Friday, October 21, 2011

Analysis of Ethiopia’s economy

Shimelse Ali, an economist at the Carnegie Endowment for International Peace in Washington, offered a brief analysis of Ethiopia’s economy on 20 October titled “Ethiopia’s Imperfect Growth Miracle.”
Ethiopia: Planting Avocado Trees in Katbare. July 2011. Flickr/Trees for the Future.
He stated that since 2004, Ethiopia’s economy has grown on average by an unprecedented 11 percent. Per capita income has more than doubled over the same period, albeit from a very low base. Although the economy remains heavily reliant on agriculture, the service sector has driven recent growth, accounting for nearly half of GDP since 2004.

He concluded that despite the country’s remarkable growth performance in recent years, its record in promoting socio-economic development is mixed. Ethiopia has made significant strides in reducing rural poverty, improving life expectancy, and raising education levels. But these gains have come with rising urban income inequality and surging inflation.

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