How is trade influencing Ethiopia’s development?

Ethiopia currently has a trade deficit (exports = $3bn, imports = $11bn). This means debt remains and the government has less money to invest in development.

G 1

  • 80% of exports are agricultural
  • 46% of GDP is from agriculture
  • Ethiopia is one of the world’s largest producers of food and flowers, although this economy is vulnerable to climate change and global price changes
  • Economy has been growing at 11%, considerably higher than the rest of the world. GNI per capital has increased from $203 in 1990 to $660 in 2015. Fewer people now live in poverty.
  • Increase in international trade is evidecen that the government and economy are becoming more stable.
  • Ethiopia’s top five imports are petroleum, trucks, fertilisers, construction and wheat. Refined petroleum and construction materials show that Ethiopia is developing as these things are needed for manufacturing and improving infrastructure.
  • Secondary industry is taking off, TNCs are being encouraged to invest.
  • Tourism and travel is increasing. Over 2.5million people work in tertiary sector jobs in tourism. There is a huge potential for tourism in Ethiopia and numbers have been growing. There is still a lack of hotels and services for tourists, but investment is increasing.