While the drought slowed down growth in 201516 the economy still expanded by 8 percent, which is a sign of increased economic resilience. Pdf the paper performs a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of. Ethiopia country development cooperation strategy 20192024 the goal for usaidethiopias 20192024 country development cooperation strategy cdcs is ethiopia transitions to a more democratic, prosperous, and resilient society, with accountable institutions and privatesector led growth. Growth and transformation plan gtp 201011201415, and reinforced by the crge. In 2018, ethiopia s real gross domestic product grew by around 7. The recent performance in economic growth and trade spark some questions. Introduction currently the objective of any developing country is to achieve sustainable economic. Pdf the impact of gender inequality on economic growth. 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.
Growth and transformation plan gtp 201011201415 draft. The ethiopian economy grew by 8 in 201516 due to the recent drought affecting agricultural production with spillovers on the trade. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. In effect, pasdep is explicitly linked to the mdgs and constitutes ethiopias medium term plan for achieving the mdgs. The same 10 countries in 2017 will also be the top 10 economic growth performers in 2018, though some movement occurs within this group. The world bank team welcomes feedback on the ethiopia economic update. Oct 05, 2018 ethiopias new leader, abiy ahmed, is seeking aggressive reforms to put an end to discord and build on the countrys progress in recent decades, but a towering set of challenges threatens his.
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. Oct 28, 2019 the statistic shows the growth in real gdp in ethiopia from 2014 to 2018, with projections up until 2024. However, the contribution of the industrial sector to gdp, employment and exports remains low. Effect of inflation on economic growth of ethiopia science. In effect, pasdep is explicitly linked to the mdgs and constitutes ethiopia s medium term plan for achieving the mdgs. Impact of foreign direct investment on economic growth of.
The second characteristic of ethiopia economic growth was fast economic growth. It was to be expected that ethiopias strong economic growth would slow down in 201516 due to the. Productive capacity and economic growth in ethiopia the united. Growth in subsaharan africa was 5% in 20 and is projected to be about. Recent economic developments strong economic growth continued in 201415, but the drought slowed down ethiopias growth to 8 percent in 201516. Ethiopias new leader, abiy ahmed, is seeking aggressive reforms to put an end to discord and build on the countrys progress in recent decades, but a towering set of challenges threatens his. In addition, private and official transfers, one of the largest external resources to ethiopia. Economic indicators for ethiopia including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and. This article argues that, in ethiopia, the aim to transform the performance of smallholder agricultural production is driven by the twin imperatives of. Apr 10, 2020 in 2004, ethiopian gdp gross domestic product was about 63% of kenyan gdp and 4. Ethiopia has experienced rapid economic growth since 2005.
Ethiopia aims to reach lowermiddleincome status by 2025. Ethiopia economic growth growth is expected to moderate this year, although it will remain healthy on the back of robust household spending, sustained public infrastructure investment and upbeat fdi amid ongoing economic liberalization efforts. Gdp per capita growth 20002014 in selected fast growing ssa countries, p. Ethiopia s economy experienced strong, broadbased growth averaging 9. Taxation is important mechanism that boosts countryas economic level.
Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. The ethiopian economy has experienced impressive growth performance. On the demand side, expansion in agricultural activities is supposed to increase demand for industrial products. Between 2006 and 2014, average africa economic growth was 4. Ethiopia gabon gambia ghana guinea guineabissau kenya. Learn how the world bank group is helping countries with covid19 coronavirus. This page provides ethiopia gdp annual growth rate actual values, historical data.
In 2018, ethiopias real gross domestic product grew by around 7. The federal democratic republic of ethiopia growth and transformation plan gtp 201011201415. The main objective of this paper is to test that, whether inflation is an indicator or obstacle for economic growth of ethiopia. The political economy of agricultural extension policy in. Ethiopia economy, politics and gdp growth summary the. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. The economic outlook is positive, and real gdp growth is projected to stabilize at 7. Global entrepreneurship and development index 2014. Productive capacity and economic growth in ethiopia. The performances and challenges of growth and transformation.
However, basic challenges such as unskilled labor, high transport costs. As you can see in the figure 2 below, the ethiopia economic growth 8 was higher than the ssa countries economic growth. The rating agencies underscored ethiopias stable outlook and positive prospects for continued economic growth in the short and medium term. Ethiopias main challenges are sustaining its positive economic growth and accelerating poverty reduction, which both require significant progress in job creation as well as improved governance. There has also been tremendous growth in the number, diversity and market share of private businesses in the ethiopian economy. According to the strategy of adli, growth in agriculture is supposed to induce overall economic growth by stimulating both demand and supply. This paper investigated empirical evidence on contributions of tax revenue for economic growth of ethiopia using time series data from 1993 to 2012.
Ethiopia gross domestic product gdp growth rate 2024. The economic growth rate and trade performance have reached 9 and 87%, respectively, over the period 20122014. Ethiopias national development plans place emphasis on promoting exportled industrialization with a focus on light manufacturing. The federal democratic republic of ethiopia international. Effect of inflation on economic growth of ethiopia. The federal democratic republic of ethiopia and the imf. Ethiopia belongs to saa countries where poverty is widespread though the country has recently experienced appealing economic growth. It is based on the information available at the time it was completed on september 5, 2014. Productive capacity and economic growth in ethiopia 1 introduction ethiopia is one of the largest least developed countries ldcs in subsaharan africa, with a popula. 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 authorities want the economy to transition away. Economic reform incorporating private sector is expected to help the economy grow faster.
Determinant of economic growth in case of ethiopia. At the contemporary periods, ethiopiaas economic growth transformed from single to double digit. The interaction between growth and inflation is one of the macroeconomic problems. Policy plan for accelerated and sustained development to. Growth should benefit from the homegrown economic reform program, which seeks to address macroeconomic imbalances and unlock structural. The eus priorities for euethiopia relations for the period 2014 to 2020 are to. If yes, is tradeled growth a longrun or shortrun phenomenon. Recent economic developments strong economic growth continued in 2014 15.
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. 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. Impact of foreign direct investment on economic growth of ethiopia a time series empirical analysis, 19742011 meskerem daniel menamo thesis for the degree of master of philosophy in environmental and development economics department of economics unversity of oslo januar, 2014. The government is devoting a high share of its budget to propoor programs and investments. Our view of the ethiopian economy is inspired by keynesian and structuralist thinking. Federal democratic republic of ethiopia, addis ababa. Ethiopia international cooperation and development. 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.
Although ethiopia has experienced high economic growth and some structural. Ethiopia economic outlook african development bank. This page provides ethiopia gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news. In 2004, ethiopian gdp gross domestic product was about 63% of kenyan gdp and 4. Economic indicators for ethiopia including actual values, historical data charts, an economic calendar, timeseries statistics, business news, long term forecasts and shortterm predictions for ethiopia economy. Pdf determinant of economic growth in case of ethiopia. Ethiopia economy gdp, inflation, cpi and interest rate. The main objective of this paper is to test that, whether inflation is an indicator or obstacle for economic growth of. Key growth drivers in ethiopia real gdp per capita 24. Oct 26, 2017 the world bank estimates that of the 10.
It is over 15 years since the last national human development report for ethiopia was published and much has changed in the intervening period. The ethiopia socioeconomic survey 202014 ess2 covered all regional states including the capital, addis ababa. Ethiopia s real gross domestic product gdp growth decelerated to 7. The agricultural sector is the countrys major source of economic growth under ethiopias growth transformation plan gtp, with. Ethiopias steady economic growth leads to poverty reduction. The statistic shows the growth in real gdp in ethiopia from 2014 to 2018, with projections up until 2024.
Rodrik 2014 argues that sus taining rapid growth in african countries is unlikely without a profound structural change in favor of manufacturing. Sources of inflation and economic growth in ethiopia. Economic growth, particularly in agriculture, has been an important driver of poverty reduction in. Gross domestic product gdp growth in ethiopia 19902014. The various reports have been published in 2014 which indicate the economic development in the world.
I am pleased to present the 2014 national human development report, which has been written on the theme of accelerating inclusive growth for sustainable human development in ethiopia. 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. Ethiopia s reform agenda is expected to support growth that is projected to be slightly below or above 8% in the near term. It was to be expected that ethiopia s strong economic growth would slow down in 201516 due to the. The majority of eu development funding to ethiopia is financed by the european development fund edf with the objectives of increasing resilience, accompanying reforms and promoting sustained agriculture and economic growth. 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. Ethiopia belongs to saa countries where poverty is widespread though the country. Federal democratic republic of ethiopia growth and transformation. Copies of this report are available to the public from. A woreda environment management planning manual was prepared. Ethiopia is one of the fastest developing countries situated in the northeastern corner of africa. Accordingly, investments on growth enhancing sectors such as infrastructure and social. With sustained economic growth at levels predicted by the imf, the wider world will have to reappraise its view of a nation thats blazing a trail for economic development on the african continent. Ethiopia gdp annual growth rate 19812018 data 20192020.
Economic highlights o ethiopias fy2012 gdp growth was 9. This paper investigated empirical evidence on contributions of tax revenue for economic growth of. Ethiopia s new prime minister has promised to jumpstart serious economic reforms. Ethiopia s growth miracle, coupled with its large population and significant land mass, has attracted. The impact of gender inequality on economic growth. Ethiopia gdp annual growth rate 19812018 data 2019. Considering forward linkages versus level of development, 2011.
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