World bank lauds ethiopias economic growth in a report. Under article iv of the imfs articles of agreement, the imf holds. However, the contribution of the industrial sector to gdp, employment and exports remains low. World economic outlook april 2016 too slow for too long. Ethiopia has recorded annual average gdp growth of about ten percent in. Use the free adobe acrobat reader to view this pdf file. Esw economic sector works eprdf ethiopian peoples revolutionary democratic front. The staff report for the 2019 article iv consultation and requests for threeyear. Finance statistics manual 2014 gfsm 2014, including an. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. The staff report prepared by a staff team of the imf for the executive boards consideration on. Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Even more, it provides a guide to the political economy of policy and policy. Imfs new report highlights ethiopias inclusive growth.
Global finance magazine ethiopia gdp and economic data. The african economic outlook aeo was prepared by a consortium of three teams from the african development bank afdb, the oecd development centre and the united nations development programme undp. Ethiopias economy shows strong resilience in 201617. Imf executive board concludes 2017 article iv consultation with the federal. The economy of ethiopia is a mixed and transition economy with a large public sector. In 2006, value added in agriculture accounts for 47% of gdp while industry and services account for % and 39% respectively. Statistics manual gfsm standards is an urgent task. Imf economic reports have become another way for ethiopia. World economic outlook, selected topics imf executive board discussion of the outlook, march 2016 international monetary fund.
In ethiopias ogaden region, violence resumed after talks failed between the government and the. Ethiopia under emperor haile selassie enjoyed a strong reputation among developing countries, especially among. The world bank public disclosure authorized ethiopia. Imfs board met earlier this week for a country consultations on ethiopia, following a report it received from a mission that has visited the country back in midseptember 2017. Article iv consultation with the federal democratic republic of ethiopia. Imf executive board concludes 2016 article iv consultation with the federal democratic republic of ethiopia.
The world bank ethiopia growth and competitiveness p168566. Selected economic and financial indicators, 20 14201516. The fiscal stance was appropriately countercyclical in fy16, aiming at minimizing the economic and social impact of the drought. Ethiopia s real gross domestic product is estimated to have expanded by 9 percent in 2016 17, according to imf. The authorities declared a sixmonth state of emergency in october 2016, enacting a variety of measures to restore peace.
Ethiopia aims to reach lowermiddleincome status by 2025. Imf report recommends further reforms in ethiopia regfollower. This paper describes economic developments in ethiopia during 199094. Transport sector development in ethiopia performance, policies and its role in the economy. The strong growth of ethiopia s economy in 201415, estimated at 10. Cso civil society organization imf international monetary fund. Browse additional economic indicators and data sets, selected by global finance editors, to learn more about ethiopia. International monetary fund vmun 2016 background guide 2 dear delegates, my name is jason qu, and i will be serving as the director for the imf committee of vmun 2016. African economic outlook 2016 algeria angola benin botswana burkina faso burundi cabo verde cameroon central african republic chad comoros congo congo, dem. Public disclosure authorized manufacturing services.
The federal democratic republic of ethiopia staff report for the 2016 article iv consultationinformational annex. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. Annual economic report ethiopian economic association. However, over the last three years, droughts and weak international prices for agricultural commodities dampened growth and opened an external imbalance.
The program is aimed at supporting the ethiopian governments own homegrown economic reform program, which is designed to eliminate macroeconomic imbalances and lay the foundation for sustainable and inclusive growth. The ethiopian government and some external organizations claim that ethiopia has recently become one of the fastest growing economies in the world. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The world bank team welcomes feedback on the ethiopia economic update. Ethiopia faced severe drought in 2015 requiring emergency food and aid in 2016 and. Country report 2017 includes ethiopia real gross domestic product growth rate, with latest forecasts and historical data, gdp per capita, gdp composition and breakdown by sector.
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. Jun 27, 2014 the international monetary fund imf has projected that ethiopias economy will experience robust growth in the next two years. Tsige, a british citizen, had been condemned to death in absentia by the ethiopian government in july 2014, as has berhanu nega. Imf economic reports have become another way for ethiopia to attack eritrea. For optimum experience we recommend to update your browser to the latest version. The article used the report published in 2014 by international monetary fund imf, world bank wb, africa development bank adb, world health organization who, and organization for economic cooperation and development oecd. Imf annual report 2016 international monetary fund. Jan 19, 2018 external imbalances and inadequate reserve buffers remain key risks to ethiopias economy, warn the board of directors of the international monetary fund imf. Ethiopia s national development plans place emphasis on promoting exportled industrialization with a focus on light manufacturing. With a long history as a sovereign christian state, ethiopia was for many years a key western focus, and was able to rely on massive development aid from abroad.
The federal democratic republic of ethiopia and the imf. For more than a decade before 2016, gdp grew at a rate between 8% and 11% annually one of the fastest growing states among the 188 imf member countries. Ethiopia a growth miracle 3 ethiopia s growth miracle, coupled with its large population and significant land mass, has attracted the attention of many international companies. In 199293, there was a significant recovery in the economy, which was reflected in virtually all sectors, with real gdp rebounding by an exceptional 12. But the imf s growth predictions are lower than those projected in ethiopia s fiveyear growth and transformation plan gtp. On 17 january 2018 the international monetary fund imf issued a report following the conclusion of consultations with ethiopia under article iv of the imf s articles of agreement. Fiscal consolidation has ensured low and stable fiscal deficits, despite a low taxgdp ratio, averaging 11% during 201619. The staff report prepared by a staff team of the imf for the executive boards. Ethiopia a growth miracle 4 political stability after more than two decades of civil war, the effects of which were exacerbated by international conflicts with somalia 1977 and 1998 and eritrea 1999 iv, ethiopia has now enjoyed more than a decade of peace.
Growth was driven mainly by the services sector from the supply side and public investment from the demand side. The imf report overlooks the real issues of ethiopian development, which deserve thorough investigation. In the context of the 2016 article iv consultation, the following documents have been released. 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. Following a decade of strong economic growth in ethiopia, the cpf addresses the challenges of forging a growth. A staff team visits the country, collects economic and financial information, and discusses with officials. Economic activity gained strength in the 20182019 fiscal year, which ended in july 2019, spurred by a strong services sector and soaring industrial production. Ethiopia s location gives it strategic dominance as a jumping off point in the horn of africa, close to the middle east and its markets. The authorities want the economy to transition away from. The government is implementing the second phase of its growth and transformation plan gtp ii which will run to 201920. The cumulative real appreciation since october 2010 the time of the last large nominal devaluation was 97 percent in june 2016. Ethiopia is africas fastestgrowing economy world economic.
This calls for a shift toward a more exportled model, the report notes, where the private sector can play a greater role in economic growth, export diversification and employment. Dec 03, 20 thus, what we are witnessing in ethiopia today is the same anticapitalist, command growth system, which continues to stifle the private sector and the economy through state ownership of the means of production and economic activities. External imbalances and inadequate reserve buffers remain key risks to ethiopia s economy, warn the board of directors of the international monetary fund imf. Access the latest politics analysis and economic growth summary through 2011 for ethiopia from the economist intelligence unit. Selected economic and financial indicators, 201516202324. Ethiopia has an impressive record of human development improvements and output growthaveraging about 10 percent in the last decadeunderpinned by public investment and productivity gains. The imf staff team said, the ethiopian economy showed strong resilience in 2016 17 amid continued weak global prices for ethiopia s key exports and reemergence of drought conditions in parts of the country.
Cas pr cas progress report cbe commercial bank of ethiopia comesa common market for eastern and. Acknowledgements the report was prepared by a team consisting of mesfin girma bezawagaw senior economist, nora dihel senior economist, michael. International monetary fund vmun 2016 background guide 1. High inflation has, however, contributed to overvaluation of the ethiopian birr despite the 15% devaluation in 2017, necessitating a gradual shift to a more competitive exchange rate.
Overall, this is a book that must be read before anyone can claim to have an understanding of the ethiopian economy. Ethiopia is one of seven countries being supported by the world bank, through funding from the bill and melinda gates foundation bmgf, to strengthen the production of householdlevel data on agriculture. Imf international monetary fund lms light manufacturing in africa. Adoption of current government finance statistics manual gfsm standards. Hdr 2009 report gives the country a rank of 171 with an hdi of 0. According to the latest international monetary fund imf economic outlook for africa, ethiopia s economy is forecast to grow 8. Selected economic and financial indicators, 2014201516. By hailemichael derese tigrai online, october 21, 20. Ethiopias economy will show robust growth imf the africa. The share of the population living below the national poverty line decreased from 30% in 2011 to 24% in 2016. Ethiopia economic update the inescapable manufacturing services nexus. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established.
Ethiopia is africas fastestgrowing economy for 2019. Imf international monetary fund ipp independent power producer. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. The international monetary fund imf in its october 20 report concludes that ethiopia s robust economic growth in recent years has been accompanied by significant poverty reduction and improved. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Imf annual report 2017 english international monetary fund.
Ethiopia economy gdp, inflation, cpi and interest rate. Private sector development in ethiopia with particular emphasis to the manufacturing sector. Imf s new report highlights ethiopias inclusive growth. For more than a decade before 2016, ethiopia grew at a rate between 8% and 11% annually one of the fastest growing states among the 188 imf member countries. Annual report on the ethiopian economy ethiopian economic. But a new ethiopia is emerging from troubled times and the latest international monetary fund imf forecast says ethiopia will be the fastestgrowing economy in subsaharan africa in 2018.
S economics is the study of the scarcity of resources, and the subsequent. Ethiopia economy, politics and gdp growth summary the. Selected economic and financial indicators, 200910201617. Country report on the implementation of the brussels program of action bpoa february, 2010. At the 2016 imf wbg annual meetings, governors will consider broad proposals on the forward look document. The staff report for the 2017 article iv consultation, prepared by a staff team of the imf for the executive boards consideration on january 12, 2018, following discussions that ended on september 26, 2017, with the officials of the federal democratic republic of ethiopia on economic developments and policies. Georges school and have participated in mun since grade 6. The year was marked by difficult challenges and milestone achievements. The newly issued fiveyear second growth and transformation plan gtp ii envisages continued high growth and public infrastructure investment, while placing a greater emphasis on private sector development and foreign direct investment fdi, competitiveness, and exportoriented industrialization. Ethiopia s average annual gdp growth has been around 10% in the past decade buoyed by government investment in agriculture and infrastructure. African economic outlook 2016 african development bank. Construction and services sectors account for most of the growth from the supply side. The main purpose of this brief article is to present the recent economic development in ethiopia. The staff report for the 2012 article iv consultation, prepared by a staff team of the imf.
Ethiopia ethiopias financial sector is relatively underdeveloped, with about twothirds of. Although the improved security situation in the country and, subsequently, the emergence of a favorable economic and political climate set the. Jan 18, 2018 on 17 january 2018 the international monetary fund imf issued a report following the conclusion of consultations with ethiopia under article iv of the imfs articles of agreement. The views expressed in this publication are those of the. The ethiopian economy grew by 8 in 201516 due to the recent drought affecting agricultural production with spillovers on the trade sector. Ethiopia economic outlook african development bank. Ethiopia has the 2nd largest labor force in africa with 50 million workers. The federal democratic republic of ethiopia staff report for the 2016 article iv consultationdebt sustainability analysis. It is based on the information available at the time it was completed on november, 2018. The imf s transparency policy allows for the deletion of marketsensitive information and premature disclosure of the authorities policy intentions in published staff reports and other documents.
The staff report prepared by a staff team of the imf for the executive boards consideration on september 26, 2016, following discussions that ended on june 22, 2016, with the officials of the federal democratic republic of ethiopia on. Ethiopia economic update overcoming inflation, raising competitiveness the world bank the world bank. The report was prepared by a team consisting of mesfin girma. Access the latest politics analysis and economic growth summary through 2011 for ethiopia from the economist intelligence unit ethiopia economy, politics and gdp growth summary the economist intelligence unit. Imf s board met earlier this week for a country consultations on ethiopia, following a report it received from a mission that has visited the country back in midseptember 2017. The economic update also examines services in ethiopias economy, including the role of exports as tradable activities and intermediate inputs to manufacturing.
The staff report prepared by a staff team of the imf for the executive boards consideration on september 21, 2015, following discussions that ended on june 17, 2015, with the officials of the federal democratic republic of ethiopia on economic developments and policies. Bordering eritrea, somalia, kenya, south sudan, and sudan, ethiopia is landlocked, and has been using neighboring djiboutis. To reinvigorate modest growth at a time of uncertainty about a complicated global economy, the imf membership endorsed a threepronged approach of monetary, fiscal, and structural policies to get the world economy back on a stronger and safer growth track. September 26, 2016 consideration of the staff report on issues related to the article iv consultation. 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. The human capital index hci database provides data at the country level for each of the components of the human capital index as well as for the overall index, disaggregated by gender.
With about 109 million people 2018, ethiopia is the second most populous nation in africa after nigeria, and the fastest growing economy in the region. Copies of this report are available to the public from international monetary fund publication services. The strong growth of ethiopias economy in 201415, estimated at 10. Fiscal consolidation has ensured low and stable fiscal deficits, despite a low taxgdp ratio, averaging 11% during 2016 19. The expansion in economic activity has contributed to poverty reduction. The spring meetings will take place virtually on april 1417, 2020. The economic update also examines services in ethiopia s economy, including the role of exports as tradable activities and intermediate inputs to manufacturing. Higher economic growth brought with it positive trends in poverty reduction in both urban and rural areas. As used in this report, the terms country and economy do not in all cases refer to a territorial entity that is a state as. The ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10.
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