Ethiopia

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Ethiopia - In Short.

Overview of Ethiopia

Unique among African countries, the ancient Ethiopian monarchy maintained its freedom from colonial rule with the exception of a short-lived Italian occupation from 1936-41. In 1974, a military junta, the Derg, deposed Emperor Haile SELASSIE (who had ruled since 1930) and established a socialist state. Torn by bloody coups, uprisings, wide-scale drought, and massive refugee problems, the regime was finally toppled in 1991 by a coalition of rebel forces, the Ethiopian People’s Revolutionary Democratic Front (EPRDF). A constitution was adopted in 1994, and Ethiopia’s first multiparty elections were held in 1995. A border war with Eritrea in the late 1990s ended with a peace treaty in December 2000. In November 2007, the Eritrea-Ethiopia Border Commission (EEBC) issued specific coordinates as virtually demarcating the border and pronounced its work finished. Alleging that the EEBC acted beyond its mandate in issuing the coordinates, Ethiopia did not accept them and maintained troops in previously contested areas pronounced by the EEBC as belonging to Eritrea. This intransigence resulted in years of heightened tension between the two countries. In August 2012, longtime leader Prime Minister MELES Zenawi died in office and was replaced by his Deputy Prime Minister HAILEMARIAM Desalegn, marking the first peaceful transition of power in decades. Following a wave of popular dissent and anti-government protest that began in 2015, HAILEMARIAM resigned in February 2018 and ABIY Ahmed Ali took office in April 2018 as Ethiopia’s first ethnic Oromo prime minister. In June 2018, ABIY announced Ethiopia would accept the border ruling of 2000, prompting rapprochement between Ethiopia and Eritrea that was marked with a peace agreement in July 2018 and a reopening of the border in September 2018. In November 2019, Ethiopia’s nearly 30-year ethnic-based ruling coalition – the EPRDF – merged into a single unity party called the Prosperity Party, however, one of the four constituent parties (the Tigray Peoples Liberation Front or TPLF) refused to join.In November 2020, a military conflict erupted between forces aligned with the Tigrayan People’s Liberation Front (TPLF) and Ethiopia’s national military, the Ethiopian National Defense Force; the conflict, which has continued throughout 2021, has exacerbated ethnic violence and has largely centered in Tigray, Amhara, and Afar regional states.
Value
Country Full Name
Ethiopia
Country Code
ETH
Region
Sub-Saharan Africa
Income Group
Low income
Currency Unit
GDP
1.08E+11
Population
114963583
Land Area
1129300.39
Net National Income Per Capita
808.2825157
GDP per Capita (PPP)
2422.812086

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Ethiopia - Economic

Economy of Ethiopia

Ethiopia – the second most populous country in Africa – is a one-party state with a planned 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 growth was driven by government investment in infrastructure, as well as sustained progress in the agricultural and service sectors. More than 70% of Ethiopia’s population is still employed in the agricultural sector, but services have surpassed agriculture as the principal source of GDP.Ethiopia has the lowest level of income-inequality in Africa and one of the lowest in the world, with a Gini coefficient comparable to that of the Scandinavian countries. Yet despite progress toward eliminating extreme poverty, Ethiopia remains one of the poorest countries in the world, due both to rapid population growth and a low starting base. Changes in rainfall associated with world-wide weather patterns resulted in the worst drought in 30 years in 2015-16, creating food insecurity for millions of Ethiopians.The state is heavily engaged in the economy. Ongoing infrastructure projects include power production and distribution, roads, rails, airports and industrial parks. Key sectors are state-owned, including telecommunications, banking and insurance, and power distribution. Under Ethiopia’s constitution, the state owns all land and provides long-term leases to tenants. Title rights in urban areas, particularly Addis Ababa, are poorly regulated, and subject to corruption.Ethiopia’s foreign exchange earnings are led by the services sector – primarily the state-run Ethiopian Airlines – followed by exports of several commodities. While coffee remains the largest foreign exchange earner, Ethiopia is diversifying exports, and commodities such as gold, sesame, khat, livestock and horticulture products are becoming increasingly important. Manufacturing represented less than 8% of total exports in 2016, but manufacturing exports should increase in future years due to a growing international presence.The banking, insurance, telecommunications, and micro-credit industries are restricted to domestic investors, but Ethiopia has attracted roughly $8.5 billion in foreign direct investment (FDI), mostly from China, Turkey, India and the EU; US FDI is $567 million. Investment has been primarily in infrastructure, construction, agriculture/horticulture, agricultural processing, textiles, leather and leather products.To support industrialization in sectors where Ethiopia has a comparative advantage, such as textiles and garments, leather goods, and processed agricultural products, Ethiopia plans to increase installed power generation capacity by 8,320 MW, up from a capacity of 2,000 MW, by building three more major dams and expanding to other sources of renewable energy. In 2017, the government devalued the birr by 15% to increase exports and alleviate a chronic foreign currency shortage in the country.

Unemployment Rate

Inflation Rate

Ethiopia - GDP Composition

GDP Composiiton & Value Added of Ethiopia

Last Updated: Jan, 2021, Updated For 2020.

Ethiopia - GDP, Value Added

Demographics of Ethiopia

highest density is found in the highlands of the north and middle areas of the country, particularly around the centrally located capital city of Addis Ababa; the far east and southeast are sparsely populated as shown in this population distribution map
Geographic Location

Eastern Africa, west of Somalia

Races

Oromo 34.9%, Amhara (Amara) 27.9%, Tigray (Tigrinya) 7.3%, Sidama 4.1%, Welaita 3%, Gurage 2.8%, Somali (Somalie) 2.7%, Hadiya 2.2%, Afar (Affar) 0.6%, other 12.6% (2016 est.)

Languages

Oromo (official working language in the State of Oromiya) 33.8%, Amharic (official national language) 29.3%, Somali (official working language of the State of Sumale) 6.2%, Tigrigna (Tigrinya) (official working language of the State of Tigray) 5.9%, Sidamo 4%, Wolaytta 2.2%, Gurage 2%, Afar (official working language of the State of Afar) 1.7%, Hadiyya 1.7%, Gamo 1.5%, Gedeo 1.3%, Opuuo 1.2%, Kafa 1.1%, other 8.1%, English (major foreign language taught in schools), Arabic (2007 est.)major-language

Religion

Ethiopian Orthodox 43.8%, Muslim 31.3%, Protestant 22.8%, Catholic 0.7%, traditional 0.6%, other 0.8% (2016 est.)

Dependency & Expectancy of Ethiopia

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Ethiopia - Social Media Briefing

Ethiopia - Social Media & Social Commerce

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Politics & Policies of Ethiopia

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ACP, AfDB, AU, COMESA, EITI (candidate country), FAO, G-24, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, IGAD, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NAM, OPCW, PCA, UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNISFA, UNMIL, UNOCI, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO (observer)

Import of Ethiopia

Export of Ethiopia

Import Destination

Export Destination