Economic Growth
The economy has shown an annual growth of 11.4% in the year 2006/07 and the annual average growth rate at constant price was 11.7% for the period from 2003/04 to 2006/07. The growth of Ethiopian economy is forecasted to continue at a rate of 10.8% in 2007/08. This continuous and a-two-digit high growth would place Ethiopia among the fast growing countries in the world.
Merchandise export of the country has shown tremendous growth during the past five years since 2002/03. The total value exports of goods increased from 0.48 billion birr in 2002/03 to 1.18 billion birr in 2006/07 registering overall growth of 146%. Over the periods of ten years inflation remained at one digit level except in the years 2002/03, 2005/06 and 2006/07 where the inflation rates were 15.1 % 12.3% and 17.8 % respectively. Five years data on major economic indicators are shown in the following table.
Table 1: MAJOR ECONOMIC INDICATORS
|
1 |
|
2002/03 |
2003/04 |
2004/05 |
2005/06 |
2006/07 |
|
|
Real Sector Development
· GDP at Current Market Price (In Mn. USD)
· GDP per Capital( in US)
· Gross Private Consumption (%of GDP)
· Gross Domestic Fixed
Investment (% of GDP)
· GDP at 1999/2000 factor
Cost (In Mn. Birr)
· Real GDP Growth Rate (in %)
· Agriculture and Allied Activities (%of GDP)
· Industrial Sector (%of GDP)
· Services Sector (% of GDP) |
8,558.5
125.5
82.6
21.8
66,586.9
-2.1
44.6
13.9
41.5 |
10,041.8
143.3
81.9
25.5
74,397.1
11.7
46.7
13.9
39.4 |
12,306.4
170.8
84.8
23.0
83,804.0
12.6
47.0
13.5
39.4 |
15,167.8
204.8
84.3
24.2
93,495.1
11.6
46.7
13.3
40.0 |
19,43.5
255.4
83.8
25.0
104,177.1
11.4
45.9
13.3
40.8 |
|
2 |
General Inflation |
10.9 |
7.3 |
6.1 |
10.6 |
15.8 |
|
3 |
External Trade(Mn.USD)
· Export of Goods and Services
· Import Of Goods and Services
· Trade Balance |
1,139.6
2,346.7
-1,207.1 |
1,519.4
3,267.9
-1,748.5 |
1,870.49
4,352.72
-2,482.2 |
2,156.89
5,431.77
-3,274.9 |
2545.4
6332.7
-3787.3 |
Source: National Bank of Ethiopia, 2006/2006 Annual Report
|
Trends in Performance of the Economy: Growth Rates (%) |
|
Item
|
2002/03 |
2003/04 |
2004/05 |
2005/06 |
2006/07 |
2007/08 Per. Actual |
|
GDP in 1999/00 Prices |
-2.1 |
11.7 |
12.6 |
11.5 |
11.5 |
11.6 |
|
Agriculture |
-10.5 |
16.9 |
13.5 |
10.9 |
9.4 |
7.5 |
|
Industry |
6.5 |
11.6 |
9.4 |
10.2 |
10.2 |
10.4 |
|
O/w: Manufacturing |
0.8 |
6.6 |
12.8 |
10.6 |
8.3 |
7.1 |
|
Construction |
13.6 |
19.5 |
7.5 |
10.5 |
10.9 |
11.3 |
|
Services |
6.0 |
6.3 |
12.8 |
13.3 |
14.3 |
17.0 |
|
O/w: Banking and insurance |
10.8 |
19.7 |
24.2 |
28.7 |
15.1 |
24.9 |
|
Distributive services |
5.5 |
6.4 |
14.7 |
14.2 |
16.0 |
15.2 |
|
Other services |
6.5 |
6.1 |
10.9 |
12.5 |
13.1 |
14.2 |
|
Real GDP per capita GDP |
-4.6 |
10.7 |
9.0 |
8.0 |
7.5 |
7.6 |
|
Inflation |
15.1 |
8.6 |
6.1 |
10.6 |
15.8 |
25.3 |