Growing exposure to the unfavorable external environment
D4
SENSITIVE RISK
-
Economic risk
-
Business environment risk
-
Political risk
-
Commercial risk
-
Financing risk
-
Economic risk
-
Business environment risk
-
Political risk
-
Commercial risk
-
Financing risk
Swipe to view more
GDP | USD107.645 bn (World ranking 64, World Bank 2020) |
Population | 114.964 mn (World ranking 12, World Bank 2020) |
Form of state | Federal Parliamentary Republic |
Head of government | Abiy Ahmed Ali (PM) |
Next elections | 2026, legislative |

- Key partnership with China on Africa’s new silk road
- State committed to meeting development objectives such as the MDGs and SDGs
- The international community is supportive, particularly in times of drought-induced famine
- High GDP growth rates in recent years, with an annual average +10.2% in 2006-16
- Large domestic market (population over 95mn)
- Fastest growing manufacturing sector in Africa.
- Strong track record of attracting FDI from both advanced and emerging economies.

- International agencies periodically question the commitment on protection of human rights
- The region (Horn of Africa) is high risk. Ethiopia has borders with Sudan, South Sudan, Eritrea and Somalia - all offering challenges
- The country is landlocked, which increases transport costs and vulnerability to external shocks.
- High dependence on rain-fed agricultural output but recurrent drought, locust infestations etc. Water rights are a source of potential conflict in the Nile area.
- Continuing aid dependence, despite significant external debt forgiveness and re-profiling.
- Fiscal and current account deficits and weak foreign exchange reserves (about 2 months of import cover)
Trade structure by destination/origin
(% of total, 2020)
Exports | Rank | Imports |
---|---|---|
Sudan
27.7%
![]() |
1 |
![]() |
Hong Kong
10.8%
![]() |
2 |
![]() |
China
9.6%
![]() |
3 |
![]() |
United States
9.0%
![]() |
4 |
![]() |
Switzerland
4.4%
![]() |
5 |
![]() |
Trade structure by product
(% of total, 2020)
Exports | Rank | Imports |
---|---|---|
Coffee, tea, cocoa, spices, and manufactures thereof
28.8%
|
1 |
8.9%
Petroleum, petroleum products ans related materials
|
Vegetables and fruits
17.1%
|
2 |
7.4%
Road vehicles
|
Oil seeds and oleaginous fruits
14.2%
|
3 |
7.0%
Cereals and cereal preparations
|
Leather, leather manufactures and dressed furskins
8.0%
|
4 |
6.1%
Electrical machinery, apparatus and appliances, n.e.s.
|
Gold, non-monetary (excluding gold ores and concentrates)
4.4%
|
5 |
6.0%
Iron and steel
|
Contacts
Read our latest reports
-
Americas
-
Europe
-
Asia Pacific
-
Middle East
-
Africa