Ethiopia Economic Forecast

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Sadly, the economy of Ethiopia has been devastated for a long time. The people of this country rely on sectors for agriculture, fisheries, and farming, with these accounting for almost 60% of the Gross Domestic Product. In fact, these sectors supply jobs for 80% of the labor force. Because this part of the world has been dealt with extreme drought, all sectors have struggled.


Sadly, the economy of Ethiopia has been devastated for a long time. The people of this country rely on sectors for agriculture, fisheries, and farming, with these accounting for almost 60% of the Gross Domestic Product. In fact, these sectors supply jobs for 80% of the labor force. Because this part of the world has been dealt with extreme drought, all sectors have struggled.

For instance, the primary crop grown in Ethiopia is coffee but with no rain, crops have not been able to grow. The drought coupled with the Eritrea war from 1998 to 2000 has created serious challenges for the people of Ethiopia. On a positive note, because of the country’s economic position, it qualified for public debt relief in 2005 from an initiative known as the Highly In-public-debted Poor Countries, or HIPC. Along with this, the country’s public debt to the body was forgiven by the International Monetary Fund (IMF) in that same year. While 2002 brought another drought, weather has stabilized in the past few years, allowing the economy to recover from 2004 to 2008.

Ethiopia GDP Forecast

The majority of Ethiopia’s economy is controlled by the government. Interestingly, this country is the only one in Africa that has almost no privatization. However, over the past 10 years a number of serious efforts have been made by international organizations to complete reform but with too many internal conflicts, these efforts were wasted. With all the challenges this country faces, to include a high level of mortality due to AIDS, it has one of the most fertile lands on the continent. Because of this, the potential for Ethiopia to grow incredible crops is very real. The Ethiopia GDP (Gross Domestic Product, Current Prices, US Dollar) for 2008 was $26.68 billion in US dollars. By the close of 2009, the numbers had changed somewhat to $32.319 billion due to a 21.16% reduction. This change put the country at number 83 in 2009 for world rankings. When looking at numbers for 2010, experts believe this year will end up at $30.60 billion, again not much of a change. While a larger change is expected by the end of 2015, the numbers are still not expected to move much, closing at $39.876 billion in US dollars.

Ethiopia Unemployment Forecast

The most recent reports show that the Ethiopia population is close to 83 million. However, the total labor force being reported is slightly under 38%. Taking the people that would be included in estimating the Ethiopia unemployment rate, it puts the current numbers around 11%. At the close of 2009, the rate put the country at number 13 for rankings around the world. Experts suggest that by year-end 2010, the number of people living in this country will increase by approximately one million.

Ethiopia Inflation Rate Forecast

For the Ethiopia inflation rate pertaining to consumer pricing change, experts use data as averages for the year rather than for end-of-period. In 2008, the inflation rate for this country was at 25.32%. Then with an increase of 43.78%, 2009 ended at 36.399%, which put the Ethiopia for world rankings at number two. In forecasting numbers for the close for 2010, the inflation rate will be around 3.76%, an 89.67% decline. Then by 2015, experts believe the rate will change to 6%.

Ethiopia Current Account Balance Forecast

Finally, the Ethiopia current account balance was at a negative $1.49 billion in US dollars for the end of 2008. By the end of 2009, the numbers had changed only slightly to a negative $1.62 billion, placing the country at number 136 in world rankings. While a larger change is expected for the end of 2010 of 47.16% more, the numbers will not change much. Forecasters believe 2010 will put the current account balance at a negative $2.38 billion and for 2015, a negative $2.194 billion, US dollars.

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