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.
Ethiopia continues to be one of the fastest growing economies on the continent. Real GDP growth is estimated at 7.2% in FY 2017/18 and is projected to average around 7% p.a. over the medium term. The development of a more vibrant private sector holds major upside potential. Furthermore, the country’s fiscal deficit (3.1% of GDP) also narrowed during the previous fiscal year, while the current account deficit narrowed to 6.7% of GDP last year. Ethiopia is far from out of the woods yet regarding political stability. It remains unclear whether Mr Abiy can re-establish the authority of the central government and bring greater security. (Source: Ethiopia Quarterly Update, published May 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-3.1 |
|
Consumer Price Index (% change y-o-y, avg) |
13.9 |
|
Current Account Balance (as a % of GDP) |
-6.7 |
|
Real GDP (annual % change) |
7.2 |
|
GDP per Capita, US$ |
735.6 |
|
Import Cover (months) |
1.9 |
|
Population, million |
107.6 |
| Total External Debt (as a % of GDP) |
36.5 |