In-Depth Analysis
Ethiopia
The East African giant is the second-most populous nation on the continent after Nigeria and, despite its commendable economic growth performance, remains one of the poorest nations on earth. Under the ambitious reform programme first revealed in 2018, Ethiopia seeks to escape the poverty trap via development towards becoming a regional energy powerhouse and manufacturing hub.
The growth environment faces challenges from multiple fronts, with the ongoing drag on household purchasing power and private investment due to the pandemic worsened by supply-chain disruptions in the Tigray region, simmering political tensions, souring relationships with multilateral stakeholders and pest infestation. Restrictions on access for aid agencies and reports of war crimes drew denunciation from human rights organisations, endangering grant support from international benefactors. On a positive note, the implementation of the reform and liberalisation agenda is gaining traction to ultimately pave the way towards a more market-oriented policy framework. (Source: Ethiopia Annual Country Profile, published January 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-3.9 |
|
Consumer Price Index (% change y-o-y, avg) |
20.4 |
|
Current Account Balance (as a % of GDP) |
-3.8 |
|
Real GDP (annual % change) |
3.3 |
|
GDP per Capita, US$ |
803.6 |
|
Import Cover (months) |
1.9 |
|
Population, million |
115.0 |
| Total External Debt (as a % of GDP) |
34.6 |