Ethiopian Economy Ethiopian Economy

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