Based on the national bank of ethiopia s data, the value of gold exported amounted to etb 456 million, which represented about 14% of the total exports of the country. Based on information available at the time of these discussions, the staff report was completed on august 29, 20. The ethiopian economy grew by 8 in 201516 due to the recent drought affecting agricultural production with spillovers on the trade. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets. The growth of the economy was quite impressive with an average growth rate of about 9 percent per annum since 2000. Ethiopia used global models which may misrepresent various dimensions of the ethiopian economy. Kaushik department of economics jimma university, ethiopia abstract unemployment is one of the major bottlenecks of economic growth in ethiopia. Real gross domestic product gdp grew at an average rate of 10. Historically ethiopia has been one of the low inflation economies with average inflation rate of less than 5 %. In the context of the 20 article iv consultation with the federal. The paper performs a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in ethiopia.
Learn how the world bank group is helping countries with covid19 coronavirus. Ethiopia gdp annual growth rate 19812020 data 20212023. Key economic and social indicators government finance fiscal deficit was 68 billion in 201617, which is 3. Mckeever institute of economic policy analysis ethiopia. This will provide important information for the usages of limited public financial resources.
In the beginning of 2014, oilseeds exports have been more important. Ethiopia has experienced rapid economic growth since 2005. Ethiopia s climate resilient green economy national adaptation plan 1 ethiopia is vulnerable to the impacts of climate change and the unpredictability of climate variability. Jan 27, 2020 ethiopia the second most populous country in africa is a oneparty state with a planned economy. Green economy in the context of sustainable development and poverty eradication 42 6. Ethiopia is one of the fastestgrowing economies in subsaharan africa, with an. Ethiopia, with a population of roughly 95 million, is the second most populous country in subsaharan africa, and one of the fastest growing economies in the world. Macroeconomic challenges have, however, given rise to high and. A number of countries have pursued fiscal decentralization within a broad context of political and economic reforms to improve the performance of their public sector. The macroeconomic picture is mixed with robust economic growth and inflation in single digits coexisting with negative short.
Forestry contribution to national economy and trade in ethiopia, kenya and uganda. Other existing studies, such as by temesgen 2007, used surveys but surveybased data on climate change may face valuation problems and require knowledge by respondents. Restrictive measures to curb the spread of the coronavirus remain largely in place, with only some schools reopening in late october. Ethiopia is africas fastestgrowing economy world economic. Ethiopia global economic prospects examines trends for the world economy and how they affect developing countries. Growth was led by the services and industry sectors, whereas the hospitability, transport, and communications sectors were adversely affected by the pandemic and the associated containment measures to prevent the spread of the virus. Ethiopia economy gdp, inflation, cpi and interest rate. Economic growth, development and poverty in ethiopia. Until 20, the major agricultural export crop was coffee, providing about 26. The ethiopian economy has experienced impressive growth performance over the last decade with. Pdf unemployment and economic growth, empirical analysis. Each of these areas is explored through indicators of progress, with a traffic light score showing ethiopia s progress as compared to other recipients of african development fund adf resources. The economic contribution of copyright industries in ethiopia wipo. On july 5, 20 the central statistical agency of ethiopia announced that the ethiopian.
A woreda environment management planning manual was prepared. Organization for economic cooperation and development. With yearonyear growth of between 7% and 9%, ghana, angola, mozambique, zambia and ethiopia have played a pivotal role in helping africas economy triple in size since 2000. Ethiopia economic analysis of governments policies. This is double the sub sahara africa and triples the world average growths over this period and has led to ethiopia being rated as one of the fastest growing economies in the world. Ethiopia has registered impressive economic growth for several years, ranging between 8 percent and 12 percent. 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. The kinds of economic output that are included in gdp are broad, but what gdp excludes can also be quite significant. Unlike the case of many other fast est growing african economies. Macro economic indicators for the extractive sector 20 14 1. Ethiopia mining sector and business prospects introduction. Growth, poverty and inequality in ethiopia, 200020. Apr 04, 2021 mekonnen manyazewal mekonnen manyazewal has held several leadership positions in key ethiopian public institutions since 1992. Dec 03, 20 the ethiopian government and some external organizations claim that ethiopia has recently become one of the fastest growing economies in the world.
Ministry of finance and economic development mofed ethiopia s economy is mainly based on agriculture, which accounts for 44. Since 2006 however ethiopia has no longer been cideroends a low inflation country and in july 2008 an alltime high inflation rate of 64 % was recorded. While ethiopia has achieved some success over the past decade, sustaining the ambitious economic strategy is becoming increasingly challenging. 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. Ethiopia economy, politics and gdp growth summary the. National report of ethiopia sustainable development. Ethiopia has registered remarkable economic performance with annual growth averaging 10. The paper analyses the enigmatic high growth in ethiopia from 2004 to 2015. Aug 01, 2016 role agriculture in ethiopian economy agriculture is the mainstay of the ethiopian economy, contributing 41. While the drought slowed down growth in 201516 the economy still expanded by 8 percent, which is a sign of increased economic resilience. This page provides ethiopia gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. Federal democratic republic of ethiopia growth and transformation.
Ethiopia will still be among the fastest growing nonoil producing economies in africa. Wider working paper 2015154 ethiopiaan agrarian economy in. As such, domestic demand is set to be dented in the quarter. Growth and structure of the ethiopian economy sector share in gdp growth rates agri indu manuf serv agri indu manuf serv gdp gdppc 198084 55. Pdf the impact of external debt on economic growth in. Economic growth and poverty in ethiopia economic growth refers to an increase in the national income or per capita income 2. Ethiopia african economic outlook african development bank. Pdf this report outlines and analyses the structures and history of the ethiopian political economy. The gross domestic product gdp in ethiopia was worth 96.
The detrimental impact of such political process on macro performance has to be obvious alemayehu, 2011. The growth opportunities and challenges of the ethiopian economy are. Midway through the second quarter of fy 2020 8 july 20207 july 2021, the economic panorama remains grim. Pp 632, special issue on the ethiopian economy fiscal federalism in theory and practice abu girma moges abstract. Forestry contribution to national economy and trade in ethiopia. Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Trade balance in the forestry sector between 2000 and 20. Recent macroeconomic and financial developments ethiopia s economy grew by 6. Poverty defined as the number of people unable to attain the minimum living standard 3. Subsaharan africas economic lions are pulling the continent into an unprecedented era of wealth creation and prosperity. Under haile selassie i reigned 193074, ethiopia s economy enjoyed a modicum of free enterprise. Ethiopia s economy experienced strong, broadbased growth averaging 9.
By 20, total investment by the public sector reached 33% of gdp, as compared to 22. Industrial policy and development in ethiopia brookings institution. Ethiopian financial sector and the private sectors access to credit imf, 20. An empirical analysis for ethiopia 197475 20 14 abdulkadir h. Ethiopia s history is full of conflicts, drastic policy changes and reversals. Economic impact 2015 ethiopia, 2015 on the economic impact of tourism for ethiopia sheds some light on the laggard nature of tourism in the country. The countrys adaptive capacity is constrained by limited livelihood options for republic of ethiopia. Ethiopia economic outlook african development bank.
Institutional framework for sustainable development 48 7. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Economic policy analysis this site presents an analysis of the ethiopian governments economic policies compared to a revised list of 34 economic policies as prepared by student serkalem tekletsadik with the mckeever institute of economic policy analysis miepain december 20. He served as the vice minister for planning and economic development, and was part of the highlevel leadership team that led the design and implementation of ethiopia s series of economic reform programmes in the 1990s. Recent economic developments strong economic growth continued in 201415. Ethiopia s climate resilient green economy strategy, 2011 ethiopia s climate resilient green economy. O to examine the impact of fiscal policy on economic growth. We also provide an appendix with 10 years of macroeconomic data as well as our economic forecastscovering the real, monetary, fiscal and external sectorsfor 2019 and 2020. Economic highlights o ethiopia s fy201112 gdp growth was 8. Ethiopia economic update overcoming inflation, raising competitiveness the world bank the world bank 1818 h street, nw washington, dc 20433 public disclosure authorized. Publications on ethiopia available in pdf format include. Green economy strategy that shaped the content of this report. For this reason, igad and the ethiopian ministry of finance and economic development mofed undertook two consecutive studies on the contribution of livestock to the ethiopian economy.
Exponential population growth and carrying capacity. During the last decade, ethiopia has made strides in economic and social development. Before 1974, the macroeconomic policy was largely informed by a market oriented economic system. National bank of ethiopia 4 201718 annual report i. Find, read and cite all the research you need on researchgate. The main development agenda of the ethiopian government is poverty eradication. More than 15 million people 25% of the population derive their livelihood from the coffee sector. Productive capacity and economic growth in ethiopia. Mar 18, 2021 ethiopia aims to reach lowermiddleincome status by 2025. High levels of foreign investment and the governments reform agenda will stimulate economic growth throughout 202225. The federal democratic republic of ethiopia international. Government spending for economic growth in ethiopia. Sustainable development in ethiopia, 19922012 25 4. Economic policy and structural transformation in ethiopia.
Therefore, the objective of this paper is to analyze the compositions of public expenditure to the growth of the ethiopian economy. This makes ethiopia one of the fastest growing countries in the world. In this period, using the official data, ethiopia saw one of the best economic performances since the early 1990s see table 1. The political economy framework for the 1992 reform economic performance in ethiopia is highly correlated with the political process 7. Productive capacity and economic growth in ethiopia the united. Increased security concerns will limit foreign investment and constrain growth in the short term. 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 ethiopia s planned path of green economy development. Real gdp will recover in 2021, when the economy is expected to grow by 2. The international monetary fund imf in its october 20 report concludes that ethiopia s robust economic growth in recent years has been accompanied by significant poverty reduction and improved living standard.
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