According to Trading Economics global macro models and analysts, Ethiopia’s GDP is predicted to reach 110.00 USD billion by the end of 2021. According to our econometric models, Ethiopia’s GDP will trend around 112.00 USD billion in 2022 and 115.00 USD billion in 2023 in the long run.
What will Ethiopia’s GDP be in 2019 and 2020?
Ethiopia ranks 65th out of 196 nations in terms of GDP in 2020, with a total of $96,611 million dollars. Ethiopia’s GDP increased by $4,003 million in absolute terms in 2019. Ethiopia’s GDP per capita in 2020 was $840, down $14 from the previous year’s $826.
Is Ethiopia a poor or wealthy country?
Ethiopia’s strategic location as a launching pad in the Horn of Africa, near to the Middle East and its markets, provides it strategic superiority. Ethiopia is a landlocked country that shares borders with Eritrea, Somalia, Kenya, South Sudan, and Sudan, and has relied on Djibouti’s main port for international trade for the past two decades. With the recent Eritrean peace accord, Ethiopia is expected to regain access to the Eritrean ports of Assab and Massawa as well.
Ethiopia is Africa’s second most populous country after Nigeria, with 115 million inhabitants (2020), and the region’s fastest-growing economy, with 6.1 percent growth in FY2019/20. It is, nevertheless, one of the poorest, with a gross national income per capita of $890. By 2025, Ethiopia wants to be classified as a lower-middle-income country.
Ethiopia has been one of the world’s fastest growing countries over the past 15 years (at an average of 10 percent per year). Capital accumulation, particularly through public infrastructure projects, was a major driver of growth, among other things. Due to COVID-19, Ethiopia’s real GDP growth slowed in FY2019/20 and even more in FY20220/21, with growth in industry and services falling to single digits. Agriculture, which employs more than 70% of the population, was unaffected by the COVID-19 epidemic, and its contribution to growth improved marginally in FY2019/20 compared to the previous year.
Between 2010 and 2020, persistent strong economic growth led in positive trends in poverty reduction in both urban and rural areas. The percentage of the people living in poverty has reduced from 30% in 2011 to 24% in 2016, and human development indicators have improved over time. Despite this, many flaws remain. Inequality is on the rise, owing to the growing discrepancy between urban and rural areas. The bottom 10% of the population has not grown in terms of consumption (as of 2005), notably in rural areas, and inequality is on the rise. Furthermore, COVID-19 has exacerbated existing flaws.
The government has unveiled a new 10-year development plan that will run from 2020/21 through 2029/30 and is based on the 2019 Home-Grown Economic Reform Agenda. The plan intends to maintain the phenomenal growth achieved during the preceding decade’s Growth and Transformation Plans while easing the transition to a more private-sector-driven economy.
Ethiopia’s key problems include maintaining positive economic growth and accelerating poverty reduction, both of which necessitate significant progress in job creation and stronger governance to guarantee that growth is equitable across the country. The government spends a large portion of its budget on anti-poverty initiatives and investments. Large-scale donor financing will continue to play an important role in funding pro-poor activities in the near future. The following are some of the most significant challenges:
- Ethiopia, like the rest of the world, has been hit hard by the COVID-19 pandemic’s catastrophic social and economic consequences. While exports and foreign direct investment have recovered in 2020/21, and jobs have recovered, there are likely to be some long-term scars. Urban employment has not entirely recovered, some people and businesses continue to report income losses, and poverty levels are projected to have risen.
- The battle, which began in November 2020, is expected to have an impact on agriculture productivity and food security in the country’s north, as well as stymie economic recovery.
- Ethiopia’s Human Development Index is 0.38, implying that a kid born today in Ethiopia will be 38 percent as productive as if he or she had access to a complete education and good health. This is lower than the Sub-Saharan Africa average, but slightly higher than the low-income country average. Learning poverty affects 90% of children under the age of five, and 37% of children under the age of five are stunted.
- Ethiopia has been dealing with the largest locust invasion in decades since 2020. This could jeopardize Ethiopia’s development progress and jeopardize millions of Ethiopians’ food security and livelihoods.
- A nascent private sector whose ability to grow and create jobs has been hampered by business climate and competitiveness concerns.
- The growing workforce (roughly 2 million per year) puts strain on the labor market’s absorption capacity, necessitating job improvement while also providing enough new jobs.
In Ethiopia, which region is the most prosperous?
The Amhara Highlands, according to Ethiopia’s government website, get 80% of the country’s total annual rainfall and are the country’s most fertile and climatically favorable region. The Blue Nile originates at Bahir Dar, in the Amhara Region’s Lake Tana. When the Blue Nile’s flow reaches its peak (during the rainy season from June to September), it supplies roughly two-thirds of the Nile’s water. Until the Aswan High Dam was completed in Egypt in 1970, the Blue Nile, along with the Atbara River to its north (which also flows out of the Ethiopian Highlands), caused annual Nile floods that contributed to the Nile Valley’s fertility, allowing the rise of ancient Egyptian civilization and, in turn, the development of Egyptian mythology.
Is Ethiopia Africa’s richest country?
- Nigeria: You’ve probably heard speeches or read stories in which Nigeria was referred to as Africa’s largest economy. That’s primarily due to the magnitude of its GDP. Nigeria has Africa’s biggest GDP, estimated to be $514.05 billion in 2021.
- Egypt: This North African country boasts Africa’s second-largest GDP. It has the biggest GDP in North Africa, $394.28 billion, and is one of just three countries from the region in the top 10.
- South Africa: With a GDP of $329.53 billion, this country in Southern Africa is third on the list. South Africa is one of just two Southern African countries to be included on the list.
- Algeria is the second Northern African country to appear on this list. Algeria has the fourth largest GDP in Africa, according to Statista, with $151.56 billion.
- Kenya has a GDP of $106.04 billion and is located in East Africa. It is the only country from Eastern Africa that has made the top 10 list.
- Ethiopia is the only country from the Horn of Africa to appear on this list. According to Statista, the country’s GDP is $93.97 billion dollars.
- Ghana is the second-largest economy in West Africa, with a GDP of $74.26 billion dollars.
- Ivory Coast: With a GDP of $70.99 billion, this francophone West African country ranks eighth in Africa.
What is Ethiopia’s GDP and GNP?
Ethiopia’s GDP was $102.67 billion in 2020, up 8.1 percent from 2019. Ethiopia’s GDP in 2019 was $94.97 billion dollars, up 9.34% from 2018. Ethiopia’s GDP in 2018 was $86.86 billion, up 10.82 percent from 2017.
What kind of economy does Ethiopia have?
Ethiopia has a traditional economic structure in which available resources are allocated using archaic techniques, and many people practice subsistence agriculture. Ethiopia is a member of the Eastern and Southern African Common Market (COMESA).
In Ethiopia, where do the wealthy live?
When your economy has grown that much, you are forced to produce millionaires by default.
However, in December 2013, New World Wealth, a South African research and consulting firm, reported that the number of US-dollar millionaires in Ethiopia increased by 108 percent between 2007 and 2013, faster than in any other country on the African continent.
These new tycoons in Addis Ababa live in posh neighborhoods like Bole, an airport-adjacent neighborhood packed with embassies and hotels, or the Old Airport region in the south-west, which is home to the Addis Ababa Golf Club.
They mingle with government officials at the posh Hilton and Sheraton hotels during the day.
The Gaslight at the Sheraton and the Suba bar near the center of town are two examples of bars and nightclubs that cater to more affluent tastes.
What is Ethiopia known for?
Ethiopia is located in the Horn of Africa and is a landlocked country. It boasts the continent’s second-largest population of 109,358,444 people and the tenth-largest surface area of 1,100,000 square kilometers. The capital is Addis Ababa, and the country is bordered on the west by Sudan, on the east by Djibouti and Somalia, on the south by Kenya, and on the north by Eritrea.
Ethiopia was one of just two African countries to retain its independence when European powers split the continent at the Berlin Conference. It was one of the League of Nations’ four African members. After a brief period of Italian rule, it became a member of the United Nations. Ethiopia’s flag was adopted by a number of newly independent African countries. Several international groups focused on Africa met in Addis Ababa.
Territorial contraction in the north and extension in the south have resulted in the current borders. Conquest and migration were used to complete this expansion. After Haile Selassie was deposed in 1974, civil warfare erupted. It is a founder member of the Non-Aligned Movement, as well as the Group of 77 and the Organization of African Unity. The African Union, UNECA, and the Nile Basin Commission all have their headquarters in Addis Ababa. Ethiopia has one of the most strong militaries in Africa. It has its own alphabet, calendar, and time system. The country has the most UNESCO World Heritage sites in Africa.
The terrain is diverse, including waterfalls and volcanic hot springs. It has some of Africa’s highest and lowest mountains. Sof Omar, Africa’s largest cave, is located in Ethiopia. Dallol is home to one of the world’s hottest spots. Ethiopia is home to 80 ethnic groups today. The two largest are Oromo and Amhara. Ethiopia is known for being the birthplace of the coffee bean. It’s also famous for gold medalists and rock-hewn chapels. Ethiopia produces the most honey and coffee in Africa and has the continent’s largest cattle population.
Ethiopia is affiliated with all three Abrahamic religions. In the fourth century, it declared Christianity to be its official religion. While the bulk of the population is still Christian, one-third of the population is now Muslim. At Negash, it features Africa’s earliest Muslim town and was the location of Islam’s first hijra. Until the 1980s, Ethiopia had a sizable Jewish population. Ethiopia is the spiritual home of the Rastafarian religion. Ethiopia has Africa’s second-largest hydroelectric potential and accounts for 85 percent of the Nile’s flow. Despite this, it had a series of famines in the 1980s, perhaps killing millions of people. The economy has gradually recovered and is currently the largest in East Africa and one of the world’s fastest growing. The country’s political situation is remains precarious.