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Ethiopia Economy

    Economy—overview: Ethiopia remains one of the least developed countries in the world. Its economy is based on agriculture, which accounts for more than half of GDP, 90% of exports, and 80% of total employment; coffee generates 60% of export earnings. The agricultural sector suffers from frequent periods of drought, poor cultivation practices, and deterioration of internal security conditions. The manufacturing sector is heavily dependent on inputs from the agricultural sector. Over 90% of large-scale industry, but less than 10% of agriculture, is state-run. The government is considering selling off a portion of state-owned plants and is implementing reform measures that are gradually liberalizing the economy. A major medium-term problem is the improvement of roads, water supply, and other parts of an infrastructure badly neglected during years of civil strife. Renewed fighting with Eritrea dims economic prospects for 1999.

    GDP: purchasing power parity—$32.9 billion (1998 est.)

    GDP—real growth rate: 6% (1998 est.)

    GDP—per capita: purchasing power parity—$560 (1998 est.)

    GDP—composition by sector:
    agriculture: 55%
    industry: 12%
    services: 33% (1995 est.)

    Population below poverty line: NA%

    Household income or consumption by percentage share:
    lowest 10%: NA%
    highest 10%: NA%

    Inflation rate (consumer prices): 3.9% (1998 est.)

    Labor force: NA

    Labor force—by occupation: agriculture and animal husbandry 80%, government and services 12%, industry and construction 8% (1985)

    Unemployment rate: NA%

    Budget:
    revenues: $1 billion
    expenditures: $1.48 billion, including capital expenditures of $415 million (FY96/97)

    Industries: food processing, beverages, textiles, chemicals, metals processing, cement

    Industrial production growth rate: NA%

    Electricity—production: 1.32 billion kWh (1996)

    Electricity—production by source:
    fossil fuel: 7.58%
    hydro: 87.12%
    nuclear: 0%
    other: 5.3% (1996)

    Electricity—consumption: 1.32 billion kWh (1996)

    Electricity—exports: 0 kWh (1996)

    Electricity—imports: 0 kWh (1996)

    Agriculture—products: cereals, pulses, coffee, oilseed, sugarcane, potatoes; hides, cattle, sheep, goats

    Exports: $550 million (f.o.b., 1998)

    Exports—commodities: coffee, leather products, gold, oilseeds (1995)

    Exports—partners: Germany 26%, Japan 11%, Italy 10%, UK 8%, Djibouti, Saudi Arabia (1996 est.)

    Imports: $1.3 billion (f.o.b., 1998 est.)

    Imports—commodities: food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles and aircraft (1994)

    Imports—partners: Italy 11%, US 11%, Germany 7%, Saudi Arabia 4% (1996 est.)

    Debt—external: $10 billion (1996)

    Economic aid—recipient: $367 million (FY95/96)

    Currency: 1 birr (Br) = 100 cents

    Exchange rates: birr (Br) per US$1 (end of period)—7.58 (January 1999), 6.8640 (1997), 6.4260 (1996), 6.3200 (1995), 5.9500 (1994)
    note: since May 1993, the birr market rate has been determined in an interbank market supported by weekly wholesale auction; prior to that date, the official rate was pegged to US$1 = 5.000 birr

    Fiscal year: 8 July—7 July

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Revised 1-Mar-99
Copyright © 1999 Photius Coutsoukis (all rights reserved)