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.
Prime Minister Abiy Ahmed continues to impress with the scope and speed of his reform programme. However, Ethiopia continues to struggle with a weak external liquidity position, with forex holdings just being able to cover two months’ worth of imports, while the exchange rate arrangement maintains an overvalued domestic currency. Real GDP growth is estimated to have reached 7.2% in FY 2017/18 (which ended on July 7). Both business and political sentiment has undoubtedly improved over the past year. This improvement in sentiment and the prospect of positive policy reforms have the potential to change the Ethiopian economic landscape.. (Source: Ethiopia Annual Country Profile, published January 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-3.6 |
|
Consumer Price Index (% change y-o-y, avg) |
13.2 |
|
Current Account Balance (as a % of GDP) |
-5.2 |
|
Real GDP (annual % change) |
7.2 |
|
GDP per Capita, US$ |
735.6 |
|
Import Cover (months) |
2.3 |
|
Population, million |
107.6 |
| Total External Debt (as a % of GDP) |
36.5 |