country. Its economy has experienced between 8% and 11% growth over the last 10 years, although for 2014 and 2015 that rate dropped to 5. College of agriculture and environmental sciences, school of agricultural economics and agro business. Ethiopia population 2020 demographics, maps, graphs. The federal democratic republic of ethiopia international. Not surprisingly, private consumption is the by far the largest component of the demand side of the ethiopian economy table 4. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10.
Imf executive board concludes 2015 article iv consultation with ethiopia. Ethiopias top 10 exports are highly concentrated, representing 88. Can ethiopias economic growth model become a template for. Growth was driven mainly by the services sector from the supply side and public investment from the demand side. Desalegn, as the ethiopian peoples revolutionary democratic front was given another popular mandate in the may 2015 national elections. Eighteenth international water technology conference, iwtc18 sharm elsheikh, 1214 march 2015 336 hydrological and environmental impacts of grand ethiopian renaissance dam on the nile river abdelkader t. After years of management under command economy, protracted civil war and recurring drought, the. Livestock plan to boost economy and lift millions out of. 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. Ratio, annual, not seasonally adjusted 1971 to 2015 mar 20 central bank assets to gdp for ethiopia. Command an economy in which investment, prices, and incomes are determined by central government. Review of the role of honey subsector in ethiopian economy. The statistic shows gross domestic product gdp in ethiopia from 1984 to 2018, with projections up until 2024. This page provides ethiopia exports actual values, historical data, forecast, chart, statistics, economic calendar and news.
Especially after world war ii, tourism, banking, insurance, and transport began to. The community questionnaire was administered to a group of community members to collect information on the socio economic indicators of the enumeration areas where the sample. The ethiopian livestock is also significant with over 50 million cattle, 50 million poultry, 20 million sheep and 20 million goats in 2015 csa, 2015. However, in recent months in 2015, domestic food prices are increasing. The ethiopian economy grew by 8 in 201516 due to the recent drought affecting agricultural production with spillovers on the trade sector. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. In late july 2015, the ministry of agriculture and the international livestock research institute jointly released a brief summary ethiopias fiveyear livestock master plan lmp which covers the period of 2015 2020. College of agriculture and environmental sciences, department of animal sciences, adigrat university, adigrat, ethiopia 2. With about 109 million people 2018, ethiopia is the second most populous nation in africa after nigeria, and the fastest growing economy in the region. Ethiopia the human capital index hci database provides data at the country level for each of the components of the human capital index as well as for the overall index, disaggregated by gender. In addition, over the past year the economy has faced a sharp appreciation of.
Economics of land degradation eld ethiopia case study. While the drought slowed down growth in 2015 16 the economy still expanded by 8 percent, which is a sign of increased economic resilience. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and poor. Global finance magazine ethiopia gdp and economic data. The ethiopian economy and financial policy has evolved through three major phases. Annual economic report ethiopian economic association. Can ethiopias economic growth model become a template for africa despite the world banks objection. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. Dec 14, 2018 a guide to the services provided by bees and the sustainable harvesting, processing and marketing of their products.
Ethiopia continues its economic ascent world finance. Small and micro enterprises smes development in ethiopia. In 2004, ethiopian gdp gross domestic product was about 63% of kenyan gdp and 4. Industry, mainly construction, and services accounted for most of the growth. Ethiopia gross domestic product gdp 19842024 statista. Given its size, swelling population, and the depths of its poverty, the countrys gains have. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. Inflation has remained in single digits for the last two years. Coffee production in ethiopia is a longstanding tradition which dates back to dozens of centuries. While the drought slowed down growth in 201516 the economy still expanded by 8 percent, which is a sign of increased economic resilience. Ethiopia aims to reach lowermiddleincome status by 2025. Federal democratic republic of ethiopia, addis ababa. Economic activity gained strength in the 20182019 fiscal year, which ended in july 2019, spurred by a strong services sector and soaring industrial production.
Economic policy and structural transformation in ethiopia oxford. United nations university world institute for development economics research wider. The major thrust of the report is a critical assessment of sustainable development efforts and achievements during the past two decades and provides a brief account of ethiopias planned. On the other hand, the theory of wagner inclined towards the opposite view.
The ethiopian economy energy intensity the ratio of the quantity of energy consumption per unit of economic output was 17. Ethiopias macroeconomic outturn during the past year 201516 has been adversely. But a new ethiopia is emerging from troubled times and the latest international monetary fund imf forecast says ethiopia will be the fastestgrowing economy in subsaharan africa in 2018. Ahmed 1and mohamed helmy elsanabary 2 1 civil engineering department, faculty of engineering, aswan university, egypt. Under haile selassie i reigned 193074, ethiopia s economy enjoyed a modicum of free enterprise. Just as ethiopian farming is at the mercy of the rainfall so the ethiopian export economy is at the mercy of the international market price of coffee.
With about 105 million people 2017, ethiopia is the second most populous nation in africa after nigeria, and the fastest growing economy in the region. Economic highlights o ethiopia s fy2012 gdp growth was 9. Productive capacity and economic growth in ethiopia. It is one of the countries with the highest gdp growth rates in the world. Ethiopia s growth miracle, coupled with its large population and significant land mass, has attracted. Introduction since 1992 the government of ethiopia has introduced a variety of reforms aimed at improving. Even more, it provides a guide to the political economy of policy and policy. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Ethiopia grain and feed annual grain and feed annual. 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. Ethiopias currently has the fastest growing economy in africa. Seizing the occasion i would like to warn about the consequences of exponential population growth in ethiopia.
The structure of the ethiopian economy a sambased characterisation1 alemayehu seyoum taffesse and tadele ferede2 may 2004 i. In may 2015, the headline inflation continued its upwards trend, albeit on relatively low levels, and reached 9. Ethiopia is one of the fastestgrowing economies in the world. The largest development is that of the grand ethiopian renaissance dam on the abay river, the blue nile, which is going to generate 6, 000 mw and expected to generate a significant amount of foreign currency when completed in 2017, and will create a reservoir double the volume of lake tana. Statistics manual gfsm standards is an urgent task. Ethiopia also grows a substantial amount 100 thousand tons per year in the 1970s of cotton and processes it into fabric for clothing. Productive capacity and economic growth in ethiopia the united. Access the latest politics analysis and economic growth summary through 2011 for ethiopia from the economist intelligence unit ethiopia economy, politics and gdp growth summary the economist intelligence unit. Ethiopia has a mixed market economy, which means businesses are owned by both the public and private sectors. Prospects and challenges of structural transformation in ethiopia. It amounted to 63 % of gross domestic expenditure gde, or equivalent to 70 % of gdp. Green economy strategy that shaped the content of this report.
From subsaharan africa, ethiopia is compared with rwanda and uganda, which have hdis ranked 157 and 159 respectively see table b. During this period a structural change is observed as agriculture declined in its share and. The ethiopian economy grew by 8 in 2015 16 due to the recent drought affecting agricultural production with spillovers on the trade sector. Through extensive infrastructure construction and largescale agricultural production, the government of ethiopia seeks to reach middleincome status by 2015. Article iv consultation with the federal democratic republic of ethiopia. Ethiopia s gdp is increasing steadily and is expected to surpass the 100 billion mark. The plant is now grown in various parts of the world. Objective this technical assistance intervention aims at supporting the ethiopian ministry of foreign affairs. Government spending for economic growth in ethiopia. Now ethiopia is determined raising the present 2178 mws of electricity to 10, 000 mws from geothermal, biogas, hydropower, solar and wind energy. Oct 09, 2018 since coming to power, he has made moves to modernise the economy and loosen the monopoly of key sectors. Ethiopias economy is booming, and despite the countrys current political turmoil, the. Contribution of livestock sector in ethiopian economy. According to official data, the ethiopian economy has grown at 10.
The ethiopian economy continued its strong expansion in fy14 with. Remittances ethiopia east and horn of africa development of a. This web page provides information on the activities of the office, views of the imf staff, and the relations between ethiopia and the imf. Ethiopia is the 129th largest export economy in the world and the 116th most complex economy according to the economic complexity index eci. Ethiopias real gross domestic product gdp growth decelerated to 7. Wages and employment in a crowded labor market pdf report. The economy of ethiopia is a mixed and transition economy with a large public sector. Index, annual, not seasonally adjusted 1998 to 20 oct 21 loans from nonresident banks, amounts outstanding, to gdp for ethiopia. Ethiopia s economic system include coffee, livestock products leather, live animals, and meat, fruits, vegetables, flowers, etc. The compound annual growth rate cagr between 2010 and 2012 was 4. Machinery including computers was the fastestgrowing among the top 10 export categories, up by 29,091% since 2017. Ethiopia economy, politics and gdp growth summary the. The annual real gross domestic product gdp growth rate has averaged 10. Ethiopia s location gives it strategic dominance as a jumping off point in the horn of africa, close to the middle east and its markets.
Considering 2015 is the year the first growth and transformation plan. Report for the economics of land degradation initiative. The political economy of growth in ethiopia chapter 4 of volume 2 alemayehu geda1 we are pleased to tell you that we have finally submitted the growth project manuscripts to cambridge university press. Behind livestock, grain production is the second most important sector in the countrys agriculturebased economy. Cardiff school of geography and planning microfinance and. The full text of the lmp was recently published online. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Early this year masimba tafirenyika travelled to ethiopia to see how much has changed since the infamous famine of the mid1980s. Grand ethiopian renaissance dam gerd an interactive qualifying project report submitted to the faculty of worcester polytechnic institute in partial fulfillment of the requirements for the degree of bachelor of civil engineering by. Productive capacity and economic growth in ethiopia 1 introduction ethiopia is one of the largest least developed countries ldcs in subsaharan africa, with a popula. 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. Ethiopias economy experienced strong, broadbased growth averaging 9. Economic growth, development and poverty in ethiopia.
Ethiopia of agriculture in gdp remaining at about 42 per cent. The gross domestic product gdp in ethiopia was worth 94 billion us dollars in 2019, according to official data from the world bank and projections from trading economics. It however benefits from a liberalized economy since the 1990s. The growth opportunities and challenges of the ethiopian economy are also. Hydroelectric power production is anticipated to increase to over 10,000 mws by 2015. Ethiopia is where coffea arabica, the coffee plant, originates. This is the second part of a series on a country in transition. The impact of foreign aid on economic growth of ethiopia. And yet, change in the structure of the ethiopian economy has been relatively slow.