Ethiopian Economy

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Ethiopian economy

Economy overview:

Ethiopia's poverty-stricken economy is based on agriculture, accounting for almost 45% of GDP, and 85% of total employment. The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Ethiopian economy with exports of some $350 million in 2006, but historically low prices have seen many farmers switching to qat to supplement income. Under Ethiopia's constitution, the state owns all land and provides long-term leases to the tenants; the system continues to hamper growth in the industrial sector as entrepreneurs are unable to use land as collateral for loans. In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and in December 2005 the IMF forgave Ethiopia's debt. The global economic downturn led to balance of payments pressures, partially alleviated by recent emergency funding from the IMF. While GDP growth has remained high, per capita income is among the lowest in the world.

Population:	90,873,739 (July 2011 est.)
Age structure:	0-14 years: 46.3% (male 20,990,369/female 21,067,961) 15-64 years: 51% (male 22,707,235/female 23,682,385) 65 years and over: 2.7% (male 1,037,488/female 1,388,301) (2011 est.)
Median age:	total: 16.8 years male: 16.5 years female: 17.1 years (2011 est.)
Population growth rate:	3.194% (2011 est.)
Birth rate:	42.99 births/1,000 population (2011 est.)
Death rate:	11.04 deaths/1,000 population (July 2011 est.)
Infant mortality rate:	total: 77.12 deaths/1,000 live births male: 88.03 deaths/1,000 live births female: 65.88 deaths/1,000 live births (2011 est.)
Life expectancy at birth:	total population: 56.19 years male: 53.64 years female: 58.81 years (2011 est.)
Total fertility rate:	6.02 children born/woman (2011 est.)
GDP (purchasing power parity):	$86.12 billion (2010 est.) $79.74 billion (2009 est.) $72.48 billion (2008 est.) note: data are in 2010 US dollars
GDP (official exchange rate):	$29.72 billion (2010 est.)

GDP - real growth rate:

8% (2010 est.)
10% (2009 est.)
11.2% (2008 est.)

GDP - per capita:

$1,000 (2010 est.)
$900 (2009 est.)
$900 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector:

agriculture: 50%
industry: 11%
services: 39% (2010 est.)

Investment (gross fixed):	24.6% of GDP (2010 est.)
Household income or consumption by percentage share:	lowest 10%: 4.1% highest 10%: 25.6% (2005)

Distribution of family income - Gini index:	30 (2000) 40 (1995)
Inflation rate (consumer prices):	8.1% (2010 est.) 8.5% (2009 est.)

Labor force:

37.9 million (2007)

Labor force - by occupation:

agriculture: 85%
industry: 5%
services: 10% (2009 est.)

Unemployment rate:

Budget:

revenues: $4.59 billion
expenditures: $5.021 billion (2010 est.)

Public debt:	47.9% of GDP (2010 est.) 40.9% of GDP (2009 est.)
Commercial bank prime lending rate:	14.5% (31 December 2010 est.) 14.183% (31 December 2009 est.)
Stock of narrow money:	$4.525 billion (31 December 2010 est.) $5.093 billion (31 December 2009 est.)
Stock of broad money:	$7.807 billion (31 December 2010 est.) $8.851 billion (31 December 2009 est.)
Stock of domestic credit:	$8.217 billion (31 December 2010 est.) $9.524 billion (31 December 2009 est.)
Agriculture - products:	cereals, pulses, coffee, oilseed, cotton, sugarcane, potatoes, qat, cut flowers; hides, cattle, sheep, goats; fish
Industries:	food processing, beverages, textiles, chemicals, metals processing, cement

Industrial production growth rate:

9.5% (2010 est.)

Electricity - production:

3.715 billion kWh (2008 est.)

Electricity - production by source:

fossil fuel: 1.3%
hydro: 97.6%
other: 1.1% (2001)
nuclear: 0%

Electricity - consumption:

3.357 billion kWh (2008 est.)

Electricity - exports:

0 kWh (2009)

Electricity - imports:

0 kWh (2009)

Oil - production:	0 bbl/day (2010 est.)
Oil - consumption:	47,000 bbl/day (2010 est.)
Oil - exports:	0 bbl/day (2009)
Oil - imports:	33,480 bbl/day (2009 est.)
Oil - proved reserves:	430,000 bbl (1 January 2011 est.)
Natural gas -proved reserves:	24.92 billion cu m (1 January 2011 est.)
Current account balance:	-$1.905 billion (2010 est.) -$2.191 billion (2009 est.)

Exports:

$1.716 billion (2010 est.)
$1.538 billion (2009 est.)

Exports - commodities:

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

Exports - partners:

China 13.9%, Germany 10.5%, Belgium 7.5%, Saudi Arabia 7.1%, US 6.8%, Sudan 4.6% (2010)

Imports:	$6.988 billion (2010 est.) $6.819 billion (2009 est.)
Imports - commodities	food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals, textiles

Imports - partners:

China 15.1%, US 9.5%, Saudi Arabia 8.8% (2010)

Reserves of foreign exchange & gold:	$1.807 billion (31 December 2010 est.) $1.781 billion (31 December 2009 est.)
Debt - external:	$5.67 billion (31 December 2010 est.) $5.025 billion (31 December 2009 est.)

Economic aid - recipient:

$1.6 billion (FY05/06)

Currency:

birr (ETB)

Currency code:

ETB

Exchange rates:

birr (ETB) per US dollar -
14.4 (2010)
11.78 (2009)
9.57 (2008)
8.96 (2007)
8.69 (2006)
note: since 24 October 2001, exchange rates are determined on a daily basis via interbank transactions regulated by the Central Bank

Fiscal year:

8 July - 7 July