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.
The liberalisation drive, which extends to the restructuring of parastatals to introduce competition, as well as ongoing emphasis on government capex should cement Ethiopia’s inclusion amongst the fastest-growing economies on the continent. While the medium-term outlook is bright, severe short-term supply-side constraints remain, including worsening power rationing, surging food price inflation, lower project finance outlays and restructurings concerns. As the 2020 elections approach the risk of a forced devaluation has also increased amid ongoing drawdown of the foreign reserve. (Source: Ethiopia Quarterly Update, published July 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-3.0 |
|
Consumer Price Index (% change y-o-y, avg) |
13.9 |
|
Current Account Balance (as a % of GDP) |
-6.6 |
|
Real GDP (annual % change) |
7.7 |
|
GDP per Capita, US$ |
734.5 |
|
Import Cover (months) |
2.4 |
|
Population, million |
109.3 |
| Total External Debt (as a % of GDP) |
36.0 |