Ethiopia Economy Profile 2009

Economy - overview

Ethiopia's poverty-stricken economy is based on agriculture, accounting for almost half of GDP, 60% of exports, and 80% of total employment. The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Ethiopian economy with exports of some $350 million in 2006, but historically low prices have seen many farmers switching to qat to supplement income. The war with Eritrea in 1998-2000 and recurrent drought have buffeted the economy, in particular coffee production. In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and in December 2005 the IMF forgave Ethiopia's debt. Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; the system continues to hamper growth in the industrial sector as entrepreneurs are unable to use land as collateral for loans. Drought struck again late in 2002, leading to a 3.3% decline in GDP in 2003. Normal weather patterns helped agricultural and GDP growth recover during 2004-08.

GDP (purchasing power parity)

$68.77 billion (2008 est.)
$61.63 billion (2007 est.)
$55.27 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$25.66 billion (2008 est.)

GDP - real growth rate

11.6% (2008 est.)
11.5% (2007 est.)
11.5% (2006 est.)

GDP - per capita (PPP)

$800 (2008 est.)
$800 (2007 est.)
$700 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 44.9%
industry: 12.8%
services: 42.3% (2008 est.)

Population below poverty line

38.7% (FY05/06 est.)

Labor force

37.9 million (2007)

Labor force - by occupation

agriculture: 80.2%
industry: 6.6%
services: 13.2% (2005)

Unemployment rate

NA%

Household income or consumption by percentage share

lowest 10%: 4.1%
highest 10%: 25.6% (2005)

Distribution of family income - Gini index

30 (2000)
40 (1995)

Investment (gross fixed)

25.2% of GDP (2008 est.)

Budget

revenues: $4.517 billion
expenditures: $5.34 billion (2008 est.)

Public debt

34.1% of GDP (2008 est.)
44.5% of GDP (2007 est.)

Inflation rate (consumer prices)

44.4% (2008 est.)
17.2% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
7% (31 December 2006)

Stock of money

$NA (31 December 2008)
$3.651 billion (31 December 2006)

Stock of quasi money

$NA (31 December 2008)
$3.258 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$6.694 billion (31 December 2006)

Industries

food processing, beverages, textiles, leather, chemicals, metals processing, cement

Industrial production growth rate

10.4% (2008 est.)

Electricity - production

3.268 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 1.3%
hydro: 97.6%
nuclear: 0%
other: 1.2% (2001)

Electricity - consumption

2.941 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

7 bbl/day (2007 est.)

Oil - consumption

30,450 bbl/day (2006 est.)

Oil - imports

29,820 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

428,000 bbl (1 January 2008 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

24.92 billion cu m (1 January 2008 est.)

Current Account Balance

-$2 billion (2008 est.)
-$827.9 million (2007 est.)

Agriculture - products

cereals, pulses, coffee, oilseed, cotton, sugarcane, potatoes, qat, cut flowers; hides, cattle, sheep, goats; fish

Exports

$1.55 billion (2008 est.)
$1.285 billion (2007 est.)

Exports - commodities

coffee, qat, gold, leather products, live animals, oilseeds

Exports - partners

US 10.1%, Germany 10%, Saudi Arabia 7.6%, Netherlands 7.1%, Djibouti 6.5%, Italy 5.6%, China 4.9% (2008)

Imports

$6.901 billion (2008 est.)
$5.156 billion (2007 est.)

Imports - commodities

food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals, textiles

Imports - partners

China 19.5%, Saudi Arabia 17.9%, India 7.2%, US 5%, Italy 4.4% (2008)

Reserves of foreign exchange and gold

$870.5 million (31 December 2008 est.)
$1.29 billion (31 December 2007 est.)

Debt - external

$3.161 billion (31 December 2008 est.)
$2.621 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$1.6 billion (FY05/06)

Currency (code)

ETB

Currency (code)

birr (ETB)

Exchange rates

birr (ETB) per US dollar - 9.57 (2008 est.), 8.96 (2007), 8.69 (2006), 8.68 (2005), 8.6356 (2004)
note: since 24 October 2001, exchange rates are determined on a daily basis via interbank transactions regulated by the Central Bank

Fiscal year

8 July - 7 July