Economics sphere: Ethiopia's Economy

Some magazines regarding economy predicted Ethiopia’s economy to grow by more than 7% and that it will be the 4^th country with the fastest economic grown.

This year in Ethiopia the new government started reforming the economy doing privatizations of state enterprises and rationalisation of government regulation. Although these reforms started, the state still has a major power in the economy and so far these reforms attracted new kinds of investment.

The Ethiopian economy is based on agriculture, which contributes 42% to GDP and more than 80% of exports, and employs 80% of the population. Ethiopia's agriculture is plagued by periodic drought, soil degradation caused by inappropriate agricultural practices and overgrazing, deforestation, high population density, undeveloped water resources, and poor transport infrastructure, making it difficult and expensive to get goods to market. Yet agriculture is the country's most promising resource. Potential exists for self-sufficiency in grains and for export development in livestock, flowers, grains, oilseeds, sugar, vegetables, and fruits..

The fact that most of the Ethiopian population speaks English is a booster of the economy because it contributes to a better contact with the outside world and it propels the knowledge of the people about other countries. This fact is important for people because it opens many doors in relation to other countries that without the knowledge of English would not be possible and, therefore, the population of Ethiopia will go to other countries to study or work and have a better future as well as their children.

Here are some information about Ethiopia's economy, defence and international relations;ant

ECONOMY:
Currency: birr.
GDP: U.S. $ 6.5 billion (1998).
Agricultural GDP: 50% (1998).
Industry GDP: 7% (1998).
GDP services: 43% (1998).
GDP growth: 4.8% per year (1990-1998).
Income per capita: $ 100 (1998).
Labor force: 26 million (1998).
Agriculture: coffee, sugar, cereals.
Livestock: cattle, sheep, goats, poultry.
Fishing: 10 400 t (1997).
Mining: gold, kaolin, soda ash, stones and precious metals.
Industry: beverages, textiles, tobacco, non-metallic mineral products.
Exports: U.S. $ 540 million (1998).
Imports: $ 1.4 billion (1998).
Business partners: Saudi Arabia, Germany, USA, Italy, Japan, India, UK, Djibouti.