In-Depth Analysis
Ethiopia
Ethiopia grapples with low levels of economic development, widespread poverty, a limited export base, and susceptibility to climate-driven disruptions. An ambitious expansionary fiscal policy yielded commendable economic growth over the past decade, but government champions a rotation towards a more inclusive, market-orientated economy under a broad-based reform and privatisation drive.
Against a backdrop of severe hard currency and food shortages, power rationing, strain on the external position, and underperformance of government finances, Ethiopia will enter a difficult but necessary transition period under the guidance of the IMF. With sights set firmly on rebuilding supply chains and alleviating structural hard currency shortages, the IMF agreement presents the opportunity for broad-based policy overhaul to facilitate a rebalancing of the growth model away from government consumption, establish international competitiveness and facilitate rapid improvements in the ease of doing business. (Source: Ethiopia Country Annual Profile, published January 2020.)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-3.0 |
|
Consumer Price Index (% change y-o-y, avg) |
15.9 |
|
Current Account Balance (as a % of GDP) |
-6.2 |
|
Real GDP (annual % change) |
7.5 |
|
GDP per Capita, US$ |
790.3 |
|
Import Cover (months) |
2.1 |
|
Population, million |
112.1 |
| Total External Debt (as a % of GDP) |
35.6 |