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Ethiopia's Economy

Ethiopia at a Glance

An overview of Ethiopia, Africa's second most populous country with over 120 million people, its fast growth in the 2000s and 2010s, and its challenges.

Ethiopia is Africa’s second most populous country, after Nigeria, with over 120 million people.

Fast growth

From the mid-2000s to the late 2010s, Ethiopia grew among the fastest in the world, often near 10% a year by official figures.

Still poor

Despite growth, average incomes remain low, and most people work in farming.

Landlocked

Ethiopia lost its coastline when Eritrea became independent in 1993, and relies on Djibouti’s port.

History

Ethiopia was never colonised (apart from Italian occupation from 1936 to 1941), and it suffered severe famines, including in 1983-85.

The famine and the boom

In the 1980s, famine images defined Ethiopia; by the 2010s, cranes filled Addis Ababa's skyline.

Thinking Ethiopia's story is only famine

It had one of the world's fastest growth runs.

Key takeaways
  • Ethiopia has over 120 million people.
  • It grew very fast from the mid-2000s.
  • Incomes remain low.
  • It is landlocked and relies on Djibouti.
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