Ethiopia economy gdp, inflation, cpi and interest rate. Farmers have reacquired the economic freedom of price, of production, and of settlement. Growth and transformation plan ii gtp ii 201516201920. Economic development ethiopia issues, growth, economic. It in particular examines how fdi affects gdp growth, both directly and also conditioning on trade liberalization that ethiopia adopted in early 1990s. Ethiopias location gives it strategic dominance as a jumping off point in the horn of africa, close to the middle east and its markets.
The second growth and transformation plan gtp ii 201516 201920 aims to help ethiopia achieve lower middle income status by 2025. Goods exports showed positive growth in 2014 but rates remained far below their historical growth. International monetary fund december 2015 tax policy and. Ethiopias economy is highly vulnerable to exogenous shocks by. Oct 26, 2017 the story of ethiopias incredible economic rise. Growth should benefit from the homegrown economic reform program, which seeks to address macroeconomic imbalances and unlock structural and sectoral bottlenecks, improving governance of stateowned enterprises and strengthening institutional capacities. The world bank team welcomes feedback on the ethiopia economic update. Ethiopia is driving economic growth through the governments laserlike focus on sectors such as manufacturing, energy and infrastructure. Growth and transformation plan 201516201920 is aimed at achieving rapid, inclusive and.
Ethiopia economic outlook african development bank. Since 1983 when the grameen bank in bangladesh began making tiny loans to village savings. Growth and transformation plan gtp 201011201415 draft. 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. Thus, gtp ii is primarily considered to be an important milestone towards. Pdf determinant of economic growth in case of ethiopia. The policy of the ethiopian government is to create the conditions necessary for sustained economic growth.
Economic growth, particularly in agriculture, has been an important driver of poverty reduction in. Effect of inflation on economic growth of ethiopia science. In 201516 there were 363 branches of private banks and 1 branches of government banks. Document economic development shows the change in economic growth and at the same time change in the living standard of the people. Introduction planning can be defined as a continuous process which involves decisions or choices, about. Selection of key themes for ethiopia developmental state via 5 year plans rapid industrialisation strategy key role of logistics infrastructure in growth building tourism around ethiopian airlines fragile state political unrest emergency rule o. The economic outlook is positive, and real gdp growth is projected to stabilize at 7. Inflation has remained in single digits for the last two years. The share of industry in gdp includes that of manufacturing. Ethiopias economic growth for the 2012 fiscal year was 9.
The tenth annual conference focusing on the amhara regional state social and economic development was organized by eea in collaboration with its bahir dar chapter on november 30, 2019 at homeland hotel conference hall, bahir dar. Poverty defined as the number of people unable to attain the minimum living standard 3. There has also been tremendous growth in the number, diversity and market share of private businesses in the ethiopian economy. Overall, the number of bank branches nationwide increased from 3187 in fy 201415 to 3681 in fy 2015 16. In developing countries like ethiopia economic growth is one. The government is implementing the second phase of its growth and transformation plan gtp ii which will run to 201920. Mrs dhanya jagadeesh the impact of savings on economic growth. Status of structural transformation in ethiopia prospects and challenges of structural transformation in ethiopia. An empirical study based on botswana 11 international journal of research in business studies and management v2 i9 september 2015. Ethiopia has experienced rapid economic growth since 2005. 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. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. Yet despite progress toward eliminating extreme poverty, ethiopia remains one of the poorest countries in the world, due both to rapid population growth and a low starting base.
Article iv consultation with the federal democratic republic of ethiopia. By sustaining the current economic growth over the next five year period. Ethiopia economy, politics and gdp growth summary the. Pdf infrastructure development and economic growth in. Public disclosure authorized manufacturing services nexus. Public protests disrupted the nation in 2016 in the oromia and amhara regions, with the protesters citing concerns about political and economic marginalization. Assessing the performance of gtp i and re ecting on gtp ii seid nuru ali ethiopian economics association ethiopian economic policy research institute october 3, 2015 addis ababa.
Access the latest politics analysis and economic growth summary through 2011 for ethiopia from the economist intelligence unit. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. The share of the population living below the national poverty line decreased from 30% in 2011 to 24% in 2016. Considering 2015 is the year the first growth and transformation. Even angles get angry why god give ethiopian high lander a. Prospects and challenges of structural transformation in. There are many ways in which the ethiopian economy can be applied to different areas of the a level economics course.
Economic growth, development and poverty in ethiopia. Apr 12, 2017 this is a revision presentation on aspects of growth and development in the fastgrowing country of ethiopia. The growth acceleration period marked the rise of the services sector in ethiopia. Structural transformation, employment, production and society. This page has economic forecasts for ethiopia including a longterm outlook for the next decades, plus mediumterm expectations for the next four quarters and shortterm market predictions for the next release affecting the ethiopia economy. According to official statistics, ethiopias annual rate of economic growth, which averaged 10. Growth should benefit from the homegrown economic reform program, which seeks to address macroeconomic imbalances and unlock structural. Geography and planning microfinance and poverty alleviation in ethiopia.
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. Ethiopia gdp annual growth rate 19812018 data 2019. However, basic challenges such as unskilled labor, high transport costs. Economic growth and poverty in ethiopia economic growth refers to an increase in the national income or per capita income 2. Since 1991, the ethiopian government has embarked on a program of economic reform, including privatization of state enterprises and rationalization of government regulation. The major objective of gptii is to serve as a springboard towards realizing the national vision of becoming a low middleincome country by 2025, through sustaining the rapid, broadbased, and inclusive economic growth, which accelerates economic transformation and the journey. Growth and transformation plan ii gtp ii 2015162019. Productive capacity and economic growth in ethiopia the united. Environmental issues in ethiopia and links to the ethiopian. This is slightly faster growth than on average over the past 6 months mainly due to an increase in food inflation. This page provides ethiopia gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news. In developing countries like ethiopia economic growth is. The main objective of this paper is to test that, whether inflation is an indicator or obstacle for economic growth of ethiopia.
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. The various reports have been published in 2014 which indicate the economic development in the world. Yet, a number of issues warrant the attention of policy makers. While the drought slowed down growth in 201516 the economy still expanded by 8 percent, which is a sign of increased economic resilience. Higher economic growth brought with it positive trends in poverty reduction in both urban and rural areas. Cardiff school of geography and planning microfinance and. The scheme aims to achieve rapid, sustainable and broadbased economic growth through enhancing product ivity of. The oxford handbook of the ethiopian economy edited by fantu cheru, christopher cramer, and arkebe oqubay oxford handbooks. 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. Public disclosure authorized manufacturing services. The ethiopian economy significantly deteriorated due to the civil war and famines of the 1970s and 1980s. Determinant of economic growth in case of ethiopia. Growth and transformation plan ii united nations in ethiopia. An empirical study based on botswana international journal of research in business studies and management v2 i9 september 2015 12 earning around 70% of total household income jefferis, 2011.
Productive capacity is defined broadly as the natural resource potential, accumulation of human capital and the institutions that facilitate inclusive and sustainable economic growth. Considering 2015 is the year the first growth and transformation plan gtpthe. The ethiopian economy has experienced impressive growth performance over the. Growth and transformation plan ii gtp ii 2015 16201920 27 0 121 981 21 927. The interaction between growth and inflation is one of the macroeconomic problems. Impact of foreign direct investment on economic growth of. Theoretically and empirically it has been tested that infrastructure affects economic growth either by reducing the cost of intermediate goods or through externality effect. Ethiopia gdp annual growth rate 19812018 data 20192020. Growth and transformation plan ii gtp ii is ethiopias fiveyear development plan for 2015 2020. The government aspires to an agricultureled industrialization and focuses its attention on food security, rural savings, and labor formation. Pdf infrastructure development and economic growth in ethiopia. The ethiopian economics association eea was established as a nonprofit making, nonpolitical and nonreligious.
The relationship between infrastructure development and economic growth is investigated for ethiopia during the period 1974752014 15. In modern ethiopian political economic history, we can distinguish three regimes that followed unique macroeconomic policies with its impact on macroeconomic growth performance of the country. Shares of services in total exports, 2005 and 2015. Changes in rainfall associated with worldwide weather patterns resulted in the worst drought in 30 years in 201516, creating food insecurity for millions of ethiopians. 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.
The performances and challenges of growth and transformation. In may 2015, the headline inflation continued its upwards trend, albeit on relatively low levels, and reached 9. The ethiopian economy grew by 8 in 2015 16 due to the recent drought affecting agricultural production with spillovers on the trade sector. Bordering eritrea, somalia, kenya, south sudan, and sudan, ethiopia is landlocked, and has been using neighboring djiboutis. The major objective of gptii is to serve as a springboard towards realizing the national vision of becoming a low middleincome country by 2025, through sustaining the rapid, broadbased, and inclusive economic growth, which accelerates economic transformation and the journey towards the country. The study elucidates the mystery surrounding the belief that, infrastructure development induces economic growth.
The relationship between infrastructure development and economic growth is. Bordering eritrea, somalia, kenya, south sudan, and sudan, ethiopia is landlocked, and has been using neighboring djiboutis main port for the last two decades. Ethiopia aims to reach lowermiddleincome status by 2025. Ethiopias economic growth performance african development bank. World bank lauds ethiopias economic growth in a report. The ethiopian government has developed comprehensive agricultural and economic development plans that have contributed to the countrys substantial growth in agriculture, industry and services. Effect of inflation on economic growth of ethiopia. Federal democratic republic of ethiopia growth and transformation. The performances and challenges of growth and transformation plan i in ethiopia. The major objective of gtp ii is to serve as a spring board towards realizing the national vision of becoming a low middleincome country by 2025, through sustaining the rapid, broad based and inclusive economic growth, which accelerates economic transformation and the journey towards the countrys renascence. This robust growth reinforced economic reform and poverty reduction efforts aimed at achieving the mdgs by 2015. Ethiopias growth and transformation plan gtp, for the fiveyear period 20102015. Ethiopias growth and transformation plan gtp, for the fiveyear period 2010 2015.
The oxford handbook of the ethiopian economy fantu cheru. Pdf the paper performs a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of. The economic development in africa report 2015 was prepared by a team. Ethiopia growth and transformation plan ii gtp ii green. The second growth and transformation plan gtp ii 2015 16 201920 aims to help ethiopia achieve lower middle income status by 2025. A notable example can be found in the grand ethiopian renaissance dam gerd where ethiopia plans to leverage the blue nile to become africas largest exporter of electricity. 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. Productive capacity and economic growth in ethiopia. Growth and transformation plan ii gtp ii is ethiopias fiveyear development plan for 20152020. Economic growth remained at a respectable 8% in 2015.
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