About Ethiopia and Key Financial Statistics

About Ethiopia and Key Financial Statistics

Overview of Economy:

Ethiopia's economy is based on agriculture, but the government is pushing to diversify into manufacturing, textiles, and energy generation. Coffee is a major export crop. The agricultural sector suffers from poor cultivation practices and frequent drought, but recent joint efforts by the Government of Ethiopia and donors have strengthened Ethiopia's agricultural resilience, contributing to a reduction in the number of Ethiopians threatened with starvation. The banking, insurance, telecommunications, and micro-credit industries are restricted to domestic investors, but Ethiopia has attracted significant foreign investment in textiles, leather, commercial agriculture and manufacturing. Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; land use certificates are now being issued in some areas so that tenants have more recognizable rights to continued occupancy and hence make more concerted efforts to improve their leaseholds. While GDP growth has remained high, based on high saving and high investment, per capita income is among the lowest in the world. Ethiopia's economy continues on its state-led Growth and Transformation Plan and is scheduled to issue another development plan in 2015. Ethiopia has achieved high single-digit growth rates through government-led infrastructure expansion and commercial agriculture development. Ethiopia in late 2014 issued its first sovereign bond, generating $1 billion in revenue for a 10 year note.

Gross Domestic Product (In USD):

$145.1 billion (2014 est.)

$131.5 billion (2013 est.)

$119.7 billion (2012 est.)

Composition of Gross Domestic Product:

% Agricuture: 42.3

% Industry: 15.4

% Services: 42.2

Composition of Labor Force by Occupation:

% Agriculture: 85

% Industry: 5

% Services: 10

Per Capita Income:

$1,600 (2014 est.)

$1,500 (2013 est.)

$1,400 (2012 est.)

Exports:

$3.721 billion (2014 est.)

$3.519 billion (2013 est.)

Key Export Commodities:

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

Export Partners:

China 17.1%, Germany 7.6%, US 7.2%, Belgium 6.8%, Saudi Arabia 6.7% (2014)

Imports:

$11.57 billion (2014 est.)

$10.68 billion (2013 est.)

Key Import Commodities:

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

Import Partners:

China 19.2%, US 11.4%, Saudi Arabia 6.7%, India 5% (2014)

Inflation Rate (Consumer Price Index):

7.4% (2014 est.)

8.1% (2013 est.)

Exchange Rate to USD:

birr (ETB) per US dollar -

19.8 (2014 est.)

19.8 (2013 est.)

17.71 (2012 est.)

16.899 (2011 est.)

14.41 (2010 est.)

Unemployment Rate:

17.5% (2012 est.)

18% (2011 est.)

S&P Rating:

Standard & Poor's Ratings:

• • AAA: The best quality borrowers, reliable and stable

  • AA: Quality borrowers, a bit higher risk than AAA

  • A: Economic situation can affect finance

  • BBB: Medium class borrowers, which are satisfactory at the moment

  • BB: More prone to changes in the economy

  • B: Financial situation varies noticeably

  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.

Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings