Introduction to the Ethiopia Economy
Ethiopia's agriculture based economy frequently suffers from recurring droughts and the age old practices of cultivation still followed there, are the major reasons that largely hamper the
Ethiopia Economy which is lacking far behind most economies.
The factor that all land belongs to the government and can be acquired only in the form of long-term leases is another major hazard for the
Ethiopia Economy.
Ethiopia Economy : Sectoral Overview
Agriculture comprises almost half of the GDP of
Ethiopia with services following closely with nearly 40 percent whereas industries account for around a lowly 13 percent.
The industrial sector of the
Ethiopia Economy consists mainly of industries such as food processing, beverages, textiles, leather, and chemical recording an industrial production growth rate that is close to 8 percent.
The main agricultural products are cereals, pulses, coffee, oilseed, cotton, and qat. Livestocks including cattle, sheep and goats in addition to fishes are also farmed.
Market Performance : Ethiopia Economy
The high inflation rates prevailing in the
Ethiopia Economy results in a dull market because in terms of per capita GDP
Ethiopia is ranked a low 213 in the world.
The market which is mainly based upon agriculture needs to be reinforced. Proper irrigation is the fundamental requirement as it often suffers for droughts. Special attention has to be given to the cultivation of coffee which is the foremost revenue earner for
Ethiopia.
Export and Import of the Ethiopia Economy
Coffee, qat, gold, leather products, live animals and oilseeds are mainly exported to Germany, China, Japan, Saudi Arabia and Djibouti. The total exports increased by a whopping margin (about 77 percent increase) to nearly $2 Billions from around a mere $610 Millions in the preceding fiscal.
The imports of the
Ethiopia Economy also nearly doubled from $2.7 Billions to around $4.1 Billions.
Ethiopia mainly imports foodstuffs, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals and textiles from Saudi Arabia, China, US, India and Italy.
Ethiopia Economy : Balance of Payments
The external debt of the
Ethiopia Economy is just over a whopping $6 Billions.
However the current account balance of
Ethiopia Economy drew up an even larger deficit which increased by nearly 300 percent to around $3.4 Billions from a comparatively much lesser deficit of nearly $840 Millions.
The reserves of foreign exchange and gold of the
Ethiopia Economy simultaneously reduced by nearly 10 percent to around $1.1 Billions in the financial year just ended from $1.23 Billions in the fiscal previous to it.
International Relations : Ethiopia Economy
Ethiopia was engaged in war with Eritrea in 1998-2000 regarding control over territories.
The southern portions of Somalia was invaded by
Ethiopia in January, 2007 when the
Ethiopian forces expelled the Islamic Courts located in and around Mogadishu.
Internal troubles in eastern Sudan has made it difficult for
Ethiopia to protect its boundary with Sudan.
For more information on Ethiopia Economy one may log on to indexmundi.com, mbendi.co.za .