Ethiopias real gross domestic product gdp growth decelerated to 7. 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. The staff report prepared by a staff team of the imf for the executive. Frameworks, strategies, and plans for agricultural development 3. Ethiopia has recorded annual average gdp growth of about ten percent in the last. Although data showing healthy export growth points to a good start to fiscal year 2019a2020 july 2019july 2020, the outbreak of coronavirus will be taking a heavy toll on the economy. Ethiopias managed float exchange rate foresees a 5%6% annual depreciation to adjust for inflation differentials with trading partners. Although achieving lower middleincome status by 2025 is ambitious, ethiopia is making strides in combating poverty and improving economic conditions with the poverty rate falling from 44% in 2000 to 23. Ethiopian economic liberalisation threatened by looming crisis the africa report 12. The international monetary fund imf disagreed in the same month, stating that given the global economic crisis ethiopia could expect only about 6 per cent economic growth. While generating unrealistically high economic growth figures for ethiopia, the organization was doing the exact opposite in eritrea. Moreover, poor performance and volatility in export earnings, and everincreasing demand for imports have led to a deterioration of the balance of trade deficit.
Ethiopia economy gdp, inflation, cpi and interest rate. However, the external current account deficit, estimated at 10. Ethiopias slower approach to multilateral trade negotiations may dampen foreign investment in industries that are critical for growth. Ethiopias economy and the role of the agriculture sector 2. A possible financial risk associated with growing stock of external debt at 24. Jan 19, 2018 external imbalances and inadequate reserve buffers remain key risks to ethiopias economy, warn the board of directors of the international monetary fund imf. September 21, 2015 consideration of the staff report that concluded the. General government operations, 201516202324 percent of gdp.
Overall, this is a book that must be read before anyone can claim to have an understanding of the ethiopian economy. Imf executive board concludes 2016 article iv consultation with the federal democratic republic of ethiopia on september 26, 2016, the executive board of the international monetary fund imf concluded the article iv consultation1 with ethiopia. Copies of this report are available to the public from. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. Ethiopia poverty reduction strategy paper annual progress report.
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. 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. Even more, it provides a guide to the political economy of policy and policy. Imf s new report highlights ethiopias inclusive growth. 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. Under article iv of the imfs articles of agreement, the imf holds bilateral. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Imf staff imf staff imf staff imf staff imf staff imf staff est. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10.
Economic growth remained at a respectable 8% in 2015. Small and micro enterprises smes development in ethiopia. The federal democratic republic of ethiopia international. Imf economic reports seem to have become another battlefield for ethioeritrean war. Ethiopias macroeconomic outturn during the past year 2015 16 has been adversely affected by a. A debt sustainability analysis prepared by the staffs of the imf and the.
International monetary fund imf debtsustainability analysis. Access the latest politics analysis and economic growth summary through 2011 for ethiopia from the economist intelligence unit. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise.
The staff report for the 2019 article iv consultation and requests for threeyear. Construction and services sectors account for most of the growth from the supply side. The staff report prepared by a staff team of the imf for the executive boards. January 30, 2015 consideration of the staff report that concluded the article iv. Macroeconomic measures under the homegrown reform agenda are expected to reduce imbalances and improve growth over the medium term. Imfs board met earlier this week for a country consultations on ethiopia, following a report it received from a mission that has visited the country back in midseptember 2017. Last week, imf released a highly informative report on the state of the ethiopian economy, which, according to imf, has sustained high growth spurred by bold national plans. Jun 27, 2014 but the imfs growth predictions are lower than those projected in ethiopias fiveyear growth and transformation plan gtp. Annual report on the ethiopian economy ethiopian economic. Ethiopia economy, politics and gdp growth summary the. As used in this report, the terms country and economy do not in all.
Imf world economic outlook imf 2016 reports for 2015 a growth. Ethiopias economy experienced strong, broadbased growth averaging 9. Ethiopian way by the world bank in one of the most extensive studies on ethiopias recent growth and development policies. Pdf comparative analysis for the sdprp, pasdep and gtp of. Jun 06, 20 in march 2009, for instance, zenawi bragged that he expected the ethiopian economy to grow by 12. By imf calculations, to stay within safe limits of domestic credit and external debt, ethiopia will have to scale down its growth targets to more achievable levels. Annual economic report ethiopian economic association. The economy of ethiopia is a mixed and transition economy with a large public sector. Ethiopias economic miracle is running out of steam. Still, growth in fy16 is expected to drive further poverty reduction. 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. Ethiopia is now experiencing a growth recovery after the 201516. This growth was driven by government investment in infrastructure, as well as sustained.
Table 1 2019 ethiopia recent developments november and mid. By hailemichael derese tigrai online, october 21, 20. Ethiopia economic outlook african development bank. World economic outlook international monetary fund. Ethiopias economic growth since 2015 has been pegged at 10. The ethiopian economy is estimated to have slowed down slightly to 8. Ethiopias macroeconomic outturn during the past year 201516 has. Outlook growth is expected to slow down significantly in fy20 due to the impacts of covid19. The ethiopian economy grew by 8 in 2015 16 due to the recent drought affecting agricultural production with spillovers on the trade sector. Growth was driven mainly by the services sector from the.
The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Inflation is remarkably stable and kept in single digit on account of massive food imports and redeployment of food reserves. While the drought slowed down growth in 2015 16 the economy still expanded by 8 percent, which is a sign of increased economic resilience. Imf executive board discussion of the outlook, september 2015. Oct 26, 2017 according to imf estimates, from 2000 to 2016, ethiopia was the thirdfastest growing country of 10 million or more people in the world, as measured by gdp per capita. With the 2015 annual report, we highlight the imfs work in these and other areas with a new approach that blends essays and. Industry, mainly construction, and services accounted for most of the growth. Prospects and challenges of structural transformation in ethiopia. Ethiopia gdp and economic data global finance magazine.
Strong economic growth continued in 201415, but the drought slowed down ethiopias growth to 8 percent in 2015 16. Flagship initiatives and accomplishments within ethiopian agriculture 1. Rural producers have likely benefited from high food prices. Our view of the ethiopian economy is inspired by keynesian and structuralist thinking in the tradition of the. The ethiopian economy is projected to grow by 11 percent in fy 2015 16 in contrast to 3. Tackling challenges together, imf 2015 annual report.
Imfs new report highlights ethiopias inclusive growth. Browse additional economic indicators and data sets, selected by global finance editors, to learn more about ethiopia economic outlook, debt to gdp ratio. The federal democratic republic of ethiopia 2 international monetary fund women and the economy in ethiopia1 this paper investigates the macroeconomic impact of existing gender gaps in ethiopia and discusses the authorities policies in the areas of gender equality and womens rights, with a focus on womens economic engagement. Ethiopian economy will be africas most expansive in 2017. Ethiopia development trends assessment contracted under, aid663c16000010 issafrica001 ethiopia performance monitoring and evaluation service epmes for usaidethiopia project this report was authored by zachary donnenfeld, alex porter, jakkie cilliers, jonathan d. Growth was driven mainly by the services sector from the supply side and public investment from the demand side. Ethiopias economy will show robust growth imf the africa.