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The Economy of Ethiopia

Ethiopian Economy

Ethiopia's map

Economy - overview: Ethiopia's poverty-stricken economy is based on agriculture, accounting for almost half of GDP, 60% of exports, and 80% of total employment. The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Ethiopian economy with exports of some $350 million in 2006, but historically low prices have seen many farmers switching to qat to supplement income. The war with Eritrea in 1998-2000 and recurrent drought have buffeted the economy, in particular coffee production. In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and in December 2005 the IMF voted to forgive Ethiopia's debt to the body. Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; the system continues to hamper growth in the industrial sector as entrepreneurs are unable to use land as collateral for loans. Drought struck again late in 2002, leading to a 3.3% decline in GDP in 2003. Normal weather patterns helped agricultural and GDP growth recover during 2004-08.

GDP:

GDP - real growth rate: 8.5% (2008 est.) 11.1% (2007 est.) 10.9% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 45.9% industry: 12.9% services: 41.2% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 3.9% highest 10%: 25.5% (2000)

Distribution of family income - Gini index: 30 (2000)

Inflation rate (consumer prices):

Labor force: 27.27 million (1999)

Labor force - by occupation: agriculture: 80.2% industry: 6.6% services: 13.2% (2005)

Unemployment rate: NA%

Budget: revenues: $4.586 billion expenditures: $5.729 billion (2008 est.)

Industries: food processing, beverages, textiles, leather, chemicals, metals processing, cement

Industrial production growth rate: 6% (2008 est.)

Electricity - production: 3.268 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 2.941 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 7.334 bbl/day (2007 est.)

Oil - consumption: 30,450 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2005)

Oil - imports: 29,820 bbl/day (2005)

Oil - proved reserves: 428,000 bbl (1 January 2008 est.)

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 24.92 billion cu m (1 January 2008 est.)

Agriculture - products: cereals, pulses, coffee, oilseed, cotton, sugarcane, potatoes, qat, cut flowers; hides, cattle, sheep, goats; fish

Exports: $1.439 billion f.o.b. (2008 est.)

Exports - commodities: coffee, qat, gold, leather products, live animals, oilseeds

Exports - partners: Germany 8.2%, Saudi Arabia 7%, US 6.9%, Djibouti 6.6%, China 6.5%, Italy 6.5%, Japan 5.9%, Netherlands 4.8% (2007)

Imports: $6.218 billion f.o.b. (2008 est.)

Imports - commodities: food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals, textiles

Imports - partners: Saudi Arabia 17%, China 15.9%, India 7.8%, Italy 5.1% (2007)

Debt - external: $3.158 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: birr (ETB) per US dollar - 9.57 (2008 est.), 8.96 (2007), 8.69 (2006), 8.68 (2005), 8.6356 (2004) note: since 24 October 2001, exchange rates are determined on a daily basis via interbank transactions regulated by the Central Bank

Fiscal year: