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Economy of Ethiopia

Ethiopia is considered to be a developing nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developing nation, Ethiopia may not be able to offer consistent social services to its citizens. These social services may include things like public education, reliable healthcare, and law enforcement. Citizens of developing nations may have lower life expectancies than citizens of developed nations. Each year, Ethiopia exports around $3.21 billion and imports roughly $10.68 billion. 5.2% of population in the country are unemployed. The total number of unemployed people in Ethiopia is 5,591,814. In Ethiopia, 29.6% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Ethiopia is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 5.5% of GDP. The Gini Index of the country is 33. Ethiopia is experiencing good equality. The majority of citizens in Ethiopia fall within a narrow range of income, although some cases may show significant differences. Ethiopia has a Human Development Index (HDI) of 0.435. Ethiopia has a lower medium HDI score. This indicates that the majority of citizens will struggle to attain a desirable life due to flawed economic and social systems. The Global Peace Index (GPI) for Ethiopia is 2.234. The strength of legal rights index for Ethiopia is 3. Overall, it is considered to be rather inadequate - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders to some degree; credit information may be sufficient, but hardly available, or, the oppoiste case, available but not sufficient.

Currency

The currency of Ethiopia is Ethiopian birr. The plural form of the word Ethiopian birr is birrs. The symbol used for this currency is Br, and it is abbreviated as ETB. The Ethiopian birr is divided into Santim; there are 100 in one birr.

Credit rating

Credit rating is the extent to which international investors trust a country in paying debts and upholding the country's obligations in terms of crediting. There is no information on the credit rating of Ethiopia.

Central bank

The prime lending rate of Ethiopia's commercial banks is 11. In Ethiopia, the institution that manages the state's currency, money supply, and interest rates is called National Bank of Ethiopia.

Public debt

Ethiopia has a government debt of 60% of the country's Gross Domestic Product (GDP), as assessed in 2014.

Tax information

The corporate tax in Ethiopia is set at 20%. Personal income tax ranges from 7.71% to 61.96%, depending on your specific situation and income level. VAT in Ethiopia is 24%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Ethiopia is $145100 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Ethiopia was last recorded at $1 million. PPP in Ethiopia is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Ethiopia is 46,017 billion. Based on this statistic, Ethiopia is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Ethiopia was last recorded at $0 million. The average citizen in Ethiopia has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Ethiopia averaged 8.2% in 2014. According to this percentage, Ethiopia is currently experiencing significant growth. Countries that are experiencing significant growth offer the best chance for a substantial return on investment, as GDP growth rate is the most important indicator of economic health. As GDP grows, business, jobs, and personal income grow as well. To read more about financial information click on finances of Ethiopia.

Industry

Major industries in the country are food processing, beverages, textiles, leather, chemicals, metals processing, cement. The total labor force of Ethiopia is 51,449,890 people, wherein 5.2% of population in the country are unemployed. The total number of unemployed people in Ethiopia is 5,591,814. The Industrial Production growth rate of Ethiopia is 7.5%.To read more about industrial information within Ethiopia click on industry of Ethiopia.

Agriculture

There are 112080 km2 of arable land in Ethiopia, and it comprises 10% of the country's total territory. There are 119358 km2 of cultivated land in Ethiopia. The country's major agricultural crops and products are cereals, pulses, coffee, oilseed, cotton, sugarcane, potatoes, qat, cut flowers, hides, cattle, sheep, goats, fish.To read more about agriculture click on agriculture of Ethiopia.