Ethiopian economic growth pdf merge

Program coordinator, centre for world solidarity, 12438, st. A ccording to the world bank, the ethiopian economy saw strong growth between the years 200304 and 2014. The ethiopian rift valley lakes basin rvlb is one of the twelve ethiopian river basin ecosystems which share a common geological structure, history and similar biological resources. Real total and percapita gdp grew at average rates of 3.

Ethiopian society, economy and environment potentials and problems that. Facts about ethiopia africa facts africa facts web. Endalew mekonen aflatoxin and salmonella coordinater mr. Ethiopias growth and transformation plan gtp, for the fiveyear period 20102015. Economic recession, adjustment policies and continued high rates of urbanization and population growth have led to an unexpected and unprecedented expansion of the informal sector in many developing countries, as modern sector enterprises, and especially the public sector, have been. The 1996 economic reform plan promoted free markets and liberalized trade laws as essential to economic growth. Overview of ethiopian economy this chapter presents economic growth history of ethiopia. A research on women in the informal economy in three. Industry, mainly construction, and services accounted for most of the growth. Economic highlights five year average real gross domestic product gdp growth of 11% govt 200910 gdp growth was 10. Growth was driven mainly by the services sector from the supply side and public investment from the demand side. In per capita terms the average growth rate was about 1. The economy of ethiopia is a mixed and transition economy with a large public sector. Pdf infrastructure development and economic growth in.

However, the speed with which the reform process should proceed is a debatable issue as it is concerned with the economic performance of a country prior to the introduction of economic reforms. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. The exportled growth has been the focus of ethiopian economic policy since 1992. Copies of this report are available to the public from. Ethiopia is a fascinating country to use as a case study in economic growth and development according to a recent editorial in the financial times, ethiopia has transformed in 20 years from a famineravaged nation into a destination for savvy and wellknown private equity groups such as kkr. Growth and development in ethiopia economics tutor2u. Descriptive analysis of macroeconomic indicators since 1992 is also made. It is based on the information available at the time it was completed on september 5, 2014. Ethiopias fdi steady growth, an upshot of its economic diplomacy foreign direct investment normally comes to places where there is existent potential both in market and notmarket assets and overall dependability and political stability of the country. Due to the ongoing urbanisation and growth of the worlds population, there will be about 2. Economic growth and poverty red uction in ethiopia. The paper starts with an overview of ethiopias economic growth and the change in the domes tic economic structure.

In brief, we find that ethiopias rapid economic growth, concentrated in agriculture and services, was driven by substantial public infrastructure investment and supported by a. Middle class and the working poor are the true back bone of society. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. Ethiopias real gross domestic product gdp growth decelerated to 7. It is based on a methodology that the british council has employed in six other countries in africa and asia. Agriculture and the economic transformation of ethiopia. 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. Ethiopia focuses on entrepreneurs to maintain economic growth. Djibouti continues to cultivate cordial relations with ethiopia, reflecting the fundamental economic ties between the two countries and a long tradition of interchanges. Ethiopia the second most populous country in africa is a oneparty state with a planned economy. Armenians and greeks, who first settled in ethiopia long ago, are now well. Although data showing healthy export growth points to a good start to fiscal year 2019a2020 july 2019july 2020, the outbreak of coronavirus will be taking a heavy toll on the economy. In general, agricultural growth rates averaged 2% between 198081 and. Impact of foreign direct investment on economic growth of.

Ethiopian government drafted the tourism development policy in order to maximize benefit and accelerate ethiopian tourism industry from its low stage. In june 2007, former ethiopian prime minister meles zenawi. Co integration and causality analysis fitsum sharew denbel, yilkal wassie ayen and teshome adugna regasa phd senior expert, ethiopian shipping and logistics service enterprise, addis ababa ethiopia. We take as a lifeline for our continuous economic growth, genet said. The economic outlook is positive, and real gdp growth is projected to stabilize at 7. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. In india most of the footwear manufacture takes place in the unorganized sector, which is another drawback to promote the products in the international market. Both believe ethiopia needs a stronger private sector to maintain its fast economic growth. Case study on marketing of ethiopia tour package term paper.

Economic growth during this period 199091199900 was quite impressive. The paper starts with an overview of economic growth and the change in the domestic economic structure. But there were also challenges, including an attempted coup. The ethiopian government and the united nations development program, undp, have launched a threeyear program to train the entrepreneurs. This page provides ethiopia gdp annual growth rate actual values, historical data, forecast, chart. Economic growth and poverty in ethiopia economic growth refers to an increase in the national income or per capita income 2. The more recent and growing interest in the associated problems of economic dynamics and economic growth, a marked characteristic of economic studies since world war ii, has stimulated further. Through numerous writings and famous poetic works, this living legend, novelist, poet hailu gebre yohannes has already won the minds, taken the souls and stolen the hearts of numerous ethiopians. The gross domestic product gdp in ethiopia expanded 9 percent in 2018 from the previous year. Dec 18, 2019 the few milestones, gained by the ethiopian jews in some socioeconomic and political spheres, as shown by the aice report, are surely evidence of the multiple factorsracial, cultural, structural, spatial, economic, human, financial, and educationalthat the segmented assimilation theory premises as a way to gauge immigrants divergent. In 20, the economic growth recorded in ethiopia was 9. The impact of remittance on economic growth and poverty. Determinant of economic growth in case of ethiopia. This year, major political developments included a referendum, liberalisation of the economy, the adoption of the green legacy initiative and much more.

The slow growth in the international trade can also be attributed to negligible availability of branded products. The overall economic growth in the pta subregion has averaged 3. However, it is still one of the poorest countries in the world. The effect of exportled growth strategy on the ethiopian. Ethiopia anticipates 11% economic growth november 10, 2017 ethiopias government has forecast an overall 11 percent economic growth this ethiopian fiscal year. Oct 03, 2014 financial regulation and supervision in ethiopia 1. The growth equation further revealed that rainfall variability has a significant negative impact on economic growth as the economy. The average rate of growth of gross domestic product gdp in real terms for the period 196768197172 was 4 per cent per annum. This study indicated also that the country has no problem of capacity constraint as to the flow of foreign aid. 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. Dec 23, 2019 since pm abiy came to power in april 2018, ethiopia has undergone major political and economic changes. Economic reforms and structural changes in ethiopia since.

Dec 29, 2014 airlines have recently improved profit margins driven by economic growth and lower fuel costs. As discussed in chapter three a number of factors including investment, trade, economic policy, institution and many others affect economic performance of countries. Annual growth rates dropped by and 21% during the drought years of 198283 and 198485, respectively. More than half of the worlds population lives in urban areas. Accordingly, investments on growth enhancing sectors such as infrastructure and social.

In 2018, the share of agriculture in ethiopias gross domestic product was 31. For more than a decade before 2016, gdp grew at a rate between 8% and 11% annually one of the fastest growing states among the 188 imf member countries. Although ethiopia started from a low base, its investment in propoor sectors and agriculture has paidoff and led to tremendous achievements in economic growth and poverty reduction, which in turn have helped improve the economic prospects of its citizens, says guang zhe chen, world bank group country director for ethiopia. Increased military expenditures during 1999 and 2000 largely due to the war with eritrea threatened stability. The forecast by ethiopian national plan commission is based on the performance of the first quarter of the budget year and an increase by 0. The ethiopiadjibouti railway is the first electrified railway in east africa with chinese standards and equipment.

Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. It was around 1960, that the potential of tourism drew the attention of the imperial government authorities. Ethiopia economic outlook african development bank. Thereafter, high levels of foreign investment and the governments reform agenda will stimulate economic growth throughout 202124. The theme of fydp ii nurturing industrialization for economic transformation and human. Download pdf a proclamation to amend the national bank of ethiopia establishment proclamation. The government holds all land and issues longterm leases to tenants. Over the last four years of the plan, the economy has achieved an average annual growth of 10.

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. Economic development ethiopia issues, growth, economic. Economic diplomacy oxford research encyclopedia of. Ethiopian standard journal is a research journal that focus on standard and standardization. It in particular examines how fdi affects gdp growth, both directly and also conditioning on trade liberalization that ethiopia adopted in early 1990s. The two cells become one and are centered in the new space. The results suggest that, remittances do have a significant impact on economic growth by increasing real private investment and fixed capital accumulation which increase capital accumulation, reduction in current account deficit, external debt burden and improve educationskills of the households by improving human capital. Productive capacity and economic growth in ethiopia. Ethiopias ruling coalition agree to merge ethiopian monitor. This paper measures the impact of foreign direct investment fdi on economic growth in ethiopia based on annual time series data over the period 1974 to 2011. Recent economic developments the ethiopian economy continued its strong expansion in fy14 with real gdp growing by 10. This survey was conducted as part of the eu funded project.

Ethiopia economy gdp, inflation, cpi and interest rate. This registered growth is only a fraction above the population growth rate in the subregion. In the same way, after four years, that means in 2010, the country has achieved 10. In ehtiopia, in 2011, an official document states that. In 2006, 2010 and 20, the average ssa countries annual economic growth was 6. This page provides ethiopia gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. Ethiopia article about ethiopia by the free dictionary. Objectives as ethiopia is blessed with abundant natural tourist attractions,the primary objective of the study was to clearly asses the challenge and prospect of ethiopian tourism policy. Whereas, for the rapid economic development of ethiopia stable price and foreign exchange rate and healthy financial system are being necessary.

In line with this principle, ethiopia has been implementing its first fiveyear growth and transformation plan gtp that aims to achieve an average annual economic growth of 1115%. High growth and lower oil prices will drive further reductions in poverty. This economic growth was higher than the average ssa economic growth. Administration at hawassa university, college of business and economics, school of management and accounting, has completed his research project on assessing the impact of core banking and service quality on customer satisfaction, under our advice, guidance and supervision. However, some sectors were merged together for calculation due to data. Ethiopia gdp annual growth rate 19812018 data 2019. In section 3, we empirically document the changes ithat likely contributed to structural transformation in the country and discuss economic and income growth, urbanization and commercial surplus, roads, access to and use of communication technology by brokers and traders, and adoption of improved agricultural technologies. Ziway, abijatta, langano, shalla, awassa, abaya, chamo and chew bahir, which drain an area of about 52,000 km2. Aug 02, 2018 if one accepts the fact that ethnicity is now part of ethiopian political landscape but also wants to merge it with a nonethnic national identity, the way to bring about this conversion is to design a political system such that ethnic politics gives birth to a transethnic federal system. Ethiopia economy, politics and gdp growth summary the. Poverty defined as the number of people unable to attain the minimum living standard 3.

Financial regulation and supervision in ethiopia by. An ethiopian nation natsiia, nation in the historical sense is forming in ethiopia. Chinesebuilt railway a lifeline for ethiopias economy. Given the low level of crop yields relative to those of other countries with comparable resources, and relative to best farmers and experiment stations, a. It aims to provide a summary of the current size and scale of the social enterprise sector in ethiopia. In addition, the central statistical in addition, the central statistical agency and the ethiopian roads authority w ere instrumental in. Sep 08, 2019 the chinese embassy denied him entry visa claiming that he is under personanongrata. Ethiopias economy experienced strong, broadbased growth averaging 9.

The leaders paid singular focus to economic growth and bilateral investment. While a rising working age population will continue to support potential gdp growth, total factor productivity growth and investment are gradually expected to decline. Economic growth, development and poverty in ethiopia. However, in 197273 the gdp growth rate began to decelerate, amounting to 2. The study has examined the impact of foreign aid on investment and economic growth in ethiopia over the period 1970 to 2009 using multivariate cointegration analysis. The development of keynesian theories of economic stability has encouraged consideration of government expenditures as one element in a macrostatic model.

The paper starts with an overview of ethiopia s economic growth and the change in the domes tic economic structure. Hawassa university college of business and economics school. Growth will remain high in the short term while gradually declining in the medium term. Ethiopia economic growth is good but it must emphasis creating at least 40 million middle class in the next 10 years. Pdf ethiopia is a country that is particularly exposed to possible adverse impacts of. Significant achievements were made in reducing the level of poverty in the country. The oecd green growth strategy, launched in may 2011, provides concrete. This statistic shows the share of economic sectors in the gross domestic product gdp in ethiopia from 2008 to 2018. Pdf determinant of economic growth in case of ethiopia. Literature historical development of tourism in ethiopia according to the ministry of tourism and culture, tourism as one of the economic sector came into being in ethiopia very recently. The manufacturing sector is seen as the success of ethiopia s growth. The relationship between inflation, money supply and. Ethiopias fdi steady growth, an upshot of its economic diplomacy.

Growth and transformation plan gtp 201011201415 draft. This article investigates how the abovementioned four marketbased reforms could result in efficiency and promote the competitive position of the ethiopian banking sector. Pdf urbanization and spatial connectivity in ethiopia. Ahmed is the second ethiopian leader to visit somalia.

The relationship between inflation, money supply and economic growth in ethiopia. Moreover, the government of ethiopia has taken a position on this matter. Productive capacity and economic growth in ethiopia the united. Developments in international trade relations, such as the growth of regional trade organizations, the creation of the world trade organization wto, and the extension of the trade talks agenda to include new issues such as internet gambling, highlight the need to recognize and understand new actors, new topics, and new forums of economic. Favorable rains in 198283 198687 and 199596, on the other hand, resulted in growth rates exceeding 14% per annum. The profitability outlook for the global airline industry is provided in part 15 of this series. Ethiopias economic growth for the 2012 fiscal year was 9. The statements, findings, conclusions, and recommendations found in this study are those of the authors and do not necessarily reflect the views of the office of advocacy, the united states small business administration, or the united states government. The role of small business in economic development of the. Maintaining a growth rate in agricultural gdp of six percent would provide enough employment growth to contribute to rapid economic transformation of the economy and rapid decline in poverty. The second five year development plan fydp ii 201617 202021 takes into account the integration of the five year development plan fydp and the national strategy for growth and reduction of poverty nsgrpmkukuta planning frameworks. Oct 03, 2014 journal of economics and sustainable development issn 22221700 paper issn 22222855 online vol. Wef ethiopia is the fastestgrowing economy in 2017, according to the world banks latest edition of global economic prospects.