Global InformationEconomy of Ethiopia information
 Addis Ababa, the financial centre of Ethiopia | |
| Currency | Birr (ETB, ብር) |
|---|---|
Fiscal year | 7 – 8 July |
Trade organisations | AU, AfCFTA, COMESA, IGAD, WTO (observer), G24 |
Country group | Brics
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| Statistics | |
| GDP |
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| GDP rank |
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GDP growth |
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GDP per capita |
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GDP per capita rank |
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GDP by sector |
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Inflation (CPI) |  34.8% (2022 est.)[6] |
Population below poverty line |
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Gini coefficient |
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Human Development Index |
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Labour force |
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Labour force by occupation |
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| Unemployment |  4% (2022)[16] |
Main industries | food processing, beverages, textiles, leather, chemicals, metals processing, cement |
| External | |
| Exports |  $10.45 billion (2022 est.)[17] |
Export goods | coffee, qat, gold, leather products, live animals, oilseeds |
Main export partners |
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| Imports | $23.23 billion (2022 est.)[19] |
Import goods | Machinery and aircraft, metal and metal products, electrical materials, petroleum products, motor vehicles, chemicals and fertilizers |
Main import partners |
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FDI stock | $31.6 billion (2022 est.)
Inflows: $2.43 billion (2021-22 est.) |
Current account | −$15.2 billion (2.77% of GDP, 2022 est.) |
Gross external debt | $52.21 billion (2022 est.)[21] |
| Public finances | |
Government debt | 43.93% of GDP (2022 est.)[3] |
| Revenues | $26.18billion (2022.est) |
| Expenses | $26.8 billion (2022 est.) |
| Economic aid | $308 million (recipient) (2001[update]) |
Credit rating | Standard & Poor's:[22] B (Foreign currency ratings) B (Local currency ratings) B (T&C assessment), Moody's:[23] B1 (Outlook stable) Fitch:[24] B (Outlook stable) |
Foreign reserves |  $2.4 billion (FY 2022est.)[15] |
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars. | |
The economy of Ethiopia is a mixed and transition economy with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy.[25] The banking, telecommunication and transportation sectors of the economy are dominated by government-owned companies.[26][27]
Ethiopia has one of the fastest-growing economies in the world and is Africa's second most populous country.[28] Many properties owned by the government during the previous regime have now been privatized or are in the process of privatization and the liberalization of its financial sector in the near future.[29] However, certain sectors such as telecommunications, financial and insurance services, air and land transportation services, and retail, are considered as strategic sectors and are expected to remain under state control for the foreseeable future. Almost 50% of Ethiopia's population is under the age of 18. Even though education enrolment at primary and tertiary level has increased significantly, job creation has not caught up with the increased output from educational institutes. The country must create hundreds of thousands of jobs every year just to keep up with population growth.[30]
In 2023 Ethiopia has reached an estimated GDP scale of 156.1 billion dollars nominal, for PPP the country's economy has reached an estimated 393.85 billion dollars. This mostly comes from a services-based economy with agriculture. In the latest data from 2019 Ethiopia's top trading partners globally included, China, the United States, UAE, France, the United Kingdom, South Korea, Saudi Arabia, Germany, Japan, Switzerland, the Netherlands, Belgium, Turkey, India, and Egypt.[31][32] In 2021, agriculture made up 37.5% of the country's economic output, while services 36.25% and industry made up 21.85% of the economy.[33] Ethiopia's economy is ranked 159th place out of 190 countries counted, in 'Ease of doing business'.[34] Ethiopia is also a-part of African Continental Free Trade Area, Common Market for Eastern and Southern Africa, Intergovernmental Authority on Development, the G24, and the World Trade organization as an observer, and is soon to join the BRICS economic alliance, with China, India, Russia, Brazil, South Africa and the new coming members: in January 2024.[35]
While Ethiopia does not currently have a stock exchange, it did have one in the past during the reign of Emperor Haile Selassie I, called an 'ākisīyoni gebeya.' It now has a commodity exchange in Addis Ababa called the Ethiopia Commodity Exchange, which was recently established in 2008.[36]
The Ethiopian economy has a large foreign debt, with an overall external debt of 28 billion dollars. China owns over 13 billion dollars of its debt. Its debt to GDP ratio is smaller compared to similar and neighboring countries. Ethiopia currently has 2.4 billion dollars of foreign reserves, representing a decline compared to previous years.[37]
Ethiopia expects itself to reach a middle-income status nation within a couple years, primarily expected to be in 2025.[38]
- ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
- ^ a b c d e "World Economic Outlook Database, April 2024". IMF.org. International Monetary Fund. Retrieved 16 April 2024.
- ^ "Report for Selected Countries and Subjects". IMF. Retrieved 1 January 2024.
- ^ "Ethiopia: Share of economic sectors in the gross domestic product (GDP) from 2010 to 2020". Retrieved 15 February 2022.
- ^ "Ethiopia's Inflation Rate Drops For First Time in Four Months". bnnbloomberg.ca. Bloomberg. Retrieved 11 July 2022.
- ^ "Poverty headcount ratio at national poverty lines (% of population)". data.worldbank.org. World Bank. Retrieved 11 February 2019.
- ^ "Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) - Ethiopia". data.worldbank.org. World Bank. Retrieved 5 December 2019.
- ^ "GINI index (World Bank estimate)". data.worldbank.org. World Bank. Retrieved 29 September 2020.
- ^ Selima., Jāhāna (2015). Work for human development (PDF). Human Development Report. United Nations Development Programme. ISBN 9789211263985. OCLC 936070939.
- ^ "UN Pledges Support to Improve Ethiopia's Human Development". www.ena.net. Retrieved 13 September 2022.
- ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
- ^ "Labor force, total - Ethiopia". data.worldbank.org. World Bank. Retrieved 29 July 2023.
- ^ "Employment to population ratio, 15+, total (%) (modeled ILO estimate)". data.worldbank.org. World Bank. Retrieved 29 July 2023.
- ^ a b "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 11 February 2019.
- ^ "Unemployment, total (% of total labor force) (modeled ILO estimate)". data.worldbank.org. World Bank. Retrieved 29 July 2023.
- ^ "Exports of goods and services(current US$)-Ethiopia". data.worldbank.org. World Bank.
- ^ "Export Partners of Ethiopia". The Observatory of Economic Complexity. Retrieved 21 June 2021.
- ^ "Imports of goods and services(current US$)-Ethiopia". data.worldbank.org. World Bank.
- ^ "Import Partners of Ethiopia". The Observatory of Economic Complexity. Retrieved 21 June 2021.
- ^ "Ethiopia: National debt from 2017 to 2027". statista.com. Retrieved 2 December 2022.
- ^ "S&P Global Market Intelligence". www.capitaliq.com. Retrieved 16 April 2018.[permanent dead link]
- ^ "Moody's: Ethiopia's credit profile balances high growth and low debt costs against range of challenges". moodys.com. 1 August 2017. Retrieved 16 April 2018.
- ^ "Press Release". www.fitchratings.com. Retrieved 16 April 2018.
- ^ Sanchez, Dana (10 January 2017). "Ethiopia Moves Toward Privatization. It's Not about Money. It's About Tech". AFKInsider. Archived from the original on 12 January 2017. Retrieved 12 January 2017.
- ^ Maasho, Aaron (21 March 2015). "Ethiopia launches 4G mobile service in the capital". Reuters. Archived from the original on 12 January 2017. Retrieved 11 January 2017.
- ^ Maasho, Aaron (29 March 2015). "Ethiopia sells off seven state firms, to offer more". Reuters. Archived from the original on 12 January 2017. Retrieved 11 January 2017.
- ^ "Private Sector Boosts Ethiopia's Growth". IFC. Retrieved 27 December 2012.
- ^ "Ethiopia sells off seven state firms, to offer more". Reuters. 19 March 2012. Retrieved 27 December 2012.
- ^ "A brittle Western ally in the Horn of Africa". The Economist. 1 November 2007. ISSN 0013-0613. Archived from the original on 11 January 2017. Retrieved 11 January 2017.
- ^ "International Monetary Fund". IMF.org.
- ^ "Import partners of Ethiopia". The Observatory of Economic Complexity.
- ^ "Ethiopia: Share of economic sectors in the gross domestic product (GDP) from 2011 to 2021". Statista.
- ^ "Ease of doing business score in Ethiopia from 2015 to 2020". Statista.
- ^ "How Egypt and Ethiopia joining Brics could help boost China's influence in Africa". South China Morning Post.
- ^ "Ethiopia's Commodity Exchange Opens its Doors". IFPRI.
- ^ "IMF Pins Ethiopia Funding Program on Debt-Restructuring Progress". Bloomberg News.
- ^ "Working paper series - Ethiopia 2030: A Country Transformed? Options for A Next Generation of Reforms". United Nations.