In-Depth Analysis
Ethiopia
Ethiopia has a low level of economic development, widespread poverty, a limited export base and is susceptible to external shocks such as droughts. An ambitious expansionary fiscal policy has resulted in commendable economic growth over the last decade, but the private sector remains underdeveloped.
Growth remains strong, supported by an ambitious capital expenditure drive and a reform agenda that envisions Ethiopia’s transformation from a tightly controlled system towards a more pragmatic, market-orientated framework. The past quarter, however, presented the shadow of misaligned progress and a deepening divide, as success towards watershed telecommunications and financial sector reform was countered by worsening shortages of food staples and hard currency, underperformance on the fiscal front, and a deepening reliance on grant relief, external vulnerability, and successive multi-year inflation highs. (Source: Ethiopia Quarterly Update, published October 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-3.0 |
|
Consumer Price Index (% change y-o-y, avg) |
13.8 |
|
Current Account Balance (as a % of GDP) |
-6.6 |
|
Real GDP (annual % change) |
6.8 |
|
GDP per Capita, US$ |
734.5 |
|
Import Cover (months) |
2.4 |
|
Population, million |
109.3 |
| Total External Debt (as a % of GDP) |
36.0 |