ECONOMY
General Information
The main currency of Ethiopia is ETB – Ethiopian birr (Br).
Key priorities of the country's socio-economic development are maintaining high growth rates, strengthening macroeconomic stability, diversifying the economy, and transitioning from the development of individual sectors to a multi-sectoral model.
According to World Bank data, Ethiopia's nominal GDP in 2023 amounted to 163,70 bil. US dollars.
Ethiopia's economy is structurally based on agriculture – approximately 44% of GDP; industry – approximately 13% of the country's GDP; service sector – approximately 39% of GDP.
The main sources of foreign currency earnings are export goods: coffee, gold, and agricultural products (including live animals, hides, oilseeds, and flowers). In addition, currency comes from international investments attracted to infrastructure, construction, agriculture, and light industry.
Special attention is paid to digital transformation (job creation, service improvement, attracting investments), modernization of key sectors, and export development (diversification, attracting foreign investments).
Share of Economic Sectors
Ethiopia's economy is based on three key sectors: agriculture, industry, and services.
Agriculture is the main sector of Ethiopia's economy, accounting for approximately 44% of GDP. About 85% of the country's population is employed in agriculture. The country is a major exporter of coffee (approximately 60% of export revenues), tea, fruits, and oilseed crops. Livestock farming produces cattle, sheep, goats, and camels.
The industrial sector demonstrates high growth rates, accounting for approximately 13% of the country's GDP. Manufacturing includes food (processing of coffee, oilseed crops), textile, leather, chemical industries, and metalworking. Production is actively developing.
The service sector accounts for approximately 39% of GDP. It includes finance, transport, and telecommunications.
In 2024, Ethiopia's exports amounted to 1,3 bil. US dollars. Imports in 2024 (a historical maximum) are estimated at 5,07 billion US dollars. The structure of Ethiopia's foreign trade is characterized by the predominance of agricultural products in exports (coffee, vegetables, oilseed crops), as well as exports of gold, hides, live livestock, and leather goods. The main imported goods are oil, petroleum products, machinery, metal, medicines, and food products. The main trading partners are China, India, USA, UAE, and European countries.
Export and Import
Exports form an important part of Ethiopia's economy. In 2024, exports reached 1,3 bil. US dollars. Key export items are:
- Gold (21% of total exports);
- Coffee (19%);
- Other goods: live animals, oilseed crops, flowers, and khat.
Main export partners: Switzerland (21%), Somalia (11%), China (8%), Sudan (8%), and Saudi Arabia (7%).
Ethiopia's imports as of the second quarter of 2024 amounted to 5.07 billion US dollars. The largest share of imported products consists of:
- Textiles;
- Food products;
- Petroleum products;
- Vehicles.
Main import partners: China (18% of total imports), Saudi Arabia (13%), USA (9%), Russia, and India.
Labor Force
Ethiopia's labor force as of 2023 is approximately 62,65 mil. people. The unemployment rate in 2022 was 18,9%.
The distribution of employment by economic sectors is traditionally characterized by a high share of those employed in agriculture.
Distribution of employment by economic sectors:
- Agriculture – approximately 62% of employed;
- Industry – approximately 7% of employed;
- Service sector – approximately 31% of employed.
Average wages in Ethiopia vary greatly; average monthly income in different sources is indicated around 7,760 — 9,776 ETB depending on age. There is no national minimum wage for the private sector in the country.
Ethiopia's labor market is characterized by:
- High share of those employed in agriculture;
- Transition to a mixed agricultural-industrial economy.