This page provides ethiopia gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. Imfs new report highlights ethiopias inclusive growth. Ethiopia global economic prospects examines trends for the world economy and how they affect developing countries. Partially as a result of this liberalization, the economy has shown a marked growth. Impact of foreign direct investment on economic growth of. Effect of inflation on economic growth of ethiopia. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. Ethiopia7 achieved above ten percent economic growth in all gtp year except the 8. Ethiopias economy experienced strong, broadbased growth averaging 9. The main objective of this paper is to test that, whether inflation is an indicator or obstacle for economic growth of ethiopia. Ethiopia economy gdp, inflation, cpi and interest rate. The ethiopian economy has experienced impressive growth performance over the last.
Attention is given to the manufacturing sector as the success of ethiopias growth and trans. In the same way oecd 2014 confirmed that, ethiopias strong economic performance continued for the tenth consecutive year, with real gdp growth estimated at 9. Growth and transformation plan ii gtp ii is ethiopias fiveyear development plan for 20152020. Ethiopia is experiencing an economic boom and the government has ambitious plans for further economic growth. Federal democratic republic of ethiopia growth and transformation. As in the preceding years, this growth continued to be broadbased, with all sectors contributing. In economics, economic growth or economic growth theory typically refers to growth of potential output, i. Economic growth without structural transformation the case of. The country has accomplished stable economic growth with less irregularity. Teff price structure, by quality, october to november 2012. The ethiopian economy has experienced impressive growth performance over the last decade with average gdp growth rate of 11 %, which is about double of the average growth for sub saharan africa. If ethiopia sustains such growth rates, this will be a further driver of significantly increased demand for resources.
Private sector development in ethiopia with particular emphasis to the manufacturing sector. The death of meles zenawi in 2012, first elected as. Ethiopia will still be among the fastest growing nonoil producing economies in. However, basic challenges such as unskilled labor, high transport costs. Economic growth has remained robust even throughout the global economic crisis. Pdf infrastructure development and economic growth in. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets.
In modern ethiopian political economic history, we can distinguish three regimes that followed unique macroeconomic policies with its impact on macroeconomic growth performance of the country. Ethiopia is a highly agrarian economy, with a long history of substantial food insecurity. Timeseries data for the period 1990 2011 were used to examine the impact of inflation on economic growth. The government aspires to an agricultureled industrialization and focuses its attention on food security, rural savings, and labor formation. There has also been tremendous growth in the number, diversity and market share of private businesses in the ethiopian economy. Since 1992, the economic growth policy of ethiopian government was guided by the idea of export led growth. Growth in ethiopia has surpassed that of every other subsaharan country over the past decade and is forecast by the international monetary fund to exceed 8 percent over the next two years. Last week, imf released a highly informative report on the state of the ethiopian economy, which, according to imf, has sustained high growth spurred by bold national plans. The paper starts with an overview of ethiopia s economic growth and the change in the domes.
Farmers have reacquired the economic freedom of price, of production, and of settlement. Alemayhu bekele and yihunie lakew ethiopian public health. Ethiopia gdp annual growth rate 19812018 data 2019. Economic growth without structural transformation the case. However, basic challenges such as unskilled labor, high. The paper starts with an overview of ethiopias economic growth and the change in the domes.
While the drought slowed down growth in 201516 the economy still expanded by 8 percent, which is a sign of increased economic resilience. Seizing the occasion i would like to warn about the consequences of exponential population growth in ethiopia. From a wartorn and famineplagued country at the beginning of the 1990s, ethiopia is today emerging as one of the fastestgrowing economies in africa. Productive capacity and economic growth in ethiopia the united. The first characteristic of economic growth during the first gtp period was sustainable6 or continued economic growth. Growth will remain high in the short term while gradually declining in the medium term. The world bank team welcomes feedback on the ethiopia economic update. The oxford handbook of the ethiopian economy fantu cheru.
Ethiopia african economic outlook african development bank. While a rising working age population will continue to support potential gdp growth, total factor productivity growth and investment are gradually expected to decline. The economic outlook is positive, and real gdp growth is projected to stabilize at 7. Our view of the ethiopian economy is inspired by keynesian and structuralist. The major objective of gptii is to serve as a springboard towards realizing the national vision of becoming a low middleincome country by 2025, through sustaining the rapid, broadbased, and inclusive economic growth, which accelerates economic transformation and the journey towards the country.
Ethiopia economic analysis of governments policies. Baseyear analysis expresses baseyear analysis expresses economic measures in baseyear pr ices to eliminate the effects. It in particular examines how fdi affects gdp growth, both directly and also conditioning on trade liberalization that ethiopia adopted in early 1990s. The staff report for the 2012 article iv consultation, prepared by a staff team of the imf, following discussions that ended on june, 2012, with the officials of the federal democratic republic of ethiopia on economic developments and policies.
Determining the effect of inflation on the economic growth of one country must be considered as a prior issue to build up a healthy economy. The effect of exportled growth strategy on the ethiopian. Public disclosure authorized manufacturing services. Since there are not many countries with such a low income per capita, reflecting the. Mckeever institute of economic policy analysis ethiopia. Economic development ethiopia issues, growth, economic. The view of exportled growth conceives growth of exports as having a favorable impact on economicgrowth. Economic growth, development and poverty in ethiopia. National report of ethiopia sustainable development.
By hailemichael derese tigrai online, october 21, 20. Copies of this report are available to the public from. Annual economic report report on the ethiopian economy. Ethiopia, a growth miracle, deloitte ethiopia investment commission. The ethiopian government has developed comprehensive agricultural and economic development plans that have contributed to the countrys substantial growth in agriculture, industry and services. The gross domestic product gdp in ethiopia expanded 9 percent in 2018 from the previous year. A woreda environment management planning manual was prepared. Government spending for economic growth in ethiopia. Bloom and canning 2001 are among the few who explore the effect of the demographic transition on economic growth. Since 1992, the government has made strides in liberalizing the economy by implementing shortterm economic stabilization and structural adjustment measures ethiopian business development network, 2012. Transport sector development in ethiopia performance, policies and its role in the economy. Introduction any country or government in the world works day and night to achieve economic development to improve the welfare of its nation. The tenth annual conference focusing on the amhara regional state social and economic development was organized by eea in collaboration with its bahir dar chapter on november 30, 2019 at homeland hotel conference hall, bahir dar. The ethiopian economy grew by 8 in 201516 due to the recent drought affecting agricultural production with spillovers on the trade.
Therefore, the objective of this paper is to analyze the compositions of public expenditure to the growth of the ethiopian economy. The ethiopian economics association eea was established as a nonprofit making, nonpolitical and nonreligious. The report assesses the changes under the previous national plan, the plan for accelerated and sustained. High annual growth since 2004 was sustained in 2011, though predicted to be at a slower rate in 2012 and. Pdf determinant of economic growth in case of ethiopia. Recent economic developments the ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. Foreign direct investment and economic growth literature. After suffer ing economic stagnation for most of the. Outlook the ethiopian economy has experienced impressive growth performance over the last decade with average gdp growth rate of 11 %, which is about double of the average growth for sub saharan africa. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. They argue that it is possible that the interaction of economic growth with population dynamics can result in a poverty trap. Ethiopias real gross domestic product gdp growth decelerated to 7. It is based on the information available at the time it was completed on september 5, 2014. Annual economic report ethiopian economic association.
Recent economic developments strong economic growth continued in 201415. Considering forward linkages versus level of development, 2011 composition of services. D july 7, 20 introduction on july 5, 20 the central statistical agency of ethiopia announced that the ethiopian population has reached 86 million people. High growth and lower oil prices will drive further reductions in poverty. This paper measures the impact of foreign direct investment fdi on economic growth in ethiopia based on annual time series data over the period 1974 to 2011. The paper starts with an overview of economic growth and the change in the domestic economic structure. Growth should benefit from the homegrown economic reform program, which seeks to address macroeconomic imbalances and unlock structural. Economic policy analysis this site presents an analysis of the ethiopian governments economic policies compared to a revised list of 34 economic policies as prepared by student serkalem tekletsadik with the mckeever institute of economic policy analysis miepain december 20. Economic growth, development and poverty in ethiopia by teshome a. This led to closer scrutiny of export growth on economic growth to achieve a sustained economic growth. Productive capacity and economic growth in ethiopia. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship. Pdf the paper performs a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of. The interaction between growth and inflation is one of the macroeconomic problems.
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