Economy of Ethiopia

Economy of Ethiopia

Gross Domestic Product 2012

GDP (purchasing power parity): $103.1 billion (2012 est.)

GDP real growth rate: 7%

GDPper capita (PPP): $1,200

Per capita income: $370

GDP composition by sector

Agriculture: 46.6%

Industry: 14.6%

Services: 38.8% (2012 est.)

Inflation: 21.7% (2012 est.)

Currency: birr (ETB)

Business Languages

The commercial languages include the following

  • Oromigna
  • Amarigna
  • English


The key means of transport in Ethiopia include roads, rail, water and air transport. Railway covers an area 681 kilometres and roads covers 101,359 kilometres and there is only one river that is River Baro used for transport and the country has over 84 Airports

Energy in Ethiopia

The major sources of energy in Ethiopia include; oil, natural gas and hydropower and Ethiopia is one of the few African countries with the potential to produce hydroelectric and geothermal power.

Challenges in Ethiopia

  • Large and growing population
  • Low income levels which impact on demand.
  • Huge development challenges in terms of education, health, water and sanitation
  • The problem of being a landlocked country hence high transportation of goods
  • Still faced with governance issues and unequal distribution of funds in the country
  • Ethiopia suffers a great deal from natural challenges such as drought and unpredictable flooding.
  • Illiteracy is another major reason why Ethiopia wallows in poverty.

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of blog and company. Learn more about him here and connect with him on his social medias below

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