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Prime Minister of Ethiopia

Meles Zenawi

 Economy of Ethiopia

Ethiopia's economy is based on agriculture, accounting for half of GDP, 60% of exports, and 80% of total employment.  Coffee is critical to the Ethiopian economy with exports of some millions of dollars but historically low prices have seen many farmers switching.

In December 2005 the International Monetary Fund voted to forgive Ethiopia's debt to the body. Under Ethiopia's land tenure system, the government owns all land and provides long-term leases to the tenants.

 
Ethiopia map - Can you locate Addis Ababa

Above is the Ethiopia map.  Did you notice that the capital of Ethiopia, Addis Ababa, lies right in the middle of the Ethiopia map

 

 

 
 

 

 

 

Can you name 3 cities in close to Addis Ababa.  See the Ethiopia map above

 

 

 

 

 

 

 

 

 

 
Facts on the Economy of Ethiopia
GDP of Ethiopia (purchasing power parity):
$62.88 billion (2005 est.)
GDP of Ethiopia (official exchange rate):
$8.819 billion (2005 est.)
GDP - real growth rate:
8.9% (2005 est.)
GDP - per capita (PPP):
$900 (2005 est.)
GDP of Ethiopia- composition by sector:
agriculture: 40.1%
industry: 12.7%
services: 47.2% (2005 est.)
Labor force:
NA
Labor force - by occupation:
agriculture: 80%
industry: 8%
services: 12% (1985)
Unemployment rate:
NA%
Population of Ethiopia below poverty line:
50% (2004 est.)
Household income or consumption by percentage share:
lowest 10%: 3%
highest 10%: 33.7% (1995)
Distribution of family income - Gini index:
30 (2000)
Inflation rate (consumer prices):
6% (2005 est.)
Investment (gross fixed):
20.8% of GDP (2005 est.)
Budget of Ethiopia:
revenues: $2.338 billion
expenditures: $2.88 billion; including capital expenditures of $788 million (2005 est.)
Agriculture - products :
cereals, pulses, coffee, oilseed, cotton, sugarcane, potatoes, qat, cut flowers; hides, cattle, sheep, goats; fish
Industries: in Ethiopia
food processing, beverages, textiles, leather, chemicals, metals processing, cement
Industrial production growth rate:
6.7% (2001 est.)
Electricity - production:
2.058 billion kWh (2003)
Electricity in Ethiopia- production by source:
fossil fuel: 1.3%
hydro: 97.6%
nuclear: 0%
other: 1.2% (2001)
Electricity - consumption:
1.914 billion kWh (2003)
Electricity - exports:
0 kWh (2003)
Electricity - imports:
0 kWh (2003)
Oil - production:
0 bbl/day (2003 est.)
Oil - consumption:
27,000 bbl/day (2003 est.)
Oil - exports:
NA bbl/day
Oil - imports:
NA bbl/day
Oil - proved reserves:
214,000 bbl (1 January 2002)
Natural gas - production:
0 cu m (2003 est.)
Natural gas - consumption:
0 cu m (2003 est.)
Natural gas - proved reserves:
24.92 billion cu m (1 January 2002)
Current account balance:
$-1.023 billion (2005 est.)
Exports:
$612 million f.o.b. (2005 est.)
Exports - commodities:
coffee, qat, gold, leather products, live animals, oilseeds
Exports of Ethiopia - partners:
Djibouti 13.3%, Germany 10%, Japan 8.4%, Saudi Arabia 5.6%, US 5.2%, UAE 5%, Italy 4.6% (2004)
Imports:
$2.722 billion f.o.b. (2005 est.)
Imports - commodities:
food and live animals, petroleum and petroleum products, chemicals, machinery, motor vehicles, cereals, textiles
Imports - partners:
Saudi Arabia 25.3%, US 15.8%, China 6.6% (2004)
Reserves of foreign exchange and gold:
$1.192 billion (2005 est.)
Debt - external:
$2.9 billion (2001 est.)
Economic aid - recipient:
$308 million (FY00/01)
Currency (code):
birr (ETB)
Currency code:
ETB
Exchange rates of Ethiopia:
birr per US dollar - 8.68 (2005), 8.6356 (2004), 8.5997 (2003), 8.5678 (2002), 8.4575 (2001)
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

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